Editorial Reviews. Review. “Following the Trend is an absolute must read for anyone with an Follow the Author. Andreas Clenow. + Follow. Andreas F. Clenow. ISBN: pages. January Following the Trend: Diversified Managed Futures Trading () cover. Andreas Clenow. · Rating details · ratings · 10 reviews. During bull and bear markets, there is a group of hedge funds and professional traders which.
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Following the Trend: Diversified Managed Futures Trading – Andreas F. Clenow – Google Books
Besides the common sense arguments of having lost the advantages of diversification and leverage, there’s quite a bit of actual, empiric evidence.
To ask other readers questions about Following the Trendplease sign up. If you apply a standard trend following model on stocks, you will lose. Stocks are prone to rapid vola expansion in bear markets. By analysing year by year trend following performance and attribution the reader will be able to build a deep understanding of what it is like to trade futures in large scale and where the real problems and opportunities lay.
For years, people smarter than me have been telling me to get into Python. To blindly cling to trend following as a religion, disregarding any real world evidence and attacking anyone presenting ideas that differ to the trend following mantra is not only unprofessional, it’s outright dangerous. Curve fitted, to realize past performance is unreal due to diminishing returns. Trade fewer stocks with larger positions. Yet, it is possible to replicate their trading performance with relatively simplistic models.
This book is not yet featured on Listopia. Build a ranking methodology to pick the best stocks. Daniel rated it really liked it Sep 25, Books by Andreas Clenow. Disregarding of course the probabilities of having covered that stock when it was a small cap, the many times you would have been shaken out along the way, the allocation to this stock compared to the many that did less well etc.
They’re all beta bets and you just need to get the individual event risk down to reasonable levels.
Following the Trend: Diversified Managed Futures Trading
Hardcover1 Editionpages. There are no discussion topics on this book yet. They have shown remarkable uncorrelated performance and in the great bear market of they had record gains.
During bull and bear markets, there is a group of hedge funds and professional traders which have been consistently outperforming traditional investment strategies for the past 30 odd years.
Lists with This Book. I was doing well, advancing fast follpwing the company. A massive simplification of the real world.
Counter intuitive isn’t it? Fundamental Analysis and Position Trading: Classic trend following will fail on stocks.
Following the Trend explains why most hopefuls fail by focusing on the wrong things, such as buy and sell rules, and teaches the truly important parts of trend following. Adapt your rules to reality and overlay satellite strategies where needed. Thanks for telling us about the problem.
The book is at the same time comprehensive and easy to read.
Following the Trend
Jun 28, Tadas Talaikis rated it did not like it. If you’re willing to adapt your models and do something closer to momentum trading, you’ll do just fine. It doesn’t matter whether you use breakout channels, moving averages or other indicators.
Hard work, quantitative modelling, research and pragmatism will get you to your goal. X To apply for permission please send your request to permissions wiley. In short, andrsas is a real life presentation of the subject matter.
I bet you’re wondering about the title of this article. Trend following is all about following the price. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Some models that I’ve been using for many years produce very attractive returns on single stocks.
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The fallacies are usually about mentioning stocks that went up a few thousand percent, fillowing how trend following models totally would have captured this. Trivia About Following the Tre April 15, Articles 39 Comments 57, Views. Probably the most complete book on futures trading I’ve read. These traders are trend following cross asset futures managers, also known as CTAs. Not that it’s necessarily lower, that’s not the point.
Trend Following Doesn’t Work For Stocks
I can assure you that real hedge funds are a little more sophisticated and are fully aware of the special c,enow in stocks.
In one particularly innovative chapter, Clenow creates close replications of some of the best and largest trendfollowing funds by combining his set of simple, non-optimized rules with variations in portfolio composition and volatility level.
After all, I do employ quantitative models based on trend following logic on single stocks in quite large scale myself in my business. Marcelo Menezes rated it it was amazing Nov 20, Professional trading tgend the subject of much lore and myths, and it can be difficult sometimes to tell reality from fiction.
The potential for survivorship bias in single stock strategies is massive. Religious dogma about a trading methodology is not helping anyone but system salesmen. August 12, Premium 36 Comments 14, Views. Yet, it is possible to replicate their trading performance with relatively simplistic models.