Trading System, Trend Following

TME 030: Market Trends


Market Trends

We have talked a lot in the past about trend following but how do we find market trends? We can talk about a method all day long but it would also be good if we talked about how to do it. Markets trend up and they trend down. How do we find those market trends?

To some people the market is like a rollercoaster. I’m not the type of person that likes rollercoasters. Sometimes when you go to the movie theater they put up a simulation of a rollercoaster on the screen. If I follow that close enough I feel like I’m getting sick.

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Trend Following

TME 029: ETF Trading


What is An ETF?

An ETF or Exchange Traded Fund is a marketable Security. An ETF can track an index, a commodity, a bond, or a basket of companies. ETFs typically have lower fees than mutual funds. They trade like stocks. The price of an ETF changes throughout the day.

What is ETF Trading?

If you could come up with a fund that is perfect for the small trader it would be an Exchange Traded Fund. Mutual funds have been around for years for the buy and hold investor. Mutual funds offer diversification to the buy and hold investor.

ETFs have been around since the early 80’s but they have gained popularity just recently.

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Trend Following

Systematic Trend Following

What is Systematic Trend Following?

Systematic trend following is trend following with formulas. To understand systematic trend following we first need to understand what systematic is.

When someone says Systematic what does it mean to you? When someone says Systematic Trend Following what do you think of? The dictionary defines systematic as:

“acting to a fixed plan or system; methodical”

So systematic trend following is methodical trend following.

In trading there are many styles. Some are discretionary and some are systematic.

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