tag:blogger.com,1999:blog-26012405.post96089297728407208..comments2024-03-10T12:27:40.157+00:00Comments on the trend follower: Trading frequencyUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26012405.post-23753757415523825432014-07-06T22:36:20.051+01:002014-07-06T22:36:20.051+01:00Most traditional trend following strategies trade ...Most traditional trend following strategies trade a small basket of commodities, interest rates, indices etc. As I predominantly trade equities, I want to increase the odds in my favour. Therefore, if the general market is in an uptrend, then my bias would be to trade equities on the long side. If the indices were in a downtrend, I would look to trade equities in the same direction. To me that is just common sense, and increases the odds of a successful trade. For example, would you try and trade equities on the long side in 2008, when the market was in a strong downtrend? There would be more stocks trending downwards than upwards, so the odds play would be to look for potential short candidates.<br /><br />As my potential universe of trading candidates run into the thousands, and no trader has an infinite amount of capital, there needs to be some filter applied - you cannot trade all signals in all stocks. So your basic approach to trade selection needs to be different to someone who trades the basket of 20 instruments.Trader Stevehttps://www.blogger.com/profile/07875469634283453010noreply@blogger.comtag:blogger.com,1999:blog-26012405.post-85739944741421363032014-07-06T21:41:15.853+01:002014-07-06T21:41:15.853+01:00this is where confusion lies for me. Trend followe...this is where confusion lies for me. Trend followers speak of taking all trades and allowing price to determine entry, and not the market. So why would a certain market bear any decision making? for the trend could develop within that time, and you would not be on board.Anonymousnoreply@blogger.com