Of all the aspects of The Machine®, the software’s ability to let traders and investors combine quantified trend following strategies with quantified mean reversion (or pull-back) trading
strategies is among those features that early adopters have mentioned most often.
As it turns out, traders and investors are saying that being able to buy and hold stocks for 6-12 months, a typical holding period in The Machine‘s quantified trend following trades, is a
perfect compliment to the smaller, consistent gains provided by the high probability short term pull back trading strategies.
To learn more about why quantified trend following and quantified mean reversion trading strategies go well together, click
here to read: “Trading Quantified Pullbacks and Quantified Trends with The Machine“.
One thing that surprises many traders and investors who are new to The Machine‘s trend following trading strategies is that the stocks The Machine identifies as potential trend following
candidates are the kind of blue chip, quality stocks that make business headlines every day.
For example, we recently highlighted the fact that Warren Buffett, the Oracle of Omaha, bought a $200 million dollar stake in ^FISV^ – one year after The Machine highlighted FISV
as a candidate for a trend trade. (Click
here to read our article: “The
Machine Buys FISV Before Warren Buffett”).
The upside is that traders and investors using The Machine were already ahead by more than 7% when Buffett bought in (the news, by the way, boosted the stock another 2% in that session alone.)
Consider some of the other stocks that The Machine has encouraged traders and investors to consider for trend trades. ^TJX^ was a recommendation from The Machine from early
The stock actually was down for a fourth day in a row when traders and investors following one of The Machine‘s trend following trading strategies were signaled to the opportunity in the stock.
As of Friday’s close, not quite a year later, TJX is up more than 18%.
Just one day after the signal in TJX, The Machine was directing traders and investors to consider ^KMB^.
Like shares of TJX Companies, shares of KMB were also moving lower in the short term. But this short term pullback provided the perfect opportunity for traders and investors to begin adding
shares of TJX courtesy of another of The Machine‘s trend following trades. Going into the close on Friday, again less than a year later, shares of Kimberly Clark are up more than 11%.
But perhaps the jewel in The Machine‘s trend following crown right now is the position in ^AAPL^.
The Machine‘s trend following signal in Apple came earlier than those for TJX and KMB. And rather than being sharply lower when the signal arrived, Apple shares were moving more or less
sideways. However in the weeks and months since The Machine alerted traders and investors to the potential trend trading opportunity in Apple, the stock has simply soared, gaining well over 50% in
the year since.
If you have been looking for a way to trade stocks like TJX Companies, Kimberly Clark and Apple Inc. using quantified, trend following trading strategies, then click
here to sign up for a free
presentation on The Machine by Larry Connors, CEO and founder of The Connors Group. For traders and investors seriously interested in managing their own money, Larry Connor’s presentation,
“Building High Performing portfolios using The Machine“, is a must-see/must-hear event. Click the link above to save your spot now.
David Penn is Editor in Chief at TradingMarkets.com.