Battle of the Trend Following Indexes: January 2026
The Battle of the Trend Following Indexes provides a monthly snapshot of the leading trend-following benchmarks. All figures reflect performance through 31 January 2026, with index histories rebased to 1,000 on 1 January 2020.
January 2026 Result
A powerful start to the year as all seven trend benchmarks rally in unison.
January delivered an emphatic opening to 2026, with all seven trend-following benchmarks posting gains. Classic Trend Index and Barclay BTOP50 shared top billing at 5.0 percent each, followed closely by SG Trend Index and SG CTA Index at 4.7 percent apiece. TTU Trend Following Index added 4.5 percent, IASG Trend Following Index gained 4.3 percent, and Systematic Momentum CTA Index advanced 3.9 percent. The breadth of gains was notable, with no index finishing below 3.9 percent for the month.
Trailing quarterly results continued to reflect strong momentum across the group. IASG TF led the rolling three-month window at 8.7 percent, followed closely by Classic Trend at 8.5 percent and SG Trend at 8.2 percent. TTU TF posted 7.5 percent, while Barclay BTOP50, Systematic Momentum, and SG CTA returned 6.6 percent, 6.5 percent, and 6.3 percent respectively.
Year to date, the field is tightly bunched after a single month. Classic Trend and BTOP50 share the lead at 5.0 percent, with SG Trend and SG CTA at 4.7 percent, TTU TF at 4.5 percent, IASG TF at 4.3 percent, and Systematic Momentum at 3.9 percent. The compressed dispersion stands in contrast to the divergence that developed through 2025.
Over longer horizons, the structure remains firmly established. Classic Trend Index extends its lead with a cumulative gain of 140.0 percent since January 2020 and a 15.5 percent CAGR. IASG TF follows at 62.1 percent, with SG Trend at 56.0 percent and BTOP50 at 48.7 percent. TTU TF, SG CTA, and Systematic Momentum remain clustered between 33.6 percent and 41.5 percent.
Performance Highlights
Here is how the indexes performed in January:
Classic Trend Index
+5.0 percent for January, sharing the monthly lead with BTOP50. Trailing quarter +8.5 percent. YTD +5.0 percent. Since January 2020 the index has gained 140.0 percent with a 15.5 percent CAGR. It continues to lead all major risk-adjusted measures with a MAR of 0.98, a Sharpe of 0.93, and a Sortino of 1.82. January’s strong start extends the index’s long-term dominance, now surpassing the 140 percent cumulative threshold.
Barclay BTOP50 Index
+5.0 percent for January, matching Classic Trend for the monthly lead. Trailing quarter +6.6 percent. YTD +5.0 percent. Since 2020 the index has gained 48.7 percent with a 6.7 percent CAGR and the lowest drawdown of the group at 9.7 percent. With the highest proportion of winning months at 63.0 percent, BTOP50 delivered an unusually strong month while reinforcing its role as the stability anchor within diversified allocations.
SG Trend Index
+4.7 percent for January and +8.2 percent for the trailing quarter. YTD +4.7 percent. Since 2020 the index is up 56.0 percent with a 7.6 percent CAGR and a 20.4 percent drawdown. The large-programme trend benchmark participated fully in January’s broad-based rally, building on the constructive close to 2025.
SG CTA Index
+4.7 percent for the month and +6.3 percent for the trailing quarter. YTD +4.7 percent. Since 2020 the index is up 35.9 percent with a 5.2 percent CAGR and a 16.3 percent drawdown. Broader CTA blends matched the pure trend benchmarks in January, signalling strength across a wider range of systematic strategies.
TTU Trend Following Index
+4.5 percent for January and +7.5 percent for the trailing quarter. YTD +4.5 percent. Since 2020 the index has gained 41.5 percent with a 5.9 percent CAGR and a 21.0 percent drawdown. After pausing in December, the large-ensemble benchmark returned to form with a strong January, reflecting broad participation across its constituent programmes.
IASG Trend Following Index
+4.3 percent in January and +8.7 percent for the trailing quarter, leading the rolling three-month window. YTD +4.3 percent. Since 2020 the index has gained 62.1 percent with an 8.3 percent CAGR and a 14.9 percent drawdown. IASG continues to deliver an impressive balance of consistency and growth, carrying momentum from its 2025 calendar-year leadership.
