Trend Following

In February 2006, I gave a presentation to the Computerized Investing Group of the Boston chapter of the American Association of Individual Investors on the topic of how to use the MIDAS methods and their supportive techniques in the trend following style of trading. I summarized it with 13 bulleted points, specific directions, on how to do this kind of trading. Looking at that now, I see it has held up quite well over these years. So, here are the 13 steps, with only minor edits to bring them fully into line with my earlier chapters of this book. These directions were written for trading on the long side—purchasing a stock—rather than short selling, but it should be obvious how to recast it for trading on the short side.

Trend ...

Get MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.