Hi Markus --

All trades are trend following for the time they are held -- but the
conditions that describe the entry are either mean-reverting or
trend-following depending on whether the system buys weakness or buys
strength, respectively.

Under some conditions, mean reversion systems are preferable to trend
following systems.  You will need to test your system on the data you plan
to trade.  And you will need to evaluate the performance as measured by the
metrics that are important to you.  Psychologically, some people prefer
trend-following, just a some people always buy and never short.

Thanks,
Howard

Reply via email to