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SI174: The Future of Trend Following ft. Alan Dunne
10th January 2022 • Top Traders Unplugged • Niels Kaastrup-Larsen
00:00:00 01:06:33

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Today, Alan Dunne joins us to discuss what the future could look like without central bank liquidity being pumped into the markets, macro versus quantitative trading approaches, how to avoid crowded strategies, some post analysis of a trend following research paper, whether CTAs are being gamed by other participants, analysing the various methods of price trend measurements, what may have caused a more difficult trading environment for Trend Following strategies in the 2010s, and the economic factors that lead to great periods for Trend Following.

In this episode, we discuss:

  • What markets could look like without Federal Reserve liquidity injections
  • Macro versus quantitative approaches
  • Avoiding crowded strategies
  • What it was like to trade through 2018
  • How market participants may try to game Trend Followers
  • Measuring the strength of price trends
  • Reviewing the performance of Trend Following during the 2010s
  • Which economic factors could drive strong Trend Following performance

Check out our series on Volatility here, and our Global Macro series here.

Learn more about the Trend Barometer here.

IT's TRUE 👀 - most CIO's read 50+ books each year - get your copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book "The Many Flavors of Trend Following" here.

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Follow Niels & Alan on Twitter:

@TopTradersLive & @alanjdunne

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Top Traders Unplugged wins award for ‘Best Trading Podcast’ and features among the ‘Top 20 Best Investing Podcasts in 2020’ by The Investors Podcast 🏆

Episode TimeStamps:

00:00 - Intro

00:58 - Feel free to share this podcast with like-minded friends using this link: and a big thank you to those who have left a 5-star rating or review on iTunes

02:34 - Macro recap from Niels

05:02 - Weekly review of returns

12:22 - Q1: Brett; How do you define a drawdown?

13:48 - Alan, what is your background and path to the CTA industry?

19:32 - Announcement of new Top Traders Unplugged ‘Allocator’ series 

20:49 - What inspired you to write your highly-regarded paper on Trend Following?

01:04:08 - Benchmark performance update