Trend Following Models
NFA's proprietary trend following models, purely mechanical,
use technical analysis indicators to determine and signal market
entries after an established up-trend has been measured and exits
on the down trend.
Rule number one for growing a portfolio is to avoid markets
that are trending down. This model measures the internal
strength and speed of the market. It will buy near the
lows or sell shortly after the top. By definition it must wait
for the market trend to be established. This means the market
must move off its low and increase in value and participation
before a buy signal can be issued. By the same token, the market
must peak and start to decline before a sell signal can be issued.
The trend following models conservatively let the market tell
us when to be in or out.
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