Developing a Simple Trend Following System
Published October 3rd, 2022
Developing a simple trend following system – want to know more?
In this episode I return to the Chat With Traders podcast to dig deep into developing a simple trend following system.
This includes details about strategy objectives and idea generation, portfolio testing and analyzing results, position sizing and risk management, and execution in a live market.
This discussion should be helpful for anyone interested in riding big market trends. And even if trend following doesn’t appeal to you, then you’ll still pick up useful insights into systems trading.
Listen to the discussion HERE
What is a trend when referring to the financial markets? A trend is simply price persistence in one direction whether that be up or down.
What is trend following? Trend-following is price persistence and the important thing with trend-following is the ability to easily attain a mathematical positive expectancy which is how we generate a profit.
Trend following strategies tend to have a forty five to fifty percent win rate but where the money is made is where those winners are allowed to run, and not to sell too soon. Cut your losses and let your profits run, as they say.
Learn more about how to create a trend following strategy by listening &/or watching this episode of Chat with Traders with Nick Radge and Aaron Fifield on YouTube.