Opensource trend-following systematic trading algorithms based on top trend following traders (Richard Dennis, Olivier Seban and Nick Radge).
Trend following is when you try to capture extended moves in the financial markets, either up or down, mostly for long-term gains. Once in a while prices tend to keep on going (enduring) and these are the moves trend followers like. The aim is to capture most of such moves, not all, but the majority of them.
Trend followers are not trying to predict tops and bottoms. They are not trying to predict anything, really. The aim is, quite simply, to take advantage of moves in different asset classes in the anticipation that some of the positions go their way big time. There is zero forecasting involved.
Trend followers might use different time frames and many asset classes to diversify in order to avoid big drawdowns. Having different strategies is important for a trend follower.
Trending following works best for long-term trends persisting over multiple market cycles, although they can still be exposed to a number of risk factors and short term reversals. Examples of such markets are stock indexes (S&P500, NASDAQ100 or DJI) and the two main cryptocurrencies (Bitcoin and Ethereum).
What is a trend?
A trend refers to the general direction in which the price of an asset is moving over a period of time. Trends can be classified as upward (bullish), downward (bearish), or sideways (neutral). Traders often try to identify and follow trends to make informed decisions about buying or selling assets.
Basic rules of trend following
These three principles are the basic building blocks of all successful trend following strategies. That’s not the point to predict where the market will go, but rather to react to its changes. The goal is to use the big and prominent ones to our advantage market movements.
“Being fully invested when the market is rising and reverting to cash during a sustained bear market is not about predicting or timing the market. It’s about reacting to the current market trend and then positioning oneself accordingly.” Nick Radge
We are small team of freelance software developers and trend follow momentum base algo traders on cryptocurrencies and US stocks market.
We specializes in developing custom algo trading strategies and indicators in many trading platforms as TradingView, cTrader, TradeStation or MultiCharts.
You can hire us for consulting/developing algotrading systems.
Discord: Trend-follow.io