Trend Following Stocks: A Complete Trading System
4.0 (73 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
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Trend Following Stocks: A Complete Trading System

Discover a complete trend following strategy for investing in the best trending stocks.
4.0 (73 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
1,168 students enrolled
Created by Joe Marwood
Last updated 5/2017
English
Current price: $20 Original price: $95 Discount: 79% off
30-Day Money-Back Guarantee
Includes:
  • 1.5 hours on-demand video
  • 12 mins on-demand audio
  • 20 Articles
  • 6 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Full system code and rules for a complete trend following trading system.
  • In-sample and out-of-sample results of the system.
  • Education in trend following theory, performance, and fundamentals.
  • Closed captions subtitles for reinforced learning.
View Curriculum
Requirements
  • Some basic understanding of stock market terms.
Description

• This is a complete trend following strategy for stocks.

• Incredible historical performance with low drawdown.

• All course updates completely free and always will be.

• Course optimised for mobile, tablet, and desktop. System code included.

“Trend following methods have been the simplest, most successful trading methods for decades" – Perry J Kaufmann

When it comes to beating the stock market, there are few strategies that can offer such consistent returns as the strategy of trend following.

Trend followers made a killing in 2008, when the whole financial system was in meltdown and they made millions in 2014, just when the sceptics were saying the strategy was dead. And some of the best trend following funds have been in operation for over 40 years, building up funds with billions of dollars in assets.

To be sure, most big trend following funds operate in the realm of managed futures but there is significant evidence that trend following can be applied just as successfully to stocks.

On this course, you will learn the full rules to an original trend following strategy that can be used in the stock market. Rules that anyone can master and put into practice with just a couple of hours work a week.

Who am I? 

My name's Joe Marwood and I'm a trader originally from London, England. I've been trading trend following systems on stocks for years and over the next couple of hours, I will build and then disclose this complete trend following strategy for stocks that has been rigorously tested on historical stock market data.

I go through the fundamentals of trend following, the theory, the secrets, and the steps necessary to build a robust and reliable trend trading strategy.

I also record live system back-tests so you can see the real, unaltered, system results and the system equity curve for yourself.

This is a strategy that is simple enough for any investor to understand yet sophisticated enough to show incredible annual returns versus the benchmark. It's a strategy that has been able to capture some huge multi-week trends in some of the best stocks on the market. And this strategy can be applied to other global stock markets too.

The trend following for stocks strategy is suitable for:

• Full-time and part-time traders.

• Investors seeking to diversify their existing portfolios.

• Traders and investors looking to passively build wealth and income.

• Those seeking alternate investment strategies.

As you may have guessed, this is not another get rich quick scheme or day trading system with a high failure rate. Rather, this is a straightforward and mechanical approach to following trends in stocks designed to compound your wealth and beat the market.

The strategy can be used on it's own or as part of a fully diversified investment portfolio.

Stop following the news and start following the trend today.

Who is the target audience?
  • This course is suitable for anyone with an interest in trading and beating the market using a unique, rarely talked about strategy.
  • The goal of this course is to provide a complete trend following system and to show live back-test results.
  • The goal of this course is to provide a complete trend following system and to show in live testing how the strategy has performed over reliable, historical data.
Curriculum For This Course
Expand All 64 Lectures Collapse All 64 Lectures 03:27:30
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Course Details
2 Lectures 02:12
How to take this course
00:36

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Trend Following Theory
9 Lectures 16:45

There is no such thing as 'the trend'. Trend followers must take a systematic approach.

Preview 01:03

Trend following is more than just a trading style.

Preview 02:34

The recent performance of famous trend followers has been good.

Preview 01:34

This course comes with closed captions so you can follow along to every word.

Don't forget to add closed captions (CC)
00:15

Trend followers make their money by trading large, multi-month moves in stocks and futures. This is a collection of some of the biggest market bubbles and crashes in history.

Preview 02:35

Does trend following work on stocks? What are the difference between managed futures and trading stocks?

Managed futures vs. stocks
03:51

We are following trends in stocks, is this momentum or trend following?

Is this momentum or trend following?
00:54

What are the main criticisms of trend following strategies?

Criticism of trend following
02:27

30 rules to live by when following trends in the stock market.

30 rules for trend following stocks
01:32
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Principles For This Course
1 Lecture 01:48

Before we build the trading system let's be clear what our goals are.

Our mission statement
01:48
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System Preparation
5 Lectures 12:18

We will be using a couple of tools for system development and these are discussed in this lecture.

Tools we will be using
01:05

Having accurate and reliable data is essential when building a trend following system.

Data issues: Survivorship bias & back-adjusted data
03:02

What are the benefits of optimisation and walk forward analysis and how will we approach these concepts?

