Naive trend implementation

Trend following can really be simple to implement even for a retail trader/investor

The system:

• Universe of just 8 tickers:

  

• With naive trend following logic, without ATR or complex vol adjustment

  

• And position sizing of 1% per trade and trailing DC 16 stop loss

The result?

Before you say this is not very impresive, remember that:

• This thing was UP during 2008 AND 2020 covid crash!

• This does not account for all the free cash you had, that could have been generating some % of risk free return in short term bills, or could have been repurposed for another strategy that requires cash

• There’s much room to improve this strategy (ansamble, much wider universe, etc…)

Happy backtesting!