Emil van Essen has been involved in the managed futures world for 25 years. He has run successful brokerage operations, hedging programs, commodity trading advisors and commodity pools. Van Essen has a passion for finding new sources of alpha. Perhaps it is because he came to the world of managed futures late in the game when the trend following space was crowded.
For years we in the financial media business have split types of market analysis and traders into two large camps: fundamental and technical. Fundamental traders would look at basic meat and potato supply and demand fundamentals and perhaps some proprietary insights to come up with their market outlook, while technical traders would look at market charts to determine patterns and momentum based on price data.
Merriam-Webster defines data as, “Factual information (such as measurements or statistics) used as a basis for reasoning, discussion or calculation.” Traders use data in all forms to construct the basis for their trading decisions. In the past, this involved earnings reports and sales statistics for equity traders and perhaps weather reports and supply/demand calculations for commodity traders.
After seven years of a consistent flow of new regulations, the trading world is not looking for more regulatory change, but a review of what is working and relief from what has gone too far — basically, a smarter approach.