Trading Strategies
Trend Following
Trading in the direction of the prevailing move and holding while it persists, taking many small losses for occasional large winners.
In plain English
Trend followers do not predict; they join. Entries trigger on strength (higher highs, moving-average alignment), exits trail behind the move, and the edge lives in the fat tail of trends that keep going.
Inside prop rules the friction point is drawdown style: intraday trailing drawdowns punish giving back open profit, which is precisely what trailing exits do. Trend traders fit best on end-of-day drawdown accounts where a winner can breathe intraday.
- A trader rides a trending CL session with a stop trailed 30 cents behind price, banking a $2 run on the one day that trends after four scratch days.