Weekly Systematic Trading Update
Week ending November 14, 2025
Stocks (S&P 500 index) started the week with gains but, due to a rise in political, geopolitical, and economic uncertainty, ended nearly unchanged. Bonds attempted to rally earlier in the week but fell as yields rose due to fears that a new stimulus package will force the Fed to reconsider additional rate cuts. Gold rebounded and, although it was hit by profit-taking on the last day of the week, managed to finish 2% higher. International stocks gained, although they finished the week off mid-week highs.
All in all, it was another challenging week for systematic trading, but due to a solid performance of asset cross-sectional momentum (ETFs) and long-short (Dow-30 stocks), the ensemble finished the week with a small gain of about 0.3%. We remain cautious about the markets and expect volatility to increase further due to challenging political and geopolitical objectives that complicate economic policy and increase uncertainty. Systematic trading provides a way to avoid the ineffective process of attempting to identify and comprehend market trends based on limited and noisy information. When traders and investors finally adopt systematic trading, they often wonder why it took them so long to realize its merits.
Disclaimer: No part of the analysis in this blog constitutes a trade recommendation. The past performance of any trading system or methodology is not necessarily indicative of future results.