Use Seasonality To Optimize Algorithmic Strategies by Karl Montevirgen
It’s not uncommon for markets to trend based on seasonal patterns. So when your system doesn’t seem to be giving you the returns you were hoping for, it may help to turn to seasonality analysis to try and optimize your trading system.
Market seasonality and algorithmic strategies are two distinct concepts that offer a potential “edge” to traders and investors who use them wisely. Seasonality provides statistical transparency on recurring patterns of market behavior. Algorithmic trading systems employ proprietary technologies and differentiated approaches to analyzing and engaging markets with speed, accuracy, and automation.
Each approach envelops its own unique set of potential. In this article, I’ll explore the advantages that might be created by combining them. I’ll begin by taking a look at the advantages that each approach has to offer ...