Following the Trend PDF- Andreas Clenow (Diversified Managed Futures Trading) 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. Trading everything from the Nasdaq index and T-bills to currency crosses, platinum and lean hogs, there are large gains to be made regardless of the state of the economy or stock markets.
Author: Andreas F. Clenow
Free Download link: At the end of the post
Introduction-Following the Trend PDF- Andreas Clenow
This book is an excellent training manual for anyone interested in learning how to make money as a trend follower.
I know a bit about trend following because I was part of the famous Turtle experiment in the 1980s when Richard Dennis, the Prince of the Pits, showed the world that trading could be taught and that people with the right sort of training and perspective could make consistent returns that far exceeded normal investments. Ultimately, that ordinary people could learn to trade like the most successful hedge funds. I started as a 19-year-old kid and by the time I was 24 in 1987, I took home $8 million, which was my cut of the $31.5 million I earned for Richard Dennis as a trend follower.
I even wrote a book about it, Way of the Turtle. It became a bestseller because many traders wanted to know the secrets of our success and to hear about the story first-hand which had been kept secret because of confidentiality agreements and our loyalty to Richard Dennis, a great man and a trading legend.
I’d thought about writing a follow-on book a few times in the intervening years; something meatier and with more detail. My book was part-story and part-trading manual and I thought about writing a book that was all trading manual.
In Following the Trend, Andreas Clenow has written a trend-following trading manual I would be proud to put my own name on. I’m very picky too, so I don’t say this lightly.
Very few trading books are worthy of an endorsement of any sort. Too many are filled with tips and tricks that don’t stand the test of the markets, let alone the test of time. Too many are written by those who are trying to sell you something like a course, or their seminars. Too many want your money more than they want to create an excellent book.
That’s why I don’t often speak at conferences and you won’t see me endorsing many books. There is too much self-serving propaganda in the trading industry that makes its money by fleecing the unsuspecting newcomers; too many lies designed to rope in the neophytes with promises of easy profits and quick money that will never pan out.
Following the Trend is different.
It is solid, clearly written, covers all the basics, and it doesn’t promise you anything that you can’t actually get as a trend follower.
If you want to be a trend follower, first, read Reminiscences of a Stock Operator to learn from Jesse Livermore. Then, buy Jack Schwager’s Market Wizards books to learn about the great traders who have been trend followers, like Richard Dennis my trading mentor, Ed Seykota, Bill Dunn, John W. Henry, and Richard Donchian. They will get you excited about the possibilities but leave you wondering how; how can you too learn to be a trend follower?
Then, when you are ready to move from desire to reality. When you are ready to do it yourself. To make your own mark.
Read Following the Trend.
Savannah, GA U.S.A.
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. They have shown remarkable uncorrelated performance and in the great bear market of 2008 they had record gains. These traders are highly secretive about their proprietary trading algorithms and often employ top PhD’s in their research teams. Yet, it is possible to replicate their trading performance with relatively simplistic models. These traders are trend following cross asset futures managers, also known as CTAs. Many books are written about them but none explain their strategies in such detail as to enable the reader to emulate their success and create their own trend-following trading business.
Following the Trend explains why most fail by focusing on the wrong things, such as buy and sell rules, and teaches the truly important parts of trend following. Trading everything from the Nasdaq index and T-bills to currency crosses, platinum and lean hogs, there are large gains to be made regardless of the state of the economy or stock 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 at a large scale and where the real problems and opportunities lay.
Written by experienced hedge fund manager Andreas Clenow, this book provides a comprehensive insight into the strategies behind the booming trend-following futures industry from the perspective of a market participant. The strategies behind the success of this industry are explained in great detail, including complete trading rules and instructions for how to replicate the performance of successful hedge funds.
The companion website for the book, FollowingTheTrend.com, is an information rich resource for futures traders with additional information, tools and continuous updates on the state of global trend following.
Table of Contents- Following the Trend PDF- Andreas Clenow
1 Cross-Asset Trend Following with Futures 1
2 Futures Data and Tools 17
3 Constructing Diversified Futures Trading Strategies 45
4 Two Basic Trend-Following Strategies 61
5 In-Depth Analysis of Trend-Following Performance 89
6 Year By Year Review 109
7 Reverse Engineering the Competition 229
8 Tweaks and Improvements 249
9 Practicalities of Futures Trading 261
10 Final Words of Caution 269
Official Book Website 275
Research Papers, Articles and Websites 275
“Following the Trend is an absolute must read for anyone with an interest in systematic trend following whether as an investor, trader, or aspiring manager. The book is at the same time comprehensive and easy to read. As someone who has designed these types of systems, it is absolutely clear to me that Clenow writes as a knowledgeable practitioner, not an armchair theoretician. I admired Clenow’s repeatedly pointing out real life difficulties and drawbacks and his refusal to use optimization or well-chosen examples as virtually all other books of this type tend to do. In short, this is a real life presentation of the subject matter. 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.”―Jack Schwager, Author of Market Wizard and Schwager on Futures series and Market Sense and Nonsense
“Andreas F. Clenow has written a very unique book that provides a rare insight into how an actual CTA hedge fund manager trades. Backing up all his claims with hard research, he cuts right to the point and educates the reader about how the real value of trend-following futures trading is achieved and how to replicate the success of the major hedge funds. A must read and an essential part of any serious trader’s library!”
Carl Gyllenram, CEO, Ability Asset Management/Author of Trading with Crowd Psychology
“Following the Trend truly captures what it is to be a systematic manager day in and day out. It is a must read for someone with ambitions to create his own systematic fund; highly recommended for everyone who is planning to invest in or understand the intricacies of systematic strategies.”
Sanjiv Kumar, Principal, Fort LP.
“In this excellent work, Andreas has shed light on some very important and previously undocumented aspects of trend following. This book should be of great interest to Managed Futures managers and investors alike.”
Nigol Koulajian, Founder, Quest Partners, LLC
“This is a must-read for anyone involved in trading markets. The thoughtful analysis of how models work and fail will help anyone interested in trading futures. This book adds to the short list of intelligent analysis available for investors to beat the market.”
Robert Savage, CEO, Track.com
“If you want to trade professionally by managing other people’s money, then this is one of the first books I recommend that you read.”
Van K. Tharp, Ph.D., Author, Trade Your Way to Financial Freedom, Supertrader and The Definitive Guide to Position Sizing Strategies.
“Trend following is the largest sub-category of managed futures, driven by the market environment of price persistence. Andreas has taken a complicated topic and provided an insightful viewpoint.”
Mark H. Melin, Author, High-Performance Managed Futures / Editor, Opalesque Futures Intelligence
“A no- nonsense view into the real world of trend following and how it can be done.”
Kathryn M. Kaminski, PhD, CIO and Founder, Alpha K Capital
About the author
Andreas F. Clenow is a hedge fund veteran, specializing in quantitative trading strategies. Starting out as an entrepreneur in the Swedish IT business, he joined Reuters in the late 90’s where he quickly advanced to be the global head of equity and commodity quant modelling, based in Geneva.
Now based in Zurich, Switzerland, Mr. Clenow has spent the past 15 years in the hedge fund business where he has founded and managed multiple funds. Overseeing all investment management business, he is the chief investment officer of ACIES Asset Management, as well as a senior partner of the same firm. ACIES is active in hedge fund management, wealth management, private equity and structured products.
He is the author of best-selling book Following the Trend as well as the new Stocks on the Move.
You can reach him via his popular website, www.FollowingTheTrend.com.
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