Five new strategies have been added. Three new related research paper have been included into existing strategy reviews and three new short free blog posts have been published during last few weeks. Plus, four trading strategies have been backtested in QuantConnect in the previous two weeks.
The global investment environment is going through a period of meaningful structural change. The dominance of the U.S. dollar is increasingly being questioned, geopolitical tensions are rising, and macroeconomic uncertainty remains elevated. Together, these forces challenge the post-Global Financial Crisis environment in which U.S. equities consistently outperformed most international markets. As a result, investors may be approaching a turning point where relative returns between U.S. equities and international markets—especially Emerging Markets (EM)—begin to shift.
This research focuses on a practical portfolio allocation question: when should investors increase or reduce exposure to Emerging Market equities relative to U.S. equities? Building on our earlier work analyzing the EAFE-USA spread, we extend the framework to Emerging Markets. Our hypothesis is that the relative performance between U.S. and EM equities is not random. Instead, it shows patterns driven by momentum and broader market trends. These patterns likely reflect persistent capital flows and the gradual way macroeconomic information spreads across global markets.
Rather than relying on static asset allocation approaches, we develop a dynamic allocation model that uses momentum and trend signals to generate practical timing signals between U.S. and EM equities. Emerging Markets are particularly interesting in this context because they tend to experience stronger regime shifts and larger performance cycles than developed international markets.
We’ve already analysed tens of thousands of financial research papers and identified more than 700 attractive trading systems together with hundreds of related academic papers.
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