© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023
P. LiuQuantitative Trading Strategies Using Pythonhttps://doi.org/10.1007/978-1-4842-9675-2_5

5. Trend-Following Strategy

Peng Liu1  
(1)
Singapore, Singapore
 

Trend following is a popular investment strategy used in all types of markets, including stocks, bonds, commodities, currencies, and even cryptocurrencies. As its name suggests, this strategy is based on the assumption that prices tend to move in a particular direction (or “trend”) over time, thus offering opportunities to capitalize on these movements. At its core, trend following involves analyzing historical price data to identify potential trends. The strategy then recommends taking positions that ...

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