Is it important to understand why Trend Following works (ie what are the sources of its profitability)? I believe yes. Because markets are non-stationary (changing all the time), their characteristics – including those at the root of Trend Following profits – are changing too. Understanding these market characteristics is a first step towards […]
Entries Tagged as 'options'
February 24th, 2010 · 13 Comments · Data, Strategies, Trend Following
January 26th, 2010 · No Comments · Futures
Locked-limit panicked trader? photo: artemuestra@flickr Every prudent trader will ensure they minimise their risk by placing stop-loss orders where they should get out of the market. This is one of trading basic truths: Cut your losses short. However there is one case where the Futures market will not let you exit at any price: when […]