
Trend trading has gained attention for its ability to capitalize on market momentum, allowing traders to achieve larger profits compared to counter-trend strategies. Trend traders typically maintain positions above key moving averages, with variations for different trading styles: position traders above the 50-day moving average, swing traders above the 10-day exponential moving average, and day traders focusing on shorter timeframes. Recent analysis indicates that trend-following strategies are expected to perform well over the next decade, with futures trend-following showing a year-to-date increase after a notable performance in 2024, which saw a rise of 72%, marking the best results since 1990.
Trend-following prospects look good, at least in the next 10 years. Futures trend-following is slightly up year-to-date, after the best performance in 2024 since 1990, +72%, for our strategy and futures universe. More details 🔽 https://t.co/rBwnKet6Gt https://t.co/isvrY3SqiI
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Over time, I have found that staying positioned for trend continuation (long in uptrends and press those positions on the way up) is much more profitable than speculating on trend reversals (trying to call tops or short uptrends).