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QuantSchool: Strategy types: short, mid, and long term

Time Horizon Classification

Investment strategies are typically categorized by their holding periods and corresponding objectives:

1. Short-Term Strategies (Days to Weeks)

Characteristics

• Holding period: 1 day to 3 months
• Focus: Capitalizing on immediate price movements
• Typical instruments: Liquid stocks, options, futures

QuantWave Application

• High-frequency pattern recognition
• Intraday momentum signals
• News-driven event plays

2. Medium-Term Strategies (Months to 1 Year)

Characteristics

• Holding period: 3-12 months
• Focus: Sector rotations and thematic trends
• Typical instruments: ETFs, sector stocks

QuantWave Application

• Wave cycle analysis
• Seasonal pattern identification
• Mean-reversion setups

3. Long-Term Strategies (1+ Years)

Characteristics

• Holding period: 1-5+ years
• Focus: Fundamental growth and compounding
• Typical instruments: Core portfolio holdings

QuantWave Application

• Macro trend analysis
• Structural support/resistance mapping
• Multi-year fractal patterns

Strategy Comparison

Metric	Short-Term	Medium-Term	Long-Term
Time Commitment	High (daily)	Moderate (weekly)	Low (quarterly)
Turnover	Very High	Moderate	Low
Risk Profile	Higher	Medium	Lower
Return Potential	Variable	Stable	Compounding

Choosing Your Approach

• Capital Base: Short-term requires more capital for scaling
• Personality Fit: Active vs. passive temperament
• Resource Availability: Time for research and monitoring
• Market Conditions: Certain strategies work better in specific environments

Implementation Framework

1. Define primary strategy time horizon
2. Select complementary secondary approaches
3. Establish separate capital allocations
4. Create distinct performance benchmarks
5. Implement appropriate risk controls

Successful investors typically combine elements from all three time horizons, weighted according to their goals, resources and risk tolerance. QuantWave provides analytical tools tailored for each strategy type, enabling informed decision-making across timeframes.