Adaptive Trading and Longevity

Ryan Garvey

Chair of the Department of Finance & Professor of Finance, Palumbo Donahue School of Business


We examine the relationship between trader longevity and trader behavior change in U.S. equity markets. Traders who change how much, what, when, and where they trade often remain active for a longer period of time. Although longer (shorter) duration traders tend to perform better (worse), changes in trading behavior rather than performance is the key determinant of longevity. Overall, our findings suggest that securities traders who are able to adapt and alter how they trade in light of continually changing market conditions are more successful.

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