AllianceBernstein urges trend funds to prioritize alternative signals over illiquid markets
AB•AllianceBernstein argued that trend-following strategies should prioritize alternative signals over expanding into illiquid, specialized markets, combining traditional price-based models with macro and language-derived sentiment inputs.
1. Broader signal sets
AllianceBernstein described the approach as “trend 2.0,” using advanced tools such as deep learning to detect nonlinear patterns across price, volatility and cross-asset relationships. The firm said trend following is broadly uncorrelated to risk assets and typically gains from sustained moves, but can be whipsawed in range-bound or abruptly reversing markets.
