FYI: Trend-following is a strategy that got a lot of attention following the financial crisis. It’s something my views have evolved on over the years. There are a lot of misconceptions out there about what the typical trend-following signals actually mean. There’s much more nuance involved than simply looking at the moving average of the price of a stock or index. If you would like to use this type of strategy you have to be very thoughtful about implementation and understand the limitations involved. This piece I wrote for Bloomberg looks at the 200-day moving average, a favorite tool for many trend-followers.
Regards,
Ted
http://awealthofcommonsense.com/2018/05/what-the-200-day-moving-average-does-does-not-tell-you/
