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

Introduction to Trend Following

The Details of Trend Following

  • Diversifying the What, How, and When of Trend Following: How investors can think about introducing greater diversification across the three axes of what, how, and when in effort to build a more robust tactical solution.
  • The Importance of Diversification in Trend Following: Diversification is a key ingredient to a successful trend following program.  We believe the increased internal diversification allows not only for a higher probability of success, but also increases the degrees of freedom with which we can manage the strategy.
  • Momentum versus Moving Averages: Demonstrating how technical signals, such as moving average systems, are mathematically linked to time-series momentum­.
  • 199 Drawdowns, 1 Model: A white paper exploring the out-of-sample application of Newfound's trend-following on 149 ETFs and 199 large (>25%) drawdowns.