Feedback on Trend Following:
“A frequent (and valid) criticism of the book Trend Following is that its author often says the word “trend following” when in fact what he means is “mechanical systems trading” in general — forgetting that there [are] several major classes of mechanical systems, only one of which is trend following.”
No, that’s not what I mean. The book Trend Following is about long-term trend following trading. It lays out with detail the men who trade this way. Most trend followers are systematic, but the decision to systematically trade comes only after making the decision to trade as a trend follower. Trend following trading is a style. It is a method based on a philosophy. On the other hand, “systems trading” means nothing in the abstract unless you define what kind of system it is.