A Decade of Trend Following

Last year was not a good year for trend following, with many commenting that the performance for the strategy has been declining over the last few years. We decided to look at the performance of the Wisdom State of Trend Following index on a long timeframe, to let the results speak over the long term, rather than focusing on recent performance.

Despite the recent under-performance, our trend following index still managed to return a healthy 13% annualized over the last 10 years (+257% total return). Yes, this came with drawdowns — including last year nearing previous max levels — but this is a typical characteristic of trend following strategies: accepting the drawdowns to benefit from the performance the system generates.

[…] Read on for more info and performance results http://www.wisdomtrading.com/decade-trend-following/

Originally published at www.wisdomtrading.com on January 13, 2017.