Systematic trend following relies on disciplined risk management and quantitative analysis to capture directional price movements across diverse global markets. Brian Proctor, Managing Director at EMC Capital Advisors and a veteran of the Turtle trading program, emphasizes that successful trading requires removing emotional subjectivity through robust, repeatable systems. The firm employs a blended approach, combining momentum and trend-following models with holding periods ranging from 15 to over 100 days. A key operational differentiator involves a dynamic risk-scaling algorithm that adjusts position sizes based on open trade equity and market volatility, effectively cushioning portfolios during trend reversals. By utilizing a "walk-forward" re-optimization process, the strategy adapts to evolving market conditions while maintaining a slight long-side bias, which historical data suggests provides superior returns. This methodology ensures consistent, reproducible performance despite the increased speed and volatility of modern electronic markets.
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