Why You Shouldn't Invest in Trend Following

The second reason why you wouldn't necessarily invest in trend following is on a stand-alone basis actually it's not back compelling an investment. If you really want good solid sharp high sharp ratio returns then you're better off probably with a negative skewed strategy that has a high sharp ratio but can have ugly sharp drawdowns. It's not guaranteed that you'll make money in a market crisis with trend following whereas that is guaranteed with a tailhead strategy although as a pure tailhead strategy will cost you money. The other thing about trendFollowing is on an individual asset basis it really is rubbish okay and only when you diversify across a number of different instruments do you get the benefit.

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