Which Asset Classes Should You Trade

AAA Quants
11 min readNov 30, 2021
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I often get asked by people — — “hey Tom, which asset classes should I trade?”. So in order to answer this for quite a lot of you, I’ve written this article, which I will go through the pros and cons of the asset classes that are accessible to most beginners. On the other hand, if you have been in this game for a while you probably don’t need this article. But if you’re new to this, I hope you will get a good overview of the asset classes that you might be able to trade.

The scope

We only talk about exchange traded asset classes here. There are of course other asset classes such as physical gold or property but we don’t really want to talk about them here.

First, the asset classes being considered here should be relatively liquid, in other words, there should be sufficient trading volume. If the trading volume is low, we may never get the price that’s shown in our data and running a quantitative analysis is practically worthless.

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Within each asset class there are different levels of liquidity, and, in relative terms, some of the assets can be more liquid than others.



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