UPDATE: The trend following course and system is available now!
Attempting to analyse the numerous factors that affect a stock price, everything from P/E ratios, to market expectations, to the analysis of cash flow statements and insider transactions is notoriously difficult, if not impossible.
Trend followers thus ignore the fundamentals and concentrate on one thing only; price. The price tells us everything we need to know about a company or a security. More importantly, it tells us all we need to do…
Trend Following Secrets
Many confuse trend following with technical analysis, but trend following is not at all like technical analysis. True, trend following is only concerned with price, but trend following does not seek to predict markets using fancy indicators. Trend following intends to simply ride price moves in the simplest way possible.
Some naysayers believe trend following is negative or evil because it helps contribute to speculative bubbles and crashes.
Again, this is not really true, since bubbles and crashes have been a feature of markets since well before the first trend following strategy was created.
Finally, there are some who dismiss trend following because it is simply so easy, it cannot possibly work.
This statement is usually made by those who have spent thousands of dollars and hours attempting to predict stock moves from the tedious study of financial statements, balance sheets and cash flow forecasts. Can you think of anything more tiresome than that?
As we know, companies dress up their accounts in any way they can, and there are so many factors when it comes to analysing company value, it is a near futile task.
Does trend following work on stocks?
There has been plenty of debate as to whether trend following works on stocks. Some argue that trend following strategies cannot possibly work on stocks because effective trend following depends on the diversification obtained from different baskets of futures.
Those of this view, suggest that trend following strategies for stocks are better classed as momentum strategies.
The truth is, whether you call it momentum or trend following, big trends exist in the stock market, just like any other asset class. And exploiting those trends can be hugely profitable. Just ask David Harding, Michael Covel, or Jon Boorman…
It’s for this reason that I decided to come up with a complete trend following trading system for stocks. To put the matter to bed once and for all…
This strategy is not just about the right buy and sell rules, it’s about the whole process of portfolio management, trading signals, and following the right methods for gaining an edge.
Fully Disclosed Trading System
Yes, I have spent the last couple of months or so working on this complete trend following system for US stocks and it is near completion. (The system has been run on data for US markets, though you will likely be able to use it on other developed stock markets too).
A lot of time has been put into testing different rules and I am now very pleased with the system’s out-of-sample results, (+45% in 2013 for example), and also the way it has withstood various tests of robustness.Of course, this is not a get-rich-quick scheme but a strategy that shows impressive performance over the last 30 years of back-testing.
This is a strategy almost identical to the one I personally trade (and I’m sure similar to that of many other professional trend followers too).
So where is it?
The bad news is that the system is not free. I would be foolish to put so much time into something and give it away for nothing.
The good news, however, is that I will be offering it to all my subscribers at a HUGE discount when it is first released.
So please watch the video below and keep your eye out for an email from me within the next couple of weeks. If you are not subscribed to this blog, don’t worry there is still time, simply sign up below and you’ll also receive the deal.
UPDATE: The system is available now, please check it out here.
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Tags: Trend Following