Example animation of a simple trend following program applied to U.S. equities

Introduction to Trend Following

  • A Trend Equity Primer: An introduction to trend equity, a strategy that seeks to benefit from the long-term, expected equity risk premium and the convex payoff of trend following.
  • Two Centuries of Momentum: Exploring the rich history of both relative and time-series momentum.

Understanding the Behavior

  • Decomposing Trend Equity: We decompose trend equity into a strategic allocation and an active trading strategy in effort to create better transparency around portfolio behavior.
  • How to Benchmark Trend Following: If we acknowledge that for a strategy to outperform over the long-run, it must undergo shorter periods of underperformance, using this symmetric benchmark can isolate market environments that underperformance should be expected.

Using Trend Following

Craftsmanship in Trend Following

Information on Newfound’s trend equity strategies is available here.  Specific research and educational materials are available below: