What is Trend Following?
In this glossary, Trend Following refers to: An investment strategy that seeks to capture gains through the analysis of an asset’s momentum in a particular direction, commonly used in managed futures and systematic funds.
How is Trend Following used in finance?
In finance communication, this term appears in contexts such as: "Trend following strategies are widely used by commodity trading advisors and hedge funds to systematically exploit price momentum."
Why does Trend Following matter in finance?
Trend Following matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Trend Following?
Trend Following is mainly used by Financial Analysts, Bankers, and Traders.
What category does Trend Following belong to?
In this glossary, Trend Following is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.
