A consistent, easily executed, fuss-free strategy to ride winners and cut losers in the stock markets. No annual reports. No technical analysis. No lost time on painful, gut-wrenching research. All run by practitioners who put their money where mouth is.
Traditional investing research is time consuming, painful, hard to follow, filled with complicated jargons and completely unpredictable to those unwilling to put in at least 10,000 hours of deliberate practice to learn the craft.
Investors have to be willing to understand business practises, check out management, understand balance sheets, follow industry developments, understand business risks, calculate share values among a thousand other minute details.
Enter Trend Following.
- No technical analysis required.
- No fundamental analysis required.
- No business acumen needed.
- No need to monitor industry developments.
- No need to worry about fraud (Noble Group) and companies with absurd risk management (Hyflux).
- No need to worry about CEOs destroying shareholder value selfishly (WeWork).
- Easy to execute and follow
Trend Following Signals generates buy and sell decisions designed to ride winners to the top and cut losers fast. It’s backed by nearly two centuries of track records and plenty of academic research (which can be seen below).
Trend Following: Clear Evidence of Long Term Track Record
Trend Following has nearly two centuries of established results and research.
Real world case studies also show that average people on the street can be trained to become efficient trend followers. Richard Dennis settled that debate rather cleanly by teaching 21 average people a simple system and having them follow that system with his own money - which ranged between $250,000 to $2 million.
After 5 years, the turtles earned in aggregate $175 million in profit. If that's not enough evidence for you, read on.
Trend Following: Clear Performance Advantage Vs Buy & Hold
#1 - Better Risk-Adjusted Returns: Sharpe Ratio
When you put a dollar to work in the markets, you're also putting it at risk. Nobel laureate William F. Sharpe developed the Sharpe Ratio to calculate which strategies earned better returns for the risks taken. And Trend Following here comes out head and shoulders above the buy-and-hold strategy as seen above.
#2 - Lower Maximum Drawdowns
A maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. Put simply, Trend Following is active. It cuts losses instead of aiming to buy consistently at every period of time. This gives investors who use Trend Following an edge: they are less exposed to bigger market drops since they do not allow losses to keep running. The chart below references what the model would have done in the 2008-2009 global financial crisis.
#3 - Better Compounded Annual Growth Rate Over Time
This determines how quickly (or slowly) you become rich. As noted above, Trend Following earns better Compounded Annual Growth Rate versus the traditional Buy-and-Hold Strategy.
Trend Following: Managed by Quantitative Investment Practitioners
Lim Eng Guan
- Masters of Science in Financial Engineering, NTU
- Masters (by research) in Engineering, NUS
- Bachelor of Electrical Engineering (1st Class) from NUS with Minor in Business, NUS
Eng Guan is a quantitative investment practitioner. He has extensive experience, having spent more than a decade in the asset management and banking industry working through various roles since 2006. These include performing investment due diligence on hedge funds, valuation control on derivative and structured products, proprietary trading and fund management.
Prior to all these, he started out his first career in the civil service in 2002. But it was also during this time that he developed a keen interest in the financial markets. This prompted him to make a mid-career switch and his decision vastly open up his horizon on the investment landscape. There was so much more beyond just picking stocks, reading analyst reports or financial statements. An engineer by academic background, he always had a strong passion and interest for models and systems. That naturally led him to pursue the systematic or data driven approach towards investing.
- Masters of Science in Wealth Management, SMU
- Bachelor of Civil Engineering (2nd Upper Class) from NUS
Patrick is a quantitative investment practitioner. He has extensive experience, having spent more than a decade in the asset management and banking industry working through various roles since 2005. These include managing private client portfolios, covering hedge fund clients for equity derivatives products and strategy, product control on derivative and structured products and fund management.
Prior to all these, he started out his first career in the civil service in 2000. After building up his initial savings, he started investing in stocks. From there, he developed a keen interest in financial markets which led him to make a mid-career switch into the finance industry. Gradually, he moved beyond picking stocks to adopting a global macro mind-set covering multiple asset classes. This helped him navigate the 2008 financial crisis successfully. Eventually, he settled on the systematic data driven approach towards investing.
This is the trainer's combined performance. Do note that this is not leveraged at a rate of 1.5, meaning you borrow $5 for every $10 you have to increase your position sizing. Leverage has only been introduced to the trainer portfolio since Jan 2018.
Trend Following Service Objectives
Long term returns of 10-15% each year
Market conditions vary. But the ability to make money in the market should not. Our aim is to achieve long-term performance average of 10-15% returns per year
Reduced Risk in Global Financial Meltdowns
Maybe 1 out of 100 people see it coming. It makes investors sweat and it makes their hearts palpitate. Nassim Taleb calls it Black Swans. We call it unseen global financial meltdowns.
