The Trend is Your Friend

Trend Is Your Friend, So They Say

If you have looked for trading advice in books or on the internet, you have probably come across the phrase “The trend is your friend”. This is one of the most widely accepted (and most widely reproduced) pieces of trading wisdom. Its core idea is that (in the long run and with a sample of many trades) you have a much better chance for a profit if you take positions in the direction of the current trend in the market.

Trend Following

A whole big group of quantitative trading strategies is based on this idea – these strategies are being referred to as trend following. Some big funds base their strategies on the trend following concept.