6 thoughts on “Trend Commandments Reviews

  1. “Trend following is about non-normality of market returns. You will never have, nor will you ever produce, returns that exhibit a normal distribution. You will never produce the mythologically consistent returns that many believe to exist. … Trend following’s alpha comes from letting winners run on the right-hand side of a fat tail and cutting losses short on the left-hand side”

    Spot on, I wish more institutional investors would realise this!

  2. Why would “Kirkus” say there are some rude surprises and losses in trend following like the 2008 financial crisis?

    I and every other TFer continue to look back on the financial crisis as trend following’s finest hour.

    Using proper stops to capture the trending profits leading into 2008 meant no losses going into 2008. And then riding the trend of 2008 led to record gains for TFers.

  3. @Al – I hope more institutional investors DON’T figure TF out. To the extent that TF is a market beating strategy, it depends on someone being on the other side of the trade and getting below market returns. Someone has to be the patsy and we can’t all be “above average” (unless we all move to Lake Wobegon)!

  4. I agree that they have no clue. Even a basic 200-350 crossover would have had you out before the shit hit the jet engine…

  5. Great book as always. I buy all your books and ever since I became a trend follower I make alot a money in my trades. I love tranding mutual funds it’s easy. Thanks Covel.

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