General Trend Following strategy

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A trend-following strategy revolves around identifying and trading in the direction of prevailing market trends. Traders utilizing this strategy aim to capture significant price movements and profit from sustained trends in the market. One of the key advantages of trend following is the potential to capitalize on substantial price swings and take advantage of strong market momentum. By aligning trades with the prevailing trend, traders can increase their chances of profitability. However, trend-following strategies heavily rely on accurate trend identification, which can be challenging. Traders employing this strategy need to exercise disciplined risk management to avoid significant losses. Successful trend following also necessitates diligent monitoring of prices and the market and an exceptional ability to adapt to changing market conditions.​