FCX120.01▼ −2.60%AVGO513.87▼ −1.81%NVDA704.85▼ −0.32%FCX120.01▼ −2.60%AVGO513.87▼ −1.81%NVDA704.85▼ −0.32%
Trend Wolf — Signature move
▍ Legend Terminal · Wolf

Trend Wolf

A collectible critter in the spirit of Jesse Livermore · 1900s–1930s

POWERRiding the direction of the trend rather than fighting it.
epicMomentum styleWolf
Total return
+5.0%
Simulated, this window (~1 month). Never annualized.
vs SPY
+3.3%
Window spread over the S&P 500 benchmark.
Max drawdown
−9.1%
Worst peak-to-valley dip realized in-window.
Sharpe
1.73
Return per unit of risk (annualized ratio).
Simulated · educational · not investment advice. A book traded in Trend Wolf's style — a fictional critter in the spirit of Jesse Livermore. Not a portrait, quote, endorsement, or Jesse Livermore's real returns.
The story

A critter in the spirit of Jesse Livermore, the early-1900s speculator immortalized in 'Reminiscences of a Stock Operator' who famously profited from the 1907 and 1929 market crashes. Inspired by his tape-reading and trend instincts, and remembered as a cautionary tale about leverage and discipline. Educational inspiration only.

The lesson
What a player learnsCutting losses and respecting the trend matter as much as being right.
Strategy dossier — MomentumMomentum · medium risk

Buy what's already going up and ride the trend until it fades.

Momentum bets that recent winners keep winning and recent losers keep losing over horizons of roughly three to twelve months. A momentum investor ranks assets by trailing return, buys the strongest, and rotates out as strength decays. The edge is behavioral: investors under-react to news, then pile in late, stretching moves further than fundamentals justify. Positions are sized by relative strength rather than valuation, so price itself is the signal. Discipline lives in the exit rules, because momentum works until it violently doesn't. It is agnostic about whether a company is cheap or expensive, only whether its price is rising.

Strengths

  • Historically one of the most persistent anomalies across markets and eras
  • Simple, rules-based, and easy to backtest
  • Captures big trending moves other styles miss

Trade-offs

  • Suffers sharp 'momentum crashes' at market turning points
  • High turnover means taxes and trading costs bite
  • You are always late to the entry and late to the exit by design
Also practiced byCliff Asness / AQRRichard DriehausNarasimhan Jegadeesh & Sheridan Titman (academic pioneers)
Read the full Momentum guide →
The deep-dive on how this style works, its risks, and its history.
Trend-Following / CTA →
Systematically ride price trends across many markets, long or short, using futures.
Growth Investing →
Pay up for companies expanding revenue and earnings faster than the market.
SIM · Track record — equity curverebased · 100
100.0102.0104.0106.0108.0110.0112.0114.02026-06-182026-06-192026-06-222026-06-232026-06-242026-06-252026-06-262026-06-292026-06-302026-07-012026-07-022026-07-032026-07-062026-07-072026-07-082026-07-092026-07-102026-07-132026-07-142026-07-152026-07-16
A simulated book traded in Trend Wolf's style over the season window (2026-06-18 → 2026-07-17, ~21 sessions) vs SPY. Values rebased to 100 — NOT Jesse Livermore's real returns.
SIM · Risk · ratios
1.73SHARPE
Sortino
2.93
Reward per unit of downside risk (annualized).
Ann. vol
40%
How bouncy the ride was, annualized.
Win rate
50%
Share of days that finished green.
Portfolio β
1.44
How much it moves with the whole market.
Best day
+6.0%
Biggest single-day gain this window.
Worst day
−4.1%
Biggest single-day drop this window.
Drawdown (in-window)
Returns are raw window totals; ratios are annualized (labelled). SPY did +1.7% over the same window.
SIM · Holdings — real companies, honestly explained3 names
TickerCompanyWeightWindowPath
FCX
Freeport-McMoRan
Freeport-McMoRan supplies the raw materials everything is made from.
37%
▲ +15.4%
AVGO
Broadcom
Broadcom builds the software and chips that power modern life.
35%
▼ −4.7%
NVDA
NVIDIA
Designs the chips (GPUs) that power video games and — hugely — AI.
28%
▲ +4.8%
Tickers are real large-caps used for familiarity — no valuation claims, no price targets.
SIM · Sector exposure
Technology
63%
Materials
37%
SIM · Conviction map — beta × volatility
5%25%45%0.4β1.1β1.8βvol ↑market beta →FCXAVGONVDA
Where this critter's simulated picks sit on the risk map — bubble size = portfolio weight, hue = sector.
SIM · Best & worst holder (this window)
FCX
Freeport-McMoRan
+15.4%
▲ Best-performing holding
A price-path fact this window — not a verdict on the company.
AVGO
Broadcom
−4.7%
▼ Worst-performing holding
A price-path fact this window — not a verdict on the company.
Analyst's note
Hedgie
League analyst

🐺 Trend Wolf ran a momentum style book this window. It returned +5.0% (+3.3% vs SPY), with a Sharpe of 1.73 and a -9.1% worst dip. True to its discipline, it rode strength in its leaders. Discipline over drama — this describes the critter's process and result, not the merit of any company. Simulated · educational · not investment advice.

Model sheet4 poses
Trend Wolf — Signature move
Signature moveTheir power in action

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Prices are simulated by a factor model; tickers are real large-caps used for familiarity only. Returns shown are raw window totals over a ~1-month fixture; Sharpe/Sortino/vol are annualized ratios.