Back to projects

Trend-following Strategies

Mar 06, 2025
3 min read
Trend-following Strategies employ sophisticated mathematical modelling to identify, track, and capitalise on mid-term directional market movements.

Capturing Market Momentum Through Advanced Mathematical Models

At HORIZON OEIC LTD, our Trend-following Strategies employ sophisticated mathematical modelling to identify, track, and capitalise on mid-term directional market movements.

Proprietary Mathematical Models

Our approach is built on proprietary quantitative models specifically designed to:

  • Accurately detect the early formation of market trends across multiple asset classes
  • Distinguish between temporary market noise and genuine directional movements
  • Identify optimal entry points to maximise capture of trend momentum
  • Recognize pattern completion signals to secure profits before trend reversals

Systematic Execution Framework

Unlike discretionary approaches that rely on subjective interpretation, our trend-following methodology follows a rigorous systematic process:

  1. Continuous Market Scanning: Our algorithms constantly monitor markets for emerging trend patterns
  2. Signal Validation: Multiple confirmation filters verify the strength and sustainability of detected trends
  3. Position Sizing: Dynamic allocation based on trend conviction and market volatility
  4. Risk Management: Predefined exit parameters protect capital during unexpected trend disruptions
  5. Profit Capture: Systematic rules for securing gains when trend exhaustion signals appear

Performance Characteristics

Our Trend-following Strategies are designed to:

  • Generate substantial returns during periods of clear market directionality
  • Provide portfolio protection during sustained market downturns
  • Deliver returns uncorrelated with traditional buy-and-hold approaches
  • Adapt to changing market conditions across different economic cycles

Applications Within a Portfolio

Trend-following strategies serve multiple roles within a diversified investment approach:

  • Return Enhancement: Capturing outsized gains during strong directional markets
  • Downside Protection: Ability to profit from declining markets through short positions
  • Diversification: Performance patterns distinct from traditional asset classes
  • Inflation Hedge: Capacity to capture commodity price trends during inflationary periods

Why Choose Our Trend-following Strategies

HORIZON OEIC LTD brings together mathematical precision with years of practical market experience. Our trend-following capabilities reflect continuous refinement across multiple market cycles, resulting in models that balance responsiveness with robustness.

Our Trend-following Strategies offer significant potential for portfolio enhancement for investors seeking exposure to a time-tested investment approach implemented with cutting-edge technology.