Research on the Performance of the Trend Following Trading Strategy in the Chinese Commodity Market

Trend following strategy is a popular that investors often use in trading around the world. Stocks are bought during an upswing and sold decline, two main phases of trend-following technique. This research evaluates performance Chinese commodity market by systematically employing quantitative methods to trade get back test results for evaluation. The indicator this DMAC (Dual Moving Average Crossover) with trend called ADX adjustment. As kind technical analysis, so-called “Dual Crossovers” cited as providing reliable signs discerning future stock price movements. By these indicators backtesting on 21 futures ten years, discovers does not perform well (negative annualized return sharpe ratio) from 2011 2021. refining which replace MACD (Moving Convergence/Divergence) abandon ADX, backtest result performs much better. refinement suggests utilization different signals/indicators will lead market. concludes worthy exploring terms using indicators.