A summary of what trend following can't do (and what it can)

A good trend following approach will include the following factors:

• What market are you looking to buy or sell (what markets are in your trading portfolio?);
• When do you buy and sell a position (what are your entry rules?);
• How much to buy or sell (what are you risk per trade levels and your overall account risk levels?);
• When to exit a losing position (where is your initial stop placed?); and
• When to exit a winning position (what are your exit rules?)

These are the basic parameters of any trend following system, and are set at the discretion of the trader.