Technology Background on Long and Short Bond Strategies

It is extremely challenging to extract lasting and actionable patterns from extremely volatile and noisy market signals. In theory, timing the market is impossible—and in practice, that is a good first approximation. However, small but significant advances made over the past two decades in several contributing areas – briefly outlined below — have combined to lead to the recent breakthrough reflected in the three related Long/Short Bond Strategies (Tactical, Opportunistic, and Steady), having high Sharpe ratios but varying degrees of return, risk, and market exposure.

Elder Research continues to invent the underlying science necessary to address what is likely the hardest problem of all: accurately anticipating the enormous “ensemble model” of the markets. Learn about our long and short bond strategies in this white paper.

View the White Paper