Trend Following protects us by cutting losses early before the storm truly hits us over the head with a baseball bat.
This means we get to keep our capital safe versus other strategies which suffer drastic drawdowns. We have illustrated this in the above, showing both higher returns per dollar risk taken, and lower drawdowns versus the traditional buy and hold approach.
Trend Following: How It Works, Crucial Information
A minimum capital of USD$20,000 is required for the US market.
Signals are sent via the Telegram app. You will need to download it in order to receive the signals.
Trend Following Signal Example
Dow Jones Index -
Current Portfolio Holdings (Tickers)
This is a signal for trend following on DJI component stocks. Current Portfolio Holdings section shows the stocks that the portfolio should already hold currently. New Additions section shows the stocks that should be bought at the next market open. Close Out section shows the stocks that should be sold and closed out from the portfolio.
For a new subscriber, simply buy all the stocks in the Current Portfolio Holdings section except those that appear under the Close Out section. The stocks under the New Additions section should also be bought. So for the example above, the stocks to buy are:
Leverage & Allocations
- Subscribers are advised to not leverage beyond an equity multiplier of 1.5. That means if you have $1 million of starting capital, you do not borrow more than an extra $500,000.
- Leverage is a double-aged sword. You can generate higher returns but your risk is also greater. An equity multiplier of 1.5 times is currently the maximum amount we would recommend as a result. Do not hesitate in closing out and in opening up of positions.
- Follow the model swiftly and surely. Do not deviate from signal instructions.
The amount of shares to buy for each stock is calculated as follows:
- (Total Capital x Leverage) / 30 divided by the closing share price of the stock
The amount of shares to buy for New Additions is calculated as follows:
- (Total Equity x Leverage) / 30 divided by closing price of the stock
We will answer any questions you have from day one. An email address will be provided to all subscribers who require further aid and explanation.
Your only risk is learning something new. And your reward can be a smarter, safer, more consistent form of investing that lets you sleep soundly at night while generating respectable returns.
The Trend Following Signals will cost you $165 every 3 months - or about $660 a year.
That is $1.80 a day, or about $12.65 a week.
That's a whole lot less than what most people will spend for their weekly entertainment expenses on either good food or movies or a trip to Malaysia even.
Hell, two cups of Starbucks is more expensive than this - and none of these expenses help you grow your wealth. None. Period.
I'll let you be the judge of whether its worth paying $12.65 a week to earn a life-changing fortune over the next two decades.
Trend Following Signals
Terms of Service / Important Notes
- In order to receive the Trend Following Signal alerts, you will need to use a Telegram account. You can download the Telegram mobile app, and set up an account for free.
- By subscribing to the Trend Following Signals, you are acknowledging the risks involved in trading the financial markets and are also acknowledging that you, the subscriber, and not Dr Wealth, are solely responsible for any losses, financial or otherwise, as a result of using this service. Dr Wealth shall not be liable under any circumstances for any lost profits, lost opportunities, misstatements, or errors contained within the service. You also agree that Dr Wealth will not be held liable for data accuracy, failure of hardware, software and network connections, or any special or consequential damages that result from the use of, or the inability to use, any or all of the materials published within the service. The result of any system failure may be that you may not receive the signal alerts in good timing, or at all. We cannot guarantee that you will receive every communication from us. It is your responsibility to ensure that you have the information that you want. You agree to hold Dr Wealth harmless for any act resulting directly or indirectly from this service, its data, content, materials, associated pages and documents.
- The Trend Following Signals is to be used for your own personal analysis only and should not be considered as financial advice. This service is not an offer to invest in any financial product.
- Your three months paid subscription plan for Trend Following Signals begins once your initial payment is processed. Recurring payment will be charged every 3-months unless subscription is cancelled via Telegram @TrendFollowingBot. You authorise us to store your payment method and to automatically charge your payment method every three month until you cancel.
- Dr Wealth may change the price for the paid subscriptions, including recurring subscription fees, from time to time and will communicate any price changes to you in advance. Price changes will take effect at the start of the next subscription period following the date of the price change. You have the right to reject the change by unsubscribing from the paid subscription prior to the price change going into effect.
- Dr Wealth shall be entitled to add, vary, rescind or amend any or all of these terms and conditions at any time at its discretion without due notice.
- Dr Wealth reserves the right to amend the markets for the Trend Following Signals where required.
- Dr Wealth is the business operating name of the company, BigFatPurse Pte Ltd.