Ep. 746: Trend Commandments with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Philosophy of Trend-Following
William Donegan gave us some of the earliest articulated insights into the philosophy behind trend-following. Richard Doncian, as most traders are aware, did much more than write about Trend Following. Every good trend following method should automatically limit the loss on any position, long or short, without limiting the gain. Whenever a trend, once established, reverses quickly, there is always a point at which evidence of a trend in the opposite direction is given. At that point any position held in the direction of the original trend should be reversed, or at least closed out with a limited loss.
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