Short-Term CTA
Holds for a few days to two weeks — higher turnover, tighter capacity, lower correlation to slow trend, and a different execution problem.
Definition
Short-Term CTA refers to higher turnover, tighter capacity, lower correlation to slow trend, and a different execution problem. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When higher turnover, tighter capacity, lower correlation to slow trend, and a different execution problem shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what short-term cta is saying. If higher turnover, tighter capacity, lower correlation to slow trend, and a different execution problem moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Short-Term CTA: what would falsify the current reading in the next window?