Systematic Momentum CTA Index
+3.9 percent in January and +6.5 percent for the trailing quarter. YTD +3.9 percent. Since 2020 the index has gained 33.6 percent with a 4.9 percent CAGR and a 16.7 percent drawdown. Momentum strategies participated in the January rally, with the index posting its strongest single-month gain in recent quarters.
Performance Snapshot
The January VAMI chart shows Classic Trend Index pushing decisively above the 2,400 level, extending its separation from the broader trend-following universe. The remaining benchmarks continue to cluster between roughly 1,340 and 1,620 since 2020, though all moved higher in January.
Dispersion at the monthly level compressed significantly in January, with the gap between the strongest and weakest performer narrowing to just 1.1 percentage points. At longer horizons, however, Classic Trend’s cumulative lead remains commanding, now exceeding 140 percent since inception.
Statistical Highlights
Classic Trend Index continues to dominate long-term risk-adjusted statistics. It maintains the highest CAGR at 15.5 percent and leads across MAR (0.98), Sharpe (0.93), and Sortino (1.82) ratios. Its ability to compound while recovering efficiently from drawdowns remains unmatched across all benchmarks.
Barclay BTOP50 again stands out as the most stable benchmark, with the lowest maximum drawdown at 9.7 percent and the highest winning month ratio at 63.0 percent. January’s 5.0 percent gain demonstrated that stability need not come at the expense of upside participation.
IASG TF leads the trailing twelve-month window at 9.5 percent, while Classic Trend retains leadership across all longer horizons. Correlation to global equities remains low across all benchmarks, ranging from −0.03 to 0.08, underscoring the diversification benefits of systematic trend exposure.
January Reflections
January delivered a rare moment of unanimity across the trend-following landscape. All seven benchmarks advanced, dispersion compressed, and the breadth of gains suggested that trending conditions extended across multiple asset classes and timeframes. For allocators, it was a welcome reminder that trend following can deliver meaningful returns in concentrated bursts.
The month also reinforced a structural observation. When trends emerge with clarity, even the more conservative benchmarks participate. BTOP50’s 5.0 percent gain, matching Classic Trend for the monthly lead, illustrated that stability-oriented allocations need not sacrifice upside when conditions align.
For allocators, the message at the start of 2026 remains familiar. Combine engines of long-term compounding with sources of structural stability. Classic Trend continues to provide the engine. BTOP50 continues to provide the ballast.
“2026 opened with a statement: when trends align, the entire systematic universe moves together. Breadth like this rewards those who stayed positioned.”
About the Indexes
- SG Trend Index
Created by Société Générale, the SG Trend Index represents the largest trend-following CTA programs, focusing on systematic strategies with significant AUM. It captures broad market movements across various assets. More on SG Trend Index - Barclay BTOP50 Index
Managed by BarclayHedge, this index follows the largest investable CTAs, emphasizing diversification across major futures markets. It’s a widely referenced benchmark for managed futures. More on BTOP50 Index - TTU Trend Following Index
Developed by Top Traders Unplugged, the TTU TF Index includes programs with a 15-year track record, emphasizing resilience through experience and diversification across a large ensemble of programs. More on TTU TF Index - SG CTA Index
Another index by Société Générale, the SG CTA Index covers a broader array of CTA strategies, providing insight into the managed futures landscape beyond trend following alone. More on SG CTA Index - IASG Trend Following Index
This index, managed by IASG, tracks CTAs that primarily use trend-following strategies, offering a focused benchmark within the managed futures space. More on IASG TF Index - Classic Trend Index
The Classic Trend Index, curated by the Aussie Turtles, is a benchmark for traditional trend-following strategies, focusing on consistent, systematic approaches across diversified asset classes. More on Classic Trend Index - Systematic Momentum CTA Index
Managed by NilssonHedge, this index tracks CTAs focused on momentum-based strategies, providing a purist view of momentum trading within managed futures. More on Systematic Momentum CTA Index
Stay tuned for next month’s Battle of the Trend Following Indexes to see which benchmarks emerge as the top performers in the trend-following landscape.
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