Macro Economy Trading Strategies: Backtest Analysis on a Global Scale

“If trading is like chess, then macro trading is like three-dimensional chess. It is just hard to find a great macro trader.” — Paul Tudor Jones.

Many of the world’s biggest hedge fund managers and institutional traders focus on macro economy strategies. What are macro economy trading strategies?

Macro trading strategies are investment strategies that pick their holdings through informed notions about various countries’ macroeconomic and geopolitical developments. These strategies are mostly used by hedge funds and mutual funds, as they aim to benefit from tectonic shifts in a nation’s economic policies, international trade, or interest rate regime, as well as from major political situations across the globe.