I was doing some reading about how managers approach finding ideas in the global macro space and I came up on a book (Asymmetric Returns by Alexander Ineichen) which briefly discussed some of the approaches mangers use to finding trade ideas. One of them was the feedback approach which is to play the downward trend as a bubble deflates and the snap-back during a recovery. There's been a lot of this going on lately (what with the credit crunch and equity rally, and oncoming bond crash) and I was wondering if this approach was still common at large global macro players today. I found an interview of guy who seems to use just this strategy (http://www.eurekahedge.com/news/11_july_Interview_...) which is quite interesting.
Anyhow, I was wondering if any of you guys knew what I was talking about and if you had anymore real-life examples of people doing this, as well as how viable of a strategy you think this is.