The trend follower is based on research conducted by Gary Antonacci into Dual Momentum. It is an indicator which provides a Buy/Sell signal during the rebalance process, depending on the momentum of the underlying benchmark. An example trend follower would check if the S&P 500 is positive, if so, rebalance as usual, otherwise sell your positions and hold cash. The trend follower greatly reduces volatility as it prevents users from holding stocks during downturns in the market. Take look at a comparison between two premium strategies: Smart Quality & Top Quality and High Momentum. The performance of each is impressive, but the inclusion of the trend follower in the Smart Quality strategy improves the risk adjusted returns, volatility and max drawdown for just a small reduction in the average annual return.