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But counterintuitively, that does not make trend following or buy-and-hold methods useless. Each strategy provides a conscious, explicit method to trade one set of risks for another.
AQR Managed Futures Fund, the biggest part of the firm's $20 billion trend following strategy, is experiencing a 19.5% daily drawdown since its peak in April 2015, according to Morningstar data.
However, trend-following techniques proved their worth for many investors in the 2000-2002 bursting of the tech bubble and in the 2007-2008 market meltdown. Trend-following is hardly a new fad.
Trend following in commodities offers true diversification—small losses most days, big gains when trends emerge. Here’s how to make it work, even with a small account.
Trend following tends to outperform when inflation is high and increasing. “When traditional markets are crashing or when inflation is increasing, you tend to get good performance,” he said.
Trend-following strategies gained ground with investors in the last few years when markets experienced noteworthy reversals and prolonged volatility. The importance of asset class diversification ...
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When it comes to trend following and/or time-series momentum research, we got ya covered! A few places to dig in: Evidence for Long-Term Trend-Following by Alpha Architect World’s Longest Trend ...
The index implements a systematic trend-following strategy that directs exposure (i) 100% to the NASDAQ-100, (ii) 50% to the NASDAQ-100 and 50% to 3 Month U.S. Treasury bills, or (iii) 100% to 3 ...