Trend following research papers are a useful resource for taking a closer look at trend following trading strategies. And as you might have guessed by the name of this website, we’re always looking for smarter ways to adjust our trend following. So let’s dig in.

The great thing about trend following, is that it’s incredibly quantitative. There are reams of historical data to backtest in order to determine the validity of trend following strategies, and what chance they have of out-performing. Now let me show you some of the best trend following research on the internet.

The Best Trend Following Research Papers:

  • Trend Following: How great traders make millions of dollars in up or down markets, by Michael Covel is one of the definitive white papers on trend following trading. It provides ample evidence into the trend trading school of thought, and should serve as a great resource for anyone who wants to see compelling data on some of the world’s best trend following traders.
  • Does Trend Following Work on Stocks? This is a particularly interesting research paper for, because we apply trend following techniques to the stock market. I don’t want to spoil this research for you, but suffice it to say the academics support our forays into the markets using a modified trend following approach for stocks.
  • A Century of Evidence on Trend Following is another worthy research paper for trend following traders. This white paper is published by AQR Capital Management, a prominent trend following firm that has a strong track record and a plethora of expertise in the trend following arena. Read this research paper to see how trend following methods have worked as far back as 1903. This approach to the stock market isn’t an overnight phenomenon.
  • Two Centuries of Trend Following is the final academic paper for us to review today. And frankly, if one century of trend following evidence was good, then two must be even better. This research looks at trend following across four asset classes (stock indices, currencies, commodities and bonds) going back as far as 1800. The authors look at short and long term trends over a variety of different time frame. While there have been some fluctuations over the decades, trend following as a whole has stood the test of time.

Now if you’re willing to keep digging, you can be rest assured there’s much more trend following   research available. But rather than bite off more than you can chew, I’d suggest you familiarize yourself with the conclusions in the studies above first.

And then…

If you want to take it a step further, you’re likely best served by learning more about our premium trend following service. It’s everything you need to put your trend following knowledge into action in an intelligent and rational way. Why not take a closer look?