October 21, 2014

Stock Markets Turmoil: What impact on trend following?

The Wisdom State of Trend Following report — currently standing at +17.48% YTD — has shown that 2014 is a “come-back” year for trend following.

Could this be the beginning of a real turning point for the strategy?

A New Market Environment Beneficial to Trend Following?

This month of October seems to bring back flavours of the last crash. Remember 2008: the best year of the decade for trend following.

With stock markets down and jittery, volatilities expanding, we’re seeing some very interesting moves in commodities, bonds and other markets.

This month of October seems to bring back flavours of the last crash. Remember 2008: the best year of the decade for trend following.

The moves are still moderate, but with stocks having pretty much rallied «straight up» since 2009, there is a lot more room to the downside.

Trend following might once again benefit from these changing market conditions. As a diversifier, or a pure way to participate in these market conditions, it might not be too late to get in with the strategy.

LTX Trend Following System

Whereas the State of Trend Following is a good indicator of the strategy’s general performance, it was primarily designed as an index, not as a practical trading system.

On the other hand, our LTX proprietary system has been designed as a “ready-to-trade” option for global diversified trend following — accessible to smaller portfolios and trading accounts (starting at $30K).

We recently updated and published the performance for LTX in 2014. The strong positive returns (up to 100%) for all variations of the system show that LTX is well equipped to capture trends in global markets.

LTX Performance in 2014:


LTX-6: +104.2% (Max DD: 8.3%)


LTX-8: +76.6% (Max DD: 5.8%)


LTX-12: +86.7% (Max DD: 6.3%)


LTX-16: +29.0% (Max DD: 5.4%)

System Starting Capital Profit Return Max DD Longest DD Trades
LTX-6 $30K $31.3K 104.2% 8.3% 3.5 18
LTX-8 $50K $38.3K 76.6% 5.8% 3.2 25
LTX-12 $80K $69.3K 86.7% 6.3% 1.3 41
LTX-16 $100K $29.0K 29.0% 5.4% 5.5 54
Avg: $65K $42.0K 74.1% 6.5% 3.4 35

Check LTX’s full performance for the last 10 years on our website.

Start Trend Trading with LTX

We see LTX as our most efficient option to implement a systematic trend following strategy, that can leverage our global markets offering — one of the widest in the industry.

LTX can be customized with multiple options (portfolio, leverage, long/short bias, etc.) based on your requirements. We can provide a custom simulation report based on your preferred options.

If you’d like to discuss how to get started with LTX, simply give us a call or send us an email.



Risk Disclosures

Commodity Trading involves high risks and you can lose a significant amount of money. Commodity trading is not suitable for many investors. Any performance results listed in all marketing materials represents simulated computer results over past historical data, and not the results of an actual account. All opinions expressed anywhere on this website are only opinions of the author. The information contained here was gathered from sources deemed reliable, however, no claim is made as to its accuracy or content. Different testing platforms can produce slightly different results. Our systems are only recommended for well capitalized and experienced futures traders.

CFTC-required risk disclosure for hypothetical results

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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