# Trend Following

*Trading & Technical Analysis — Finicade finance glossary*

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.

**Also known as:** managed futures, CTA, momentum trading

**Related terms:** [Moving Average](https://finicade.com/glossary/moving-average), [Momentum Factor](https://finicade.com/glossary/momentum-factor), [Trailing Stop](https://finicade.com/glossary/trailing-stop), [Expectancy](https://finicade.com/glossary/expectancy), [Drawdown](https://finicade.com/glossary/drawdown)

Source: https://finicade.com/glossary/trend-following