Trend following system is dead.
There is no black and white in this thread....just different shades of grey.
I believe that the era of trend following is over unless there is a particular imbalance in a market that overrides everything else.
Another exception would be if we were to enter a major inflationary or deflationary environment.
In other words, unless there is some very powerful force that can overwhelm everything else.
The markets have changed during the past five to ten years because professional money managers now account for a much greater proportion of speculative trading activity, as opposed to small speculators who tend to make all the mistakes.
The trend following systems approach doesn't work anymore.
There is no black and white in this thread....just different shades of grey.
I believe that the era of trend following is over unless there is a particular imbalance in a market that overrides everything else.
Another exception would be if we were to enter a major inflationary or deflationary environment.
In other words, unless there is some very powerful force that can overwhelm everything else.
The markets have changed during the past five to ten years because professional money managers now account for a much greater proportion of speculative trading activity, as opposed to small speculators who tend to make all the mistakes.
The trend following systems approach doesn't work anymore.
I come from the future.