← Back to context

Comment by HWR_14

6 hours ago

I would imagine a fundamental analysis model should remain fairly consistent over the years. It should be immune to a red queen situation.

Yes, actually there are.

Honestly: People think that "trading models" (whatever this should be) needs to be somewhat "supersophisticated" and "extreme driven by whatever complex math" - the brutal truth, esp. for smaller trading shops is much more simpler:

- Standard approaches like trend following or mean reversion are working very well since decades. (I can speak only for the last ~25 years)

Complexity in trading is not about "building that one specific niche-super-strategy", but more about putting all the ideas in a reproduceable approach/process to repeat it over and over again to grow the money.