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I have tried to prepare (best of my knowledge) a small FAQ on Trendfollowing. For more details you may read http://www.trendfollowing.com by @Covel
Also liberty of tagging @WeekendInvestng
& @Trendmyfriends whome, I consider as best TF in India
Slightly length..But do read it
Also liberty of tagging @WeekendInvestng
& @Trendmyfriends whome, I consider as best TF in India
Slightly length..But do read it
What is Trend following(TF) ?
âTFâ or "Be on The Right Sideâ is a trading system based on the principal of price analysis TF tries to take advantage of long, medium or short-term moves of the market
The objective of TF is to produce absolute returns irrespective bull/bear
âTFâ or "Be on The Right Sideâ is a trading system based on the principal of price analysis TF tries to take advantage of long, medium or short-term moves of the market
The objective of TF is to produce absolute returns irrespective bull/bear
Why no prediction ?
Trend following is all about mathematical odd in your side. It is all about finding a consistent edge with no guess, hunches or âPredictionâ
What is the basic Principal of TF?
TF beleive in âPlan your trade & trade your planâ & follow
principals - :
Trend following is all about mathematical odd in your side. It is all about finding a consistent edge with no guess, hunches or âPredictionâ
What is the basic Principal of TF?
TF beleive in âPlan your trade & trade your planâ & follow
principals - :
â˘Strict Money & Risk Management
â˘Riding the Trend & âNo Predictionâ
â˘Emotionless Mechanical Execution
â˘Discipline & Consistency to follow the System
What are the asset classes?
Asset Class are Equity index and stock Future, Commodity future, currency future etc
â˘Riding the Trend & âNo Predictionâ
â˘Emotionless Mechanical Execution
â˘Discipline & Consistency to follow the System
What are the asset classes?
Asset Class are Equity index and stock Future, Commodity future, currency future etc
Who should follow âTFâ?
â˘Those who want to make money in bull & bear market
â˘Portfolio investor who is willing to hedge his risk &also wants to participate in market rally
&it is not 4
â˘Person wants to earn QUICK money
â˘Person who believe in prediction
â˘Day-trader
â˘Those who want to make money in bull & bear market
â˘Portfolio investor who is willing to hedge his risk &also wants to participate in market rally
&it is not 4
â˘Person wants to earn QUICK money
â˘Person who believe in prediction
â˘Day-trader
When TF works?
It works best in trending mkt TF objective is to make money from up & down market. Does not work well in sideways mkt
Will too many TF make strategies less profitable?
The profitability of TF will decline only when human greed, fear disappeared.2020 best 4 TF
It works best in trending mkt TF objective is to make money from up & down market. Does not work well in sideways mkt
Will too many TF make strategies less profitable?
The profitability of TF will decline only when human greed, fear disappeared.2020 best 4 TF
How risky is TF?
Life is risky. One can have car accident while cross the street. But if you have concrete plan, risk can be manageable.
What is money mgmt?
It is critical component of TF success. It accesses (PER TRADE)
â˘Risk per trade
⢠quantity to trade on
*amount
Life is risky. One can have car accident while cross the street. But if you have concrete plan, risk can be manageable.
What is money mgmt?
It is critical component of TF success. It accesses (PER TRADE)
â˘Risk per trade
⢠quantity to trade on
*amount
Is Leverage used in trend following?
All great trade following traders use leverage. It is a tool to be used correctly. But TF is not about using reckless leverage. It follows its money management & prudent risk management principal.
Can ot be applied to day trading?
No
All great trade following traders use leverage. It is a tool to be used correctly. But TF is not about using reckless leverage. It follows its money management & prudent risk management principal.
Can ot be applied to day trading?
No
If TF works so well, why strategy is used by so few participant?
1)Indiais a trader & investor driven market at this time.
2)People like prediction backed by great analysis and projection. This stories appeal to investors more than a statement saying to just follow the trend
1)Indiais a trader & investor driven market at this time.
2)People like prediction backed by great analysis and projection. This stories appeal to investors more than a statement saying to just follow the trend
Will prepare more question next week.
However, people are appreciating tactical product in India even for investment & few product are available in platform like small case .
Any feedback or suggestion are welcome..
However, people are appreciating tactical product in India even for investment & few product are available in platform like small case .
Any feedback or suggestion are welcome..
