Recent struggles in forex-specific trading programs have favored the short-term manager who can take quick profits out of volatile markets without relying on the reemergence of long-term trends. When we last looked at currency-specific commodity trading advisors, we saw an explosion of new programs that were targeting short-term strategies. Numerous advisors noted that there had been a fundamental shift in the markets that produced an environment that was better suited for short-term strategies. If anything, 'that has continued though the sector has underper-formed of late. The long-term bear market for the dollar has stalled and while many traders believe the dollar is due for a trend reversal, they are doubtful that will be a boon for long-term trend followers. They noted increased volatility and the fact that many of the long-term strategies struggled despite a sustained bear move in the dollar. "For some reason long-term guys did not take advantage of the large move in the dollar," says Marek Chelkowski, a CTA who uses a mix of technicals and fundamentals in his short-term strategy.
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