The previous post hinted at a future piece on systematic trading. In this author's humble opinion, well tested systematic investment strategies are the antidote to the poison of expert predictions. These strategies embrace the probabilistic nature of investment markets by applying hard and fast rules for investment decisions based on actual empirical evidence. In other words, these systems do not rely on an elegant theory that is not supported by actual data (like Modern Portfolio Theory, CAPM, or the Efficient Markets Hypothesis), or on the confident views of market experts, but instead rely on rigorously tested systems developed from mountains of actual data.
These systems demonstrate an ability to do well in bad and good markets across securities, asset classes, geographies, and time frames. But don't take it from me. Take it from one of the most experienced and successful systematic trading teams in Canada, Jason Russel and Nicholas Markos at Acorn Global Investments. See their recent paper below.
Acorn Investments - Systematic Trading
For more information about systematic trading or Acorn's systems, go to their home on the Web.