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The Importance of Trend Followers
Tom Baso: Trend following is driven by the fact that there are asymmetrical returns. He says sometimes when I total up all of the trend stat trades over an entire year, maybe two or three of the trades paid for all the profits. If you then make the assumption that there's always an end to a sideways period, there'salways an end to the profitable period,. Then it makes sense to look at a trend follower who's trading lots of markets.