What is Trend Following?
All In on Trend Following
Trend following is a rules-based strategy that aims to follow lasting price moves in markets around the world. Rather than trying to predict what markets will do next, trend followers respond to what markets are already doing.
At Chesapeake Capital, trend following is not just one strategy among many. Trend following is all we do. Just a clear, consistent focus: trend following plus nothing.
A Singular Focus on Price
Trend following is built around one idea: price. When prices begin to trend, we follow. When those trends end, we exit. We don't rely on forecasts, opinions, or fundamental analysis. Our decisions are based solely on price movement and pre-defined rules.
This means that, at its core, trend following:
- Is rules-based and repeatable
- Doesn’t involve predictions or narratives
- Uses price trend as the only signal
Fully Systematic and Long-Term
Trend following is 100% systematic. Every position is driven by a rules-based model with no subjective input. The approach is long-term in nature, aiming to stay with winning trends and quickly exit losing ones.
Designed for Asymmetric Opportunities
Trend following seeks to capture large, directional market moves. While small losses are part of the process, the strategy is designed to stay with winners, finding those rare, powerful moves that can drive performance.
Built to Endure Across Market Cycles
Trend following has stood the test of time. It’s a strategy that has delivered through bull and bear markets, inflation, deflation, and crisis periods. With decades of live performance history and academic validation, its value is clear.
Transparent, Repeatable, and Uncompromised
Everything we do is rooted in our core belief: trend following works and it works best when it’s not combined with anything else. That clarity gives us the discipline to stay the course, and the confidence to explain every decision we make.