Optimisation or walk forward?
02:49

Portfolio diversification and compounding will help us create a winning system.

A word about diversification and compounding
03:36

The objective function is how we measure the trading system so we can compare it against other systems and make improvements.

The objective function - Bliss
01:46
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Building The Trading System
6 Lectures 14:59

Working out the trend following buy rules for our strategy.

Entry criteria/ system buy rules
03:36

Working out the trend following sell rules for our strategy.

Exit criteria/ system sell rules
01:41

Working out our risk and position sizing.

Position sizing/ risk
02:32

Adding a market timing filter to our strategy.

Adding a market timing element
03:28

The trend following strategy for stocks written in plain language.

Full system rules in plain language
02:43

The loose version gives more trades and sometimes greater returns, but at the expense of greater drawdowns. The strict version builds slowly and has smaller drawdowns but fewer trades.

Two Ways To Run The System: Loose Vs. Strict
00:59
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Performance Of The Trading System (Results)
2 Lectures 06:40

The results of the trading system tested on a range of different stock universes.

Testing The System On US Stocks – Results
05:52

Full summary of the trading system results

Full summary of results
00:48
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System Analysis
3 Lectures 06:13

Run through of the top winning trades from the trend following system we've created.

Preview 03:13

Run through of the worst losing trades from the trend following system we've created.

Top trading system losers
03:00

Analysis of the system results by sector. Which sectors produced the best returns for our strategy?

Performance analysis by sector
1 page
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Scrutinising & Stress Testing The System
3 Lectures 04:33

Performance of the trading system and desirable portfolio size will depend on the starting equity.

Starting capital requirements
02:23

Monte carlo analysis of our trend following system results.

Monte carlo analysis - robustness test
02:06

Full summary of stress test results
00:04
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Amibroker Code & Additional Settings
6 Lectures 05:17

Basic code for use without Premium Data Alpha Database

Amibroker System Code
00:48

Amibroker System Code - Use With Premium Data (PDU)
01:18

Amibroker code to use with the new Norgate data platform (NDU).

Amibroker System Code - Use With Premium Data (NDU)
01:18

Code add-in to enable the Monte Carlo simulation. See the other lecture on Monte Carlo to see the results.

Monte Carlo code add-in
00:15

Clarification on the data we used.

Data coverage: Norgate Premium Data: (Important)
01:11

Some additional Amibroker settings required to replicate the system results.

Additional Amibroker settings
00:24
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Taking The Trading System Live
5 Lectures 07:18

Learn how to trade the trading system in live markets.

How to trade the trading system live
03:09

Be aware of these extra considerations when trading the system live.

Extra considerations
00:54

Some difficulties that face trend followers when trading stocks.

Trend following difficulties
01:03

How To Scan For New Highs And More Options
01:51

Tax implications
00:21
6 More Sections
About the Instructor
Joe Marwood
4.2 Average rating
494 Reviews
15,052 Students
7 Courses
Trader & Investor

Joe B Marwood is a trader and investor specialising in financial trading and mechanical trading systems.

He began his career trading stock and bond futures for a prop trading firm in the UK and now works through his own private company.

FAQ

How did you get started?

I started my career as a professional day trader for a UK-based prop firm where my principal products were the FTSE 100 future and German Bund.

Today I trade a portfolio of individual stocks and occasionally futures and I have a passion for building automated trading strategies and systems.

What is your trading style?

I use a mechanical strategy to trade on a largely end of day basis. I look at both fundamental and technical analysis and use strategies that are based on historical simulations. I often combine those strategies with my own experience and discretion to come up with trades that I believe are the most attractive on a risk/reward basis.

Mean reversion or trend following?

I have found that traditional trend following methods do not work as well as they once did. My methods are based on my own observations on the market whether they are based on momentum, trends, mean reversion or anything else.

Who taught you how to trade?

My mentor was a former head of trading at a well known German investment bank. I have also read and studied countless books, journals, and articles, and have spent many hours in the market. You can never stop learning.

Why did you make this course?

To educate others so that they don't make the same mistakes I made. Learning to trade can be a very expensive and drawn out process. As a trader, it is also extremely beneficial to have sources of side income as that takes the pressure off your own trading. Putting what I have learnt into a course also solidifies my own learning.

What are the secrets to successful trading?

First of all, you must have the passion to succeed. If you are in it only for the money you will have a very tough time and will be doomed to failure. You must also be comfortable with risk and be able to separate your emotions from the money.  Having a system with a profitable expectancy is also crucial and for that you will likely need a strong ability with numbers.

Why do most traders fail?

Most traders start off under-capitalised and then chase unrealistic returns which results in them blowing their account after a couple of big losses. Most beginner traders do not realise the realities of trading which is why they have trouble sticking to trading plans and dealing with their emotions. Trading should be treated as a business.