Trader’s Guide to Front-Running Commodity Seasonality

Quantpedia
Dec 5, 2024

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Seasonality is a well-known phenomenon in the commodity markets, with certain sectors exhibiting predictable patterns of performance during specific times of the year. These patterns often attract investors who aim to capitalize on anticipated price movements, creating a self-reinforcing cycle. But what if we could stay one step ahead of the crowd? By front-running these seasonal trends — buying sectors with expected positive performance (or shorting those with negative seasonality) before their favorable months begin — you can potentially gain a significant edge over traditional seasonality-based strategies. In this blog post, we explore how to construct and backtest a systematic strategy using commodity sector ETFs to exploit this seasonal front-running effect.

https://quantpedia.com/traders-guide-to-front-running-commodity-seasonality/

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Quantpedia
Quantpedia

Written by Quantpedia

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