Strategies designed to capture sustained directional price movements.
This scope is designed to help you build a practical understanding of Trend Following. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
A structured overview of cross-asset trend following, covering its core logic, system design, and risk management within a disciplined trading framework. The article explains how diversified markets, volatility scaling, and robust controls shape repeatable implementations without prescribing signals or trade recommendations.
A clear, practical treatment of position sizing within trend following systems, covering the logic behind risk-based sizing, volatility adjustment, portfolio heat, and scaling rules that support durable, repeatable execution without prescribing specific entries or exits.
A rigorous look at frequent errors that undermine trend following systems, why they occur, and how disciplined design, testing, and risk management reduce their impact within a structured trading process. No signals or recommendations are provided, only conceptual guidance.
Trend following captures sustained directional moves but faces structural limits in noisy, shifting markets. This article defines the constraints that shape performance, explains the core logic of the approach, and shows how these limits inform risk management and system design.
Trend following is a systematic approach that seeks to participate in persistent directional moves in markets by reacting to price behavior rather than forecasting it. This article defines the concept, explains the logic behind it, outlines risk management considerations, and presents a high-level example of how a rules-based trend strategy operate…
