“Following the Trend is an absolute must read for anyone with an interest in systematic trend following whether as an investor, trader, or aspiring manager. The book is at the same time comprehensive and easy to read. As someone who has designed these types of systems, it is absolutely clear to me that Clenow writes as a knowledgeable practitioner, not an armchair theoretician. I admired Clenow’s repeatedly pointing out real life difficulties and drawbacks and his refusal to use optimization or well-chosen examples as virtually all other books of this type tend to do. In short, this is a real life presentation of the subject matter. In one particularly innovative chapter, Clenow creates close replications of some of the best and largest trend-following funds by combining his set of simple, non-optimized rules with variations in portfolio composition and volatility level.”

— Jack Schwager, Author of the Market Wizards and Schwager on Futures series, and Market Sense and Nonsense

Praise for the first edition

“Andreas F. Clenow has written a very unique book that provides a rare insight into how an actual CTA hedge fund manager trades. Backing up all his claims with hard research, he cuts right to the point and educates the reader about how the real value of trend-following futures trading is achieved and how to replicate the success of the major hedge funds. A must read and an essential part of any serious trader’s library!”

—Carl Gyllenram, CEO, Ability Asset Management and Author of the Trading with Crowd Psychology

“Following the Trend truly captures what it is to be a systematic manager day in and day out. It is a must read for someone with ambitions to create his own systematic fund; highly recommended for everyone who is planning to invest in or understand the intricacies of systematic strategies.”

—Sanjiv Kumar, Principal, Fort LP.

“In this excellent work, Andreas has shed light on some very important and previously undocumented aspects of trend following. This book should be of great interest to Managed Futures managers and investors alike.”

—Nigol Koulajian, Founder, Quest Partners, LLC

“This is a must-read for anyone involved in trading markets. The thoughtful analysis of how models work and fail will help anyone interested in trading futures. This book adds to the short list of intelligent analysis available for investors to beat the market.”

—Robert Savage, CEO, Track.com

“If you want to trade professionally by managing other people’s money, then this is one of the first books I recommend that you read.”

— Van K. Tharp, Ph.D., Author of the Trade Your Way to Financial Freedom, Super Trader, and The Definitive Guide to Position Sizing Strategies.

“Trend following is the largest sub-category of managed futures, driven by the market environment of price persistence. Andreas has taken a complicated topic and provided an insightful viewpoint.”

— Mark H. Melin, Author of the High-Performance Managed Futures and Editor of Opalesque Futures Intelligence

“A no- nonsense view into the real world of trend following and how it can be done.”

—Kathryn M. Kaminski, PhD, CIO and Founder, Alpha K Capital

An up-to-date and practical roadmap for diversified futures trading using CTA fund strategies

In the newly revised second edition of Following the Trend: Diversified Managed Futures Trading, renowned hedge fund founder and asset manager Andreas F. Clenow presents a systematic asset management methodology in a way that allows readers to emulate the success of CTA industry professionals. In the book, you’ll find performance and attribution details for every year between 2002 and 2021 and detailed explanations of how the markets, industry, and strategy have evolved between the publication of the first edition and today.

The author also offers:

• Detailed discussions of whether CTA hedge funds continue to show high internal correlation and exhibit homogeneous behaviour
• The impact of low and negative interest rate environments, massive inflows into equity markets, and the rise of quant trading firms
• Explorations of the combination of different types of trading models to enhance performance, complete with rulesets and fulsome analyses

A ground-breaking and thoroughly incisive examination of the commodity trading advisor industry, Following the Trend: Diversified Managed Futures Trading is an essential volume for sophisticated retail traders, day traders, private investors, investment managers, portfolio managers, and institutional investors.