Hope I've found the right forum here. I'm new to trading. Been researching into Trend Following quite a bit as it seems a lot of the big players (AHL, Louis Bacon etc) seem to use it. The thing I can't get over is the simplicity. I've read a few books on the topic.
If we take for example the turtle trader strategy it's as simple as trade the 55 day breakout with 2 x ATR as a stop and add to your position every 1/2 ATR in your direction whilst risking no more than 2% in any one trade. No indicators, no fundamental analysis just essentially fishing for a trend by accepting small losses. Theory being, even if you have more losses than wins (during whipsaws) the magnitude of the wins will outweigh the losses in the long term as markets tend to trend.
I strongly agree that markets tend to trend. look at any market and you can see signs of it. I guess what I'm asking is, is there anyone on here that uses a system as simple as this? Maybe not exactly the same thing but similar as there are loads of variations of this system.
The next step for me is to create a VBA based back testing spreadsheet for this strategy with the ability to change the parameters and see how it works. I think the real key is diversification therefore trading as many non-correlated markets as you can. S&P, USD, Pork Bellies, Lumber, Wheat etc.
So anyone on here use a system similar to this who would be willing to help out a novice????
(On another note, I have also been reading up on Joe Ross's 1-2-3 & Ross Hook strategy. Anyone on here use that???????)
