178: Nick Radge – The Blueprint: Create a Simple Trend Following System
Chat With Traders
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Trend Following and Its Classic and Relative Momentum
There's two types of trend following and I guess if we're going to get pedantic trend following is a diversified portfolio of commodities traded on an absolute basis. If you like individual stocks whether it be cotton or commodities whatever it may be on their individual that's called absolute trend following, the classic one. The other one we would call relative momentum it's still the same philosophy is trend following in that it by strength it sells weakness It rides winners they cuts losses okay butrelative momentum is looking at the strength of one instrument measured directly against the strength of a basket or a universe of similar interests.
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