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What is Trend-Following Strategy?

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An approach that follows the direction after it has been established. It does not try to call bottoms and tops; it makes profit by cutting wrong entries quickly and letting correct ones run long. Its win rate tends to be low and results come from the reward-to-risk ratio. A structural weakness is that losses accumulate in sideways markets.

Trend-Following S…follow the direction it is goingendure pullbacks, catch the big move

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Trend-Following Strategy meaning — Trading glossary | MarketSurfer