How Investors Can Navigate the Markets on Autopilot

Investors will certainly remember a 2018 flight that saw them cruise through much of the year on the back of an extended bull run only to get caught in a hailstorm of volatility at the end. With a de-risking maneuver of shifting to safe-havens like Treasury bills, investors could have nullified the year-end drawdown and limited losses.

However, the vast majority of investors don’t have the time to constantly monitor the markets and adjust their portfolios to account for sudden changes. In essence, if a product existed that captured the upside while protecting the downside in the convenience of an ETF wrapper, this would be ideal.

Thankfully, there is such a product–the Pacer Trendpilot ETFs. It essentially puts an individual’s investments on autopilot so that an investor is able to reap the benefits of a market trending up combined with built-in protection during a drawdown.

On the upcoming webcast, How Investors Can Navigate the Markets on Autopilot, Sean O’Hara, President of Pacer ETFs, will give attendees a closer look under the hood of the Trendpilot ETFs. Additionally, he will discuss the history of bear-bull market trends, the theory behind the 200-day simple moving average (SMA), how to locate trends despite market noise, and how advisors can incorporate trend-following strategies into a diversified portfolio.

The Trendpilot Strategy

At the heart of the Trendpilot strategy is the 200-day SMA. The reason for choosing the 200-day SMA is clear–within the last decade, using the technical indicator returned 6.23 percent as opposed to other SMA indicators.