Helmuth's Trading Technique: Further Evidence and Implications for Cattle Hedging Strategies 1975-1982
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Hedging strategies can assist cattle feeders in managing price risk. Confirmation of Helmuth'S live cattle trade signal suggested it as a short· hedging device. Seven technical hedging strategies, three emphasizing the trading technique suggested by Helmuth's work, were evaluated over three subperiods within the July 1974-December 1982 period. Four previously developed technical hedging strategies. were evaluated monthly from 1975 to 1982. Findings suggest ·that the fundamentals incorporated in the Helmuth technique resulted in a trading strategy superior to the purely technical strategies. Further, this research indicates that technical hedging strategies proposed through previous research were of limited usefulness ex ante.
