Unlocking Profit Potential: Market Timing Strategies for Investment Success
Market timing is a strategy where investors adjust their risky asset allocation based on market trends. This chapter discusses different market timing methods used by finance professionals. Trading rules can help identify market trends easily. Indicators and specific conditions are crucial for profitable strategies. Quantitative trading, especially focusing on relative pricing, has become popular. Successful strategies often rely on mean-reversion strategies that consider changing relative returns and volatilities over time.