How to ‘trend follow' commodities
Chris Cole kept it super simple with respect to backtesting Commodities Trend Following.
He used a simple 50-day moving average signal, buy or sell, on a broad basket of commodities.
That's it. Just the 50-day moving average for him to backtest this.
All he did was ask, if it's above the 50-day, then we are positioned long, if it's below the 50-day, then we are positioned short.
So what is the solution? Watch the video above to find out.