Carriker Asset Management, LLC

TrendStrategy

The system capitalizes on the strengths of trend following while addressing some weaknesses of traditional implementations of the style. The combination of long term trend following principles, shorter term entry and exit triggers, a proprietary trend filter, and dynamic position re-sizing results in more agile trading than traditional trend following systems, with fewer round-turns and longer holding periods than short term methods. Two of the strategy’s important edges are the proprietary trend filter and dynamic position re-sizing. Unlike the methods most managers employ to distinguish trending periods from choppy ones, the trend filter uses no moving averages of price or other traditional trend indicators. Rather, it measures current market volatility and price levels as they relate to long term price changes. The system also uses information about intermarket relationships to vary position size dynamically throughout the life of a trade. These techniques increases risk adjusted performance meaningfully in back-testing, while remaining true to the core philosophy of trend following: ride winners, cut losers, manage risk, trade with the trend.