Kinetic Trader

Stock Trend Trading Systems

There are lots of trend trading systems but I thought I would mention that if you have retirement accounts and don’t really want to deal with day to day trading, or feel that you underperform the market when trying to catch the short term moves, then you should take a look at a long-term trend following system like Mebane Faber’s.

He is a professional money manager than offers an informative website and is well known for a research paper(IT IS FREE) that he wrote regarding using a simple 10 month moving average for timing the buys and sells of specific asset classes. Visit this page on his website where you can read his research paper, it is a simple system that will help you avoid large bear markets with a pretty hands off investing approach.

After you read that report you can visit Dshort.com where the author tested the results of Mebane’s 10month moving average vs. using a 12 month moving average, which showed better results.

It is a great solution for people who want to be a little more proactive with their investments but dont want to trade. The goal with these timing methods is to catch the majority of moves up in the market without being hit in large downturns.

Also, if you want a better understanding on asset allocation then I would recommend reading Mebane Faber well regarded book “The Ivy Portfolio” about asset allocation and investing like the top endowments like Yale University.

- www.kinetictrader.com