August eighteenth, two thousand twenty-five
Systematic Funds: An Introductory Guide (Part One) — CTAs
One. Positioning of systematic funds
When discussing fiscal dominance, one must also mention monetary dominance as its counterpart...
In the interest-rate market, although Treasury yields have risen for two consecutive weeks, CTA continues to buy 10-year and 30-year U.S. Treasury futures. This is mainly because higher yields have dropped out of the recent lookback window, allowing futures price trends to continue. Positions in the 10-year contract are net long across all models, while positioning in the 30-year contract is mixed.
In foreign exchange, CTA’s short positions against the U.S. dollar (USD) remain elevated in the euro (EUR) and Mexican peso (MXN), but some short-term models have begun covering shorts in the British pound (GBP) and Canadian dollar (CAD). Models expect CTA to buy the U.S. dollar overall next week, with the strongest buying likely against the Canadian dollar (CAD) and Australian dollar (AUD).
In precious metals, medium- and long-term trend followers still hold long positions in gold, but stop-loss levels are now quite close, so there may be a risk of a pullback next week.
We ask the traders in our own trading room to produce roughly one single-market note every 2 days, covering U.S. stocks, mainland China and Hong Kong stocks, and commodities. We select the better ones for the corresponding small communities (some also include our own commentary, though we do anonymize certain details).
Those interested can subscribe as needed (only if you need it; don’t waste your money):
U.S. stocks:https://www.meridianresearch.app/home?product=us-strategies(Xingzhi)
A-shares and Hong Kong stocks:https://www.meridianresearch.app/home?product=asia-strategies(Ganglong)
Commodities:https://www.meridianresearch.app/home?product=commodity-strategies(Dixin)
As for the level of detail, we’ll probably go down to the industry level. For mainland China, we’ll try to avoid crowded trades; if we write too specifically, someone may jump in ahead of us. We can perhaps be a little more specific with U.S. stocks, but you’ll still need to think things through and fill in the gaps yourself, There are no trades to copy directly!。
The overall win rate has been pretty good lately.
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Wishing you all the best.
2025.08.14
Note: Everything in this article is for reference only and does not constitute investment advice or serve as a basis for any laws, regulations, or regulatory policies. Investors should not use or rely on this information as a basis for their decisions.