Equities

Historically the least profitable sector, equities tend to have a more choppy and less trend prone behavior. The main value of including equities in a trend following diversified strategy is that it has acted as a stabilizer in the past and it helps bring down the long correlation of the strategy against traditional assets. It does this mainly by the effect it has during bear market runs.

Since the public generally hear more about the equity markets than any other sector, many focus on this asset class for the wrong reasons. Equities are not safer, more profitable or otherwise more prudent than any other assets class. Treat them all the same and you get the best result over the long run.