Do funds distort price movements? by B. Wade Brorsen and Scott H. Irwin
ARTICLE SYNOPSIS ...Do funds distort price movements?
by B. Wade Brorsen and Scott H. Irwin
The rapid rise of large-scale technical trading by futures funds has led to a concern that such trading
could distort futures price movements. Our previous research shows that quite different technical trading
systems do, in fact, signal trades on the same day a significant amount of the time. Whether this
similarity is actually translated into price-distorting trading depends on the total size of trading and the
particular trading techniques of futures fund trading advisors.
We surveyed the 32 largest public futures fun...
AUTHOR: B. Wade Brorsen and Scott H. IrwinDATE: OCT 1989