Positioning extremes: do you fade the crowd?

When everyone is positioned one way, the fuel for the move is spent and the reversal becomes likely — in theory. Crowded trades can stay crowded for months, which is why positioning is a slow, dangerous signal.

How do you use it?

• the positioning data you watch
• the conditions that make extremes tradable for you
• the crowded trade that kept working against you

The risk-on risk-off guide covers the mood that drives crowding.