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Investment

What is Trend Following?

Trend Following An investment strategy that seeks to capture gains through the analysis of an asset’s momentum in a particular direction, commonly used in managed futures and systematic funds.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Trend Following” Used in Practice?

Trend following strategies are widely used by commodity trading advisors and hedge funds to systematically exploit price momentum.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is Trend Following?

An investment strategy that seeks to capture gains through the analysis of an asset’s momentum in a particular direction, commonly used in managed futures and systematic funds.

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