How Trend Following Helped Investors Dodge a Brexit Blindside By Stephen Scott

Market participants focused on economic fundamentals were blindsided by Britain’s move to exit the European Union. Trend followers, however, had hints that the market expected the “shocking” Brexit long before last Thursday.

The fundamentals seemed clear: Britain’s extensive trading with other European countries, the nearly 3 million British jobs linked to the EU, the benefit of a stronger united defense against security threats and more global clout both economically and politically all indicated a vote to remain in the EU.

In fact, as the New York Times reported that into the early evening Thursday, the betters put the odds of remaining in the EU as high as 88%.

However, the issue with fundamental data is that you can...