Trend Following Is Not Predicting

Discussion in 'Strategy Building' started by kut2k2, Sep 8, 2015.

  1. kut2k2

    kut2k2

    That's it in a nutshell. The trend follower determines if there is a trend NOW and if there is, he bets accordingly. Can he lose? Of course, but he is playing the odds: bet on the most likely outcome always and in the long run, he wins. Like betting with a biased coin.

    When a trend follower trades, he isn't forecasting a damn thing, he is playing the odds.

    I really can't put it any simpler than that. Either one gets it or one doesn't.
     
    Last edited: Sep 8, 2015
    #31     Sep 8, 2015
    themickey likes this.
  2. jsp326

    jsp326

    The public also has no sell discipline. Nor do they trade in a double-digit number of markets to diversify.

    Go shut up and color.
     
    #32     Sep 8, 2015
    themickey and kut2k2 like this.
  3. " I personally believe that trading with the trend is virtually a sure thing, the biggest uncertainty being whether the trend follower is detecting true trend or false trend (chop). "

    So funny! Great!

    Is this part still called predicting " the biggest uncertainty being whether the trend follower is detecting true trend or false trend (chop). " ?
     
    #33     Sep 8, 2015
  4. Redneck

    Redneck


    K2

    There are a few trader disagreeing with you - that I respect

    But on this one..., I'm going with you

    ===============

    It's a mindset for me

    I predict; - there an associated..., innate..., outcome - I could (and have/ do) easily find myself expecting to occur

    An expectation if you will

    Then when it doesn't happen.., I could be let down / disappointed / reluctant to continue / repeat my routine


    I anticipate; - I roll with it - works out cool...., doesn't work out/ breaks down - cool

    Either way - no hard feelings..., no reluctance to try again

    I have / hold absolutely no expectation

    ==============

    I've also found - with a mindset of predicting - I have a bias (and I can't shake it no matter what I do)

    Whereas with a mindset of anticipation - price imparts its bias upon me (leaving me totally out of the picture)

    Having said this; I don't trade trends (a trend / the trend/ whatever trend)

    I exploit moves

    ============

    For me - it all about a mindset;

    One way..., it impedes the hell out of me

    The other..., frees me up to trade - win..., lose..., or draw

    jmho

    RN
     
    #34     Sep 9, 2015
    kut2k2 likes this.
  5. schizo

    schizo

    Up Trend = Higher Low + Higher High
    Down Trend = Lower Low + Lower High

    What more is there to argue about? So many wasted words for nothing, IMHO.
     
    #35     Sep 9, 2015
  6. kut2k2

    kut2k2

    FFS give it a rest. If you don't like the topic, just hit the back button instead of telling us what not to talk about.

    If you want threads like this to stop, then tell people like marketsurfer to stop trash-talking trend following and other good stuff about trading. It's the trolls who start these thread battles so go yell at them.
     
    #36     Sep 9, 2015
    themickey likes this.
  7. Chris Mac

    Chris Mac

    True, if you know :
    1 how to jump in a new trend
    2 how to pyramid.

    Alas, majority does the opposite, waiting too long before entering and investing heavily at the end of the trend.
    So trend-following is always detrimental for the majority, and is smart-betting for few people.

    CM
     
    #37     Sep 9, 2015
  8. i960

    i960

    It's a dumb statement because it's the embodiment of a strawman argument. In essence, using a faintly related thing to argue or attempt to discredit something else entirely.

    Just because Joe public doesn't know how to trade in the most effective fashion doesn't mean that's what trend following is about.
     
    #38     Sep 9, 2015
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  9. i960

    i960

    Aka TREND FOLLOWING.
     
    #39     Sep 9, 2015
    kut2k2 likes this.
  10. EMA's/crossoves and linear regression etc are good on trend days.
    Get killed in chop days, though
     
    #40     Sep 9, 2015
    bashatrader likes this.