Active Trading Demands New Tools, Approaches

feb8-1

Recent equity trading investment and trading trends are anomalous. These are set against a backdrop of: structural changes in markets and investing styles; the rise of newer technologies such as Cloud, Blockchain, and AI; regulation; and the effect of massive data computation (“Big Data”) and the attendant information tsunami. The present is characterized by passive investment – a reaction to the vast amount of noise vs signals – that has minimized the role of active strategy and style. The underlying backdrop may affect markets and trading significantly, and eventually shift the pendulum from passive strategies back to a mix of active and passive using technology that generates actionable insight previously lost in the noise. For the smaller money manager, this will be very good news indeed, as they and their end clients gain access to capture alpha rather than index performance…