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Trading & Technical Analysis

Trend Following

Also called: managed futures, CTA, momentum trading

Trend following buys what's rising and sells what's falling across many markets, with no view on value. Its return profile is distinctive: many small losses, a few very large gains, and a tendency to perform well in extended crises when other assets fall together. It requires tolerating long flat periods and win rates well under 50%, which is why most of its practitioners are systematic.

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