Asset management, Commodity price, Commodity risk, Hedging, Market trends, Risk management, Trading, Trend following

Trading COMEX Copper with I-System technology

The price of Copper has been trending significantly higher since the start of 2016. However, this trend has not been easy to trade using traditional trend following strategies.

HG_PriceCurveFm2015_2018_Framed

This last event (D) was quite painful for most – if not all – trend followers, as the following chart illustrates:  Continue reading

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Commodity price, Hedging, Market trends, Trading, Trend following

On effective trend following strategies

A question frequently arises among trend followers on the nature of effective trading strategies. The old school of thought holds that strategies should be simple, ultra robust and effective across markets and time frames. I happen to disagree so here I share a hard-won piece of knowledge that should help settle this question. Continue reading

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Asset management, Commodity price, Commodity risk, Hedging, Risk management, Trend following

Lessons in trend following: how we traded sugar

Sugar prices have soared on the CSCE (Coffee, Sugar and Cocoa exchange) from just over $0.10 per pound in August 2015 to over $0.23 at present – a fairly sharp jump by any standard, particularly after several years of continuously falling prices. I trade sugar using our trend-following model and to channel my inner Donald Trump – we’ve done tremendously well, generating a respectable grosss annualized return of nearly 10% per annum over a 5-year period. Now, the main reason I find this remarkable is that I know next to nothing about the fundamental economics of the sugar market. I know it goes into biscuits and beverages, that it comes from sugar cane or sugar beets, but that’s about it. Continue reading

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