ABOUT TREND FOLLOWING
Trend Following techniques are very simple. The strategy has been proven to consistently make money in the markets. Every trader needs a trend to make money, trend following seeks to capture the majority of a trend (up or down), for profit. A buy or sell order initiates the position at a predetermined price using technical analysis and the trend is simply followed using trailing stops and liquidated upon trend reversal. This technique has been proven to work for over 800 years (see ‘Trend Following with Managed Futures ‘ by Greyserman & Kaminski) and is a combination of ideas heavily based on the principals of market legends such as William O’Neil (CANSLIM), Jesse Livermoore, Nicolas Darvis, Ed Seykota, Richard Dennis (Turltle methodology) and more recently Mark Minervini, Gil Morales and Michael Covel. In a ‘Bear’ (down trend) market, the strategy is reversed to follow and profit from down trends. If the trend reverses, positions are automatically liquidated with a small loss, break even or profit. The primary aim is to stay with a trend as long as possible whilst managing risk and keeping losses small. It may take numerous small losses before a winning trade materializes (The aim is to make money, not be right on every trade). Risk management is critical, every trade has an associated stop loss order to exist the trade quickly if the trend does not go in the desired direction.
ABOUT TREND FOLLOWING CAPITAL...
Trend Following Capital (TFC) manages a private investment fund.
The fund aims to focus on growth stocks.
The fund is almost never fully invested, and only invests predefined portions of assets when profit potential targets are highlighted.
Risk management is at the heart of the TFC strategy.
If the main market averages (DOW, S&P, FTSE) indicate a downturn in overall conditions, TFC will move to a near cash only position. Reducing the potential of a draw down that could been seen in classic 'buy and hold' fund strategies.
TFC invests in high growth, innovative reputable UK and US companies, all of which are listed on the main regulated exchanges.
TFC also has positions in commodities and cryptocurrencies.
Cut short your losses; let your profits run on.
- David Ricardo, 1772 - 1823