Talk:Trend following

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Finance & Investment Mid‑importance

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Examples of trends?

Wikipedia talks about trends and describes them in the abstract. There are no applications of the trend descriptions or concrete examples of trends. Bullishcharts.com gives readers VISUAL examples of trends. Phanorb 20:59, 29 April 2007 (UTC)[reply]

Feel free to draw up an exciting chart and upload it. Links to random sites are not needed. Kuru ^talk 21:49, 29 April 2007 (UTC)[reply]

No counter point?

A trading system must always break down otherwise a computer program could be implemented to suck up all the wealth of the markets... Thus where is the counter point to this Trend following article? This also goes to the Richard Dochian entry. I am raising this issue since there are commercial operations that make money advising and selling trading systems. This wiki seems like an advertisement for Trend following trading systems. —Preceding unsigned comment added by Bfisk (talk • contribs) 05:44, 11 January 2008 (UTC)[reply]

It should be noted that there is a large amount of criticism and that there is little prove that such strategies work. As the comment above reads; Trading systems tend to break down. —Preceding unsigned comment added by 190.166.73.118 (talk) 19:48, 22 September 2008 (UTC)[reply]

Please see Michael Covel's 2009 version of Trend Following for evidence of audited trend following results. The statement that there is little proof is dubious. This book alone provides results of numerous traders who use this system to include multiple year comparisons.

If you intend to pose a counterpoint, I would suggest you further quantify what a "break down" is defined as. Currently your statement is vague and open to interpretation. Systematic trend following systems don't necessarily "break down". They perform as programmed based on rules for entry, exit, position size, and risk management. If the system breaks down, it is human error based on someone undisciplined in following the system's instructions. System override is a breakdown.--Jaywelliott (talk) 01:17, 10 June 2010 (UTC)[reply]

You can't "suck up all the wealth" with a trading system. It would have to trade such large size that it would run into liquidity problems and position limits. Furthermore trend-following systems suffer through long and deep drawdowns that shake off the weak hands. Ultimately, it is a person who is putting capital at risk, not a computer program.78.157.86.6 (talk) 13:32, 29 October 2018 (UTC)[reply]

References

You should cite the 'Time series momentum' paper by Moskowitz and colleagues and incorporate its findings. It's sort of the start of academics looking at this trader's technique. – ishwar (speak) 01:33, 27 March 2015 (UTC)[reply]