#trend-following

Part I and Part II of our trend-following series illustrated the value of diversification and how it can be used to reduce portfolio drawdowns. The challenge is finding uncorrelated instruments as an Indian-domiciled trader. Irrespective of how you slice it, Indian equity indices are correlated to each other, we only have a handful of commodity […]

A problem while using a single instrument for trend-following is that it tends to go through multiple years of flat returns after a drawdown.

The simplest construction of a trend-following strategy is to take the moving average of closing prices over a certain period of time and…