Before Crypto, I had developed various Quant models for TradFi such as Stocks, Bonds, and Commodities.
Just like Web3Quant Crypto models, TradFi ones are also based on the principles of Trend, Momentum, Price Action & Relative Strength.
Since TradFi has a very different volatility profile and pace from Crypto,
the underlying logic to capture Trend and Momentum is different too.
To gain conviction and maximum value out of it, it's important to understand the Models' strengths and weaknesses.
These signals are based on a Monthly time frame, which means when the updates are published on the 1st of every month, those are "Real Time Signals" and the next signal will only be generated at the month's end.
These are ideally suited for medium to long-term investing as the signal lasts for months to years.
Model by design will NOT catch tops, bottoms, or reversals but It WILL catch the meat of the move in both directions, and that's enough to make money.
One needs to be comfortable with a certain amount of lag. That's the price to pay for trend confirmations and clean signals. It's not a bug, it's a feature.
Model signals are labeled as LONG and SHORT but you could read them as Bullish/Bearish or Entry/Exits.
I personally like NO leverage Long only investing as many of you know.
Review the past signals of each asset to get hang of how the model has performed. Whenever there have been false signals, is it something you would be comfortable with?
Model will be wrong occasionally but it will never STAY wrong and will automatically course correct.
Disclaimer: From now on I will be publishing ONLY monthly signals for TradFi, as anything more will add a lot of noise to the readers. But I personally use both Monthly and Lower time frame setups for my own trading.
NONE of what you read here is financial advice. I will share the alpha but will NOT be able to answer any "What should I do?" questions.
** Web3Quant is not registered with any financial regulatory agencies. Web3Quant is purely a research publishing firm and does not provide any personalized financial advice. Do your own research and consult your financial advisor.**