It feels like everyone is talking about trend following – and so they should. Against one of the most challenging economic backdrops in several decades, trend following managers largely managed to deliver substantial profits to their investors in 2022. Unsurprisingly, this has generated a rising tide of interest in the strategy from a new cohort of investors – many of whom will have started their careers since the Great Financial Crisis nearly 15 years ago. In our latest paper we seek to explore the possible outlook for trend following using Monte-Carlo simulations.
