[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-562363-105":3,"detail-sidebar-cat-1-en-105":80,"doc-detail-562363-en":126},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","five-trend-index-introduction","FIVE Trend Index - Introduction","","The FIVE Trend Index is a Munich Re rules-based, trend-following index designed to capture price momentum across multiple global futures markets. It focuses on buying rising assets and selling falling ones, aiming to exploit persistent return patterns while managing positions on both the long and short side. The index references 30 futures markets and allocates exposure across equities, commodities, currencies, and interest rates, with an investment universe spanning major benchmarks and commodity and FX contracts. It also explains why trends arise, how statistical indicators define trend start and end, and how strategies avoid exact tops and bottoms to target the trend’s middle.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/presentations/","Presentations",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/five-trend-index-introduction/562363/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/five-trend-index-introduction/562363.png","ImageObject",442,249,{"name":42,"@type":43},"BigDaveOnline","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-25","2026-10-12",true,{"@type":52,"interactionType":53,"userInteractionCount":33},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What is the FIVE Trend Index and how does it work?","Question",{"text":62,"@type":63},"It is a rules-based trend-following index that buys assets with rising prices and sells those with falling prices to capture market momentum across futures markets.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"Why does trend following expect prices to trend instead of move sideways?",{"text":67,"@type":63},"The document explains that behavioral underreaction to new information can let trends continue as prices gradually adjust, with subsequent investor herding and potential overshooting followed by reversal.",{"name":69,"@type":60,"acceptedAnswer":70},"How does the index determine when a trend starts and ends?",{"text":71,"@type":63},"It uses statistical indicators such as moving averages and regression slopes to estimate trend start and end points, acknowledging that signals are not exact.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},562363,1792273094,{"code":4,"msg":81,"data":82},"success",[83,87,92,97,102,107,112,117,122],{"id":84,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":85,"slug":86},11,90,"presentations",{"id":88,"doc_module":22,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},12,"Resumes",80,"resumes",{"id":93,"doc_module":22,"doc_module_name":25,"category_name":94,"show_sort_weight":95,"slug":96},14,"Invoices",70,"invoices",{"id":98,"doc_module":22,"doc_module_name":25,"category_name":99,"show_sort_weight":100,"slug":101},15,"Posters",60,"posters",{"id":103,"doc_module":22,"doc_module_name":25,"category_name":104,"show_sort_weight":105,"slug":106},16,"Social Media",50,"social-media",{"id":108,"doc_module":22,"doc_module_name":25,"category_name":109,"show_sort_weight":110,"slug":111},17,"Forms",40,"forms",{"id":113,"doc_module":22,"doc_module_name":25,"category_name":114,"show_sort_weight":115,"slug":116},18,"Letters",30,"letters",{"id":118,"doc_module":22,"doc_module_name":25,"category_name":119,"show_sort_weight":120,"slug":121},21,"Paper Templates",5,"papers-templates",{"id":123,"doc_module":22,"doc_module_name":25,"category_name":124,"show_sort_weight":4,"slug":125},158,"General","general-158",{"code":4,"msg":81,"data":127},{"doc_id":78,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":84,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":33,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":88,"language":135,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":12,"update_tm":139,"read_time":33},962090896214,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","Munich Re Markets  \nFIVE  \nTrend Index  \nFIVE  \nWe believe in numbers.  \nIntroduction  \nThe FIVE Trend Index tracks the performance of a rules based trend following trading system which seeks to exploit price trends in various futures markets globally.  \nDuring the past 40+ years, trend following trading strategies have been able to generate attractive long term investment results in both up and down markets. Moreover, they were one of the few trading strategies that performed well during the Global Financial Crisis – a period during which most other investments, both traditional and alternative, suffered.  \nInvestors’ interest in trend following has grown substantially during the past decades. Today, the so called Managed Futures industry – an industry which specializes in systematic trend following trading systems – manages more than $300 billion totally.  \nManaged futures AUM in $ bln  \n$ 400  \n$ 350  \n\n| $ 300 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |\n| $ 250 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| $ 200 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| $ 150 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| $ 100 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| $ 50 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |\n| 0  | |  |  |  |  |  |  |  |  |  |  |  |  |  |\n\n1980  \n1981  \n1982  \n1983  \n1984  \n1985  \n1986  \n1987  \n1988  \n1989  \n1990  \n1991  \n1992  \n1993  \n1994  \n1995  \n1996  \n1997  \n1998  \n1999  \n2000  \n2001  \n2002  \n2003  \n2004  \n2005  \n2006  \n2007  \n2008  \n2009  \n2010  \n2011  \n2012  \n2013  \n2014  \n2015  \n2016  \n2017  \nSource: BarclayHedge, September 2017  \nMunich Re FIVE Trend Index 1  \nIndex overview  \nThe FIVE Trend Index is a rules based trend following index which is sponsored and owned by Munich Re.  \nIn simple terms, trend following refers to a trading approach that buys assets whose prices are rising while selling those whose prices are falling. As such, trend following seeks to capitalize on the “momentum” in market prices; that is, the tendency of assets which have produced positive returns in the past to continue producing positive returns in the future, and vice versa.  \nMost trend following strategies use liquid exchange traded futures contracts to buy and sell markets from various sectors including equities, currencies, bonds, and commodities. This also applies to the FIVE Trend Index, which currently references 30 futures markets globally.  \nMarkets by asset class  \nAsset class  \n\n|  Equities | 23.33% |\n| --- | --- |\n|  Commodities | 33.33% |\n|  Currencies | 20.00% |\n|  Interest Rates | 23.33% |\n\nInvestment universe  \n\n| Equities |\n| --- |\n| DAX1 , EURO STOXX 501 , FTSE 1002 , HANG SENG3 , NASDAQ-1004 , NIKKEI 2255 , S&P 5004 |\n| Commodities |\n| BRENT CRUDE OIL6 , WTI CRUDE OIL7 , LS GASOIL6 , RBOB GASOLINE7 ,\u003Cbr>ULS DIESEL7 , NATURAL GAS7 , COPPER8, GOLD8 , SILVER8 , PLATINUM8 |\n| Currencies |\n| AUD/USD4 , CAD/USD4 , CHF/USD4 , EUR/USD4 , GBP/USD4 , JPY/USD4 |\n| Interest Rates |\n| CANADA 10Y GOVT BONDS9 , GERMANY 10Y GOVT BONDS1 ,\u003Cbr>GERMANY 30Y GOVT BONDS1 , JAPAN 10Y GOVT BONDS4 ,\u003Cbr>UK 10Y GOVT BONDS2 ,\u003Cbr>USA 10Y GOVT BONDS10 ,\u003Cbr>USA 30Y GOVT BONDS10 |\n\n1 Eurex (EX)  \n2 Intercontinental Exchange Futures Europe (ICE EU)  \n3 Hong Kong Futures Exchange (HKFE)  \n4 Chicago Mercantile Exchange (CME)  \n5 Osaka Exchange (OSE)  \n6 Intercontinental Exchange Futures Europe (ICE EU)  \n7 New York Mercantile Exchange (NYMEX)  \n8 Commodities Exchange (COMEX)  \n9 Montréal Exchange (MX)  \n10 Chicago Board of Trade (CBOT)  \n2 Munich Re FIVE Trend Index  \nAbout price trends  \nFor trend following to work, prices need to trend. When prices move sideways, reversing from tops to bottoms and bottoms to tops, trend following trading systems are unlikely to perform well. But why should prices trend? And what initiates a trend in the first place?  \nOne explanation is given by Kahneman and Tversky’s Nobel-Prize winning work on behavioral econo","cbCaiqBd3chawADM","https://ap.wps.com/l/cbCaiqBd3chawADM","pdf",643068,"English","# Introduction\n## Index overview\n## Markets by asset class\n## Investment universe\n## About price trends\n## The FIVE Trend Index","[{\"question\":\"What is the FIVE Trend Index and how does it work?\",\"answer\":\"It is a rules-based trend-following index that buys assets with rising prices and sells those with falling prices to capture market momentum across futures markets.\"},{\"question\":\"Why does trend following expect prices to trend instead of move sideways?\",\"answer\":\"The document explains that behavioral underreaction to new information can let trends continue as prices gradually adjust, with subsequent investor herding and potential overshooting followed by reversal.\"},{\"question\":\"How does the index determine when a trend starts and ends?\",\"answer\":\"It uses statistical indicators such as moving averages and regression slopes to estimate trend start and end points, acknowledging that signals are not exact.\"}]","FIVE Trend Index - Introduction | PDF",1791808444]