Why follow trends?
Following Trends is a strategy that captures market trends without predicting the future — it simply goes with the flow. But why do you believe that? Because these giants don't just talk; They have age. They manage billions in assets for institutional investors, pension funds, and high-net-worth individuals. Their returns are not the result of luck: they are the result of crisis-tested systems like the 1987 crash, the dot-com bubble of 2000, the Great Recession of 2008, and even the post-pandemic vibe of 2020-2022. According to studies by Société Générale and AQR Capital, trend-following funds have shown average annualized returns of 10 to 15% over the past 30 years, outperforming indices such as the S&P 500 in periods of turmoil. Now, let's get to the masters — get ready to be inspired!
1. Ed Seykota: The Pioneer of Emotional Discipline and Legendary Returns
Ed Seykota is often called the "father of modern trend following." He began in the 1970s to develop computerized systems to capture trends in commodities. As a mentor to the famous Turtle Traders (an experiment that turned new traders into millionaires), Seykota emphasizes operational discipline — one of the pillars of our Profitline.
Historic Returns: Impressive! From 1972 to 1988, his system generated annualized returns of approximately 250% on a $5,000 initial bill, turning it into millions (as reported in books such as Jack Schwager's "Market Wizards"). Throughout his career, average annual returns have fluctuated around 20% to 30%, with losses controlled thanks to rigorous risk management. In 2008, during a financial crisis, its systems captured downtrends, generating profits from the market collapse.
Lesson for you: Seykota proves that following trends overcomes emotional bias. "Cut the losses and let the profits flow" – a mantra that Profitline automates for beginner traders.
2. Richard Dennis: The Creator of Turtle Traders and Master of the Consistent Method
Richard Dennis, nicknamed the "Prince of the Abyss" (due to his success on the Chicago trading floors), is a legend who bet that trading could be taught. In 1983, he trained a group of "Turtles" in Trend Following, proving that a consistent method can be replicated.
Value under management (AUM): Dennis managed funds that peaked at $200 million in the 1980s, but his legacy extends to companies influenced by him, totaling billions indirectly.
Historical Returns: Turtles generated cumulative returns of over 80% per year on average during the experiment (1984-1988), with some years reaching 100-200%. Dennis personally turned $400 into $100 million in a decade. Even after retirement, his approach influenced funds with long-term annualized returns of 15-25%, according to CTA Intelligence's analysis.
Imagine applying this: Profitline incorporates rules similar to those of the Tortoise, a consistent method that anyone can follow, without years of training.
