Part 2: Trend’s Not Dead (It’s Just Moved to a Trendier Neighborhood)

This paper is the second in a two-part series. In part 1, which appeared in the Winter 2019 edition of the GCARD, the authors explored the reduced performance of trend followers over the past decade. In Part 2, the authors use a novel dataset of alternative commodity markets to show that the “trendiness” of less mainstream markets, selected based on a set of simple criteria, is inherently higher and that trend following in these markets has continued to be significantly better.