Episode 396: We're Talkin' Futures, Backtesting Considerations, And That Big Mo (Again)

Risk Parity Radio

In this episode we answer emails from Lucas, Martijn, and Alexi (a/k/a "the Dude"). We discuss futures contracts and the efforts required to use them, being careful about backtests and interpreting them, and more musings on Big Mo momentum.
Links:
Father McKenna Center Donation Page: Donate - Father McKenna Center
Martijn's Link: testfol.io/?s=aoTgPMqhGQA
Portfolio Matrix (Start Date Sensitivity): Portfolio Matrix – Portfolio Charts
The Dude's First Link: Asset Correlations
The Dude's Second Link: testfol.io/?s=aKrdp1uCnEu
The Dude's Third Link: testfol.io/?s=kUK5djVum0A
Amusing Unedited AI-Bot Summary:
Unlock the secrets of futures trading and leveraged ETFs as we tackle complex investment strategies, inspired by a thought-provoking listener email from Lucas. Discover how you can master the intricacies of futures contracts, from rolling them over to navigating market conditions like backwardation and contango, without getting overwhelmed. Learn why leveraged ETFs were created to simplify leverage acquisition, and get insider recommendations on the best platforms to embark on futures trading. Martain, another keen listener, challenges us with a debate on straightforward 1.5 times equities strategy versus modern portfolio theory, leading to a rich discussion on investment approaches.
Venture further into the world of leveraged risk parity portfolios and how hedge funds are using them to optimize risk-reward profiles during the accumulation phase. Comparing these advanced strategies to more straightforward leveraged S&P portfolios, we emphasize the essential role of historical data in shaping robust investment decisions. Be wary of the allure of short-term gains as we dissect the role of momentum funds in risk parity portfolios and the significance of diversification in securing stable outcomes. Through listener insights and expert analysis, this episode is a treasure trove for anyone seeking to broaden their understanding of strategic investing.

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Разделы

1. Episode 396: We're Talkin' Futures, Backtesting Considerations, And That Big Mo (Again) (00:00:00)

2. Risk Parity Radio Exploring Investment Strategies (00:00:01)

3. Investment Strategy Analysis and Diversification (00:07:15)

4. Long-Term Data Analysis in Investing (00:13:52)