Wisdom State of Trend Following – JULY 2020
BBB STRATEGY: +.66% YTD +6.4% TMA STRATEGY: -.58% YTD +3.85% BREAKOUT STRATEGY: +.29% YTD + 8.5% COMBINED STRATEGY: +1.23% YTD +18.5% [vc_separator type=’transparent’ position=’center’ color=” thickness=’2px’ up=’0px’ down=’10px’] The State of Trend Following report features 3 medium to long term trend following strategies. Each strategy trades the same portfolio of 38 diversified markets (see below). […]
Wisdom State of Trend Following – JUNE 2020
BBB STRATEGY: -.73% – YTD +5.7% TMA STRATEGY: -1.40% YTD + 4.9% BREAKOUT STRATEGY: -.97% YTD + 8.2% COMBINED STRATEGY: -3% YTD +18.33% [vc_separator type=’transparent’ position=’center’ color=” thickness=’2px’ up=’0px’ down=’10px’] The new State of Trend Following report features 3 medium to long term trend following strategies that we manage in client accounts. Each strategy trades the […]
Is Your Trend Following Portfolio Diversified Enough?
Adopting a trend following approach may only be the first step toward achieving robust portfolio diversification. As most experienced investors know, the best market analysis can’t project far beyond the present. The same can be said of fund performance statistics. Both can tell you about what’s happening now (with a market or fund), how they […]
A SHORT HISTORY OF TREND-FOLLOWING TRADING
Have you ever wondered how certain trend traders have managed to build such incredible fortunes? You’ve heard the stories. Take Ed Seykota, for example. He turned an initial $12,000 investment into $15 million over twelve years. And then there’s Michael Marcus, who turned $30,000 into $80 million in less than twenty years. Then there is […]
TREND FOLLOWING TRADING
Let’s face it: nobody likes being uncomfortable. But sometimes you have to be willing to experience a certain amount of discomfort in order to reap the greatest reward. Trend-following trading is based on this principle. Let’s face it: nobody likes being uncomfortable. But sometimes you have to be willing to experience a certain amount of […]
Trend Following with Mini and Micro Contracts
Recently the CME brought to market the new Micro E-Mini Futures. The addition of these products make trend following trading with mini and micro contracts a great option for the small account trader. Trend Following strategies offer diversification and outsized returns for the disciplined trader. The long term trend following strategy buys into a market […]
Trend Following Outlook for 2018
As we begin a new year and reflect on 2017’s performance I can’t help but wonder if this will be the year for commodity trend followers. I know I probably sound like a broken record preaching the trend following strategy and encouraging investors to stay the course. Trust me, I know it isn’t easy after […]
Trend Following — 140 Years of Data Supports its Value
AQR updates it paper on Trend Following performance over the last century. Despite the strategy experiencing poor recent performance, it brings tremendous value to stock and bond portfolios over time by 1) increasing returns and 2) lowering volatility and max loss. A win-win-win in my book. Trend Following ain’t perfect. No investment strategy is, but […]
Timeless Market Wisdom: The Origins of Trend Following
“ Cut short your losses, let your profits run on. This principle above is the central tenet of trend following, a successful strategy for trading systems and CTAs alike. Digging through history, this maxim can be traced back all the way to David Ricardo, an eighteenth century British economist and trader, who retired a millionaire […]
Crude Oil and Trend Following
Crude oil has been in the news a lot recently. Just last week, after the OPEC meeting, its price declined by over 10%. With a lot of volatility, we wanted to test how a trend following strategy would have performed on the futures contract in recent history. Here is a quick post showing our benchmark […]
