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. For the past 40 or so years, during bull and bear markets, there has been a group of hedge funds and professional traders which have consistently outperformed traditional investment strategies. They have shown remarkable uncorrelated performance and in the great bear market of 2008 they had record gains. These traders are highly secretive about their proprietary trading algorithms and often employ top PhDs in their research teams. Yet, it is possible to replicate their trading performance with relatively simple models. These traders are trend-following cross-asset futures managers, also known simply as CTAs. Many books are written about them. No other explains their strategies in such detail as to enable the reader to emulate their success and create their own trend-following trading business. Following the Trend explains why most fail by focusing on the wrong things, such as buy and sell rules, and teaches the truly important parts of trend following. Trading everything from the Nasdaq index and T-bills to currency crosses, platinum and lean hogs, there are large gains to be made regardless of the state of the economy or stock markets. By analysing year-by-year trend-following performance and attribution the reader will be able to build a deep understanding of what it is like to trade futures at a large scale and where the real problems and opportunities lie. This second edition of the global best seller tells the story of what happened to the strategy and industry in the ten years since the first publication with an updated year-by-year review explaining how trend following coped with changing market environments. Further adding to the trader’s toolbox, you will be introduced to valuable and complementary futures trading styles, showing how the industry has adapted and combined trading styles to achieve higher risk-adjusted results in the long run. These advanced trading techniques are outlined in detail with complete rule sets and in-depth analysis. “ 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