2022-11-08: We have a signal to move out of CASH and into FBSOX.... Read more Trend Following: Systematic Buy/Sell Trading System Use Leveraged ETFs to Complement Your Margin PortfolioTrend following is a strategy that takes advantage of long-term moves in various markets. The strategy assumes that trends once in place, continue to be in place for an extended period of time. Investors attempt to ride this trend for as long as possible, being both long and short during the ups and downs of the market. Traders who use this approach mainly use the market price, along with a signal generator, e.g., a moving average to determine the direction of the trend. Trend followers do not predict or forecast how long the trend will last. Their job is to simply jump on the trend and ride it. Our trend following system uses the double leveraged ETF's on the three major indices.| Portfolio Requirements | Buy/Sell Rules | Important: READ THIS | - Stock Holdings: Maximum 3
- Starting Portfolio: $200,000
- Margin Portfolio: Ability to Short
- Use of Leveraged (2X) ETFs
| - Simple Trend Following Signals
- A Few (Proprietary) Rules Added
- Always in the Market
- Built/Backtested: September 5, 2009
| - Long Term Horizon: Many Years
- Potential for Significant Drawdowns
- System Performs Worse in Non-Trending Markets
- Absolutely No Performance Guarantees
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Performance of the Trend Following System - Since November 10, 2006
Performance measured at close of each trading day only. Intra-day price swings are ignored. Past performance not representative of future returns |
| Description | Count | Avg Hold Period | Avg Return | Links | | 46% Of Stocks Were Closed At A Profit | 18 | 306.6 days | 26.9% | View Details | | 54% Of Stocks Were Closed At A Loss | 21 | 184.6 days | -32.6% | View Details | | Stocks In Current Trend Following Portfolio | 2 | -- | -- | View Details |
Total Auto Portfolio Return: -115.99%Total NASDAQ Return: 181.06%
(Period 2006-11-10 thru 2017-11-01.Assumptions Made in Calculating Trading System Returns
1. Prices used are from the close of each trading day. The next day's open price, at which you buy or sell, will differ from the previous day's close.
2. Bid-ask spreads and transaction costs are ignored.
3. Start date was November 10, 2006. Returns would have been different for other start dates.
4. It is assumed that the past is exactly like the future. We all know that isn't true. | Current Trend Following Portfolio |
Trading signals are generated based on the above buy/sell trading rules. As with any system, confirm the chart pattern before initiating new purchases. Depending on portfolio needs and market conditions, GSA may or may not take positions based on these signals. The signals are updated daily by 7:00p Eastern, to put in use the next trading day.Sorry, to prevent abuse only Paid Subscribers have access to this area. |
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