Regular readers of the blog will know that I kept track of all trades taken and the associated performance metrics covering the period July 2012 to April 2017, at which point I took a short break from the markets.
PDF copies of those records are available here.
This covered the good, the bad and the ugly of trend following. Sure, there were losing trades (lots of them!) and losing phases, but that is the nature of the markets, and typical of this type of approach to trading.
Despite a win rate of only 30%, the annualised returns equated to almost +75%, with an overall return of +470%.*
This can only be achieved by following the time-honoured principles of trading breakouts, cutting losses, letting your profits run and using good risk control.
As from 01 November, I will be starting a new record of all trades taken going forward, with all of the same metrics.
My own trading rules and parameters remain unchanged, as set out in my e-book, which was last updated to cover the changes I made in back in 2012. If it ain't broke...
As before, all trades taken will be recorded in the mentoring group's twitter feed in real-time along with details of any orders placed (entry levels, initial stop distance etc) as well as highlighting stocks which are setting up and make it onto my watchlist.
While I am confident in my edge and ability to follow my rules, trend followers do need trends to make money. And the one thing traders cannot control is the buying and selling of other market participants, and therefore how price will move.
Promises to be interesting...
*Past performance does not guarantee future results.