Long Term Trend Following

[barneydunn]

I'm keen to talk to anyone who has experience of running a long term trend following strategy. I would like to find out more about which instruments and why, trailing methods, etc.

 

[malaguti]

I'm keen to talk to anyone who has experience of running a long term trend following strategy. I would like to find out more about which instruments and why, trailing methods, etc.

Hi Barney, I am and have been for some time
Which instruments and why..easy, the ones that trend well and have shown history of trending well. Anything I don't like I don't bother with. I generally favour ftse 350 equities, only because I know them.

Trailing methods..I exit when the trend is over on a shorter timeframe and reenter when it resumes on that timeframe

 

[ZaBu]

Hi Barney, I am and have been for some time
Which instruments and why..easy, the ones that trend well and have shown history of trending well. Anything I don't like I don't bother with. I generally favour ftse 350 equities, only because I know them.

Trailing methods..I exit when the trend is over on a shorter timeframe and reenter when it resumes on that timeframe

Sounds so simple when you put it like that - always a good sign

Do you mind if I ask a couple of questions? I'll ask them anyway and in the hope that you don't.

As you're holding stocks for a period do you incorporate any due diligence on the fundamentals in conjunction with the TA?

What timeframes are you using? My guess would be Weekly charts with the Daily timeframes for entry/exit.

Am I also correct in assuming this is a long only approach?

 

[malaguti]

Sounds so simple when you put it like that - always a good sign

Do you mind if I ask a couple of questions? I'll ask them anyway and in the hope that you don't.

As you're holding stocks for a period do you incorporate any due diligence on the fundamentals in conjunction with the TA?

What timeframes are you using? My guess would be Weekly charts with the Daily timeframes for entry/exit.

Am I also correct in assuming this is a long only approach?

It is indeed very simple. I couldn't give a rat's **** for fundamentals mate. If I'm in an uptrend what is the earnings per share or liquidity ratio going to do? Stop me me from entering an established trend...don't think so. Relative strength is a factor only for me
Timeframe might be weekly, whatever it takes to view the underlying trend better. Some are just as easy on daily. Gann used 3 day charts which seems like an idea, but I'm good with weekly as a starting point.
I also use P&F to eliminate all the noise and that is non-time based so don't mean to be cryptic but there isn't necessarily a one to one relationship

Long only, of course not but any shorts are held for a much shorter time as I'd be spread betting, and of course you'd be going against the trend of the market as a whole.
Hope this helps

 

[ZaBu]

It is indeed very simple. I couldn't give a rat's **** for fundamentals mate. If I'm in an uptrend what is the earnings per share or liquidity ratio going to do? Stop me me from entering an established trend...don't think so. Relative strength is a factor only for me
Timeframe might be weekly, whatever it takes to view the underlying trend better. Some are just as easy on daily. Gann used 3 day charts which seems like an idea, but I'm good with weekly as a starting point.
I also use P&F to eliminate all the noise and that is non-time based so don't mean to be cryptic but there isn't necessarily a one to one relationship

Long only, of course not but any shorts are held for a much shorter time as I'd be spread betting, and of course you'd be going against the trend of the market as a whole.
Hope this helps

It definitely helps - very clear. Thank you.

 

[meanreversion]

To the OP, I'd highly recommend "Way of the Turtle" by Curtis Faith, a detailed insight into a real world trend following approach. I've been trend trading for a few years now, it's certainly not the Holy Grail ... a quick glance at CTA returns this year and last will tell you that. However, it's a useful strategy to have and will make money when your stocks are losing.

 

[amnonco]

I recommend Trend Following by Michael Covel .
a very thorough read about trend following.

the turtle method "as is" doesn't work. it needs a few teaks.

 

[NVP]

I recommend Trend Following by Michael Covel .
a very thorough read about trend following.

the turtle method "as is" doesn't work. it needs a few teaks.

agreed Covell is a good foundation and He will introduce you to all the greats that he leveraged all his knowledge and reputation off of ..........