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Trend following
Is multi-market trend following the same method as a moving average on one coin?
Multi-market trend following · Diversified trend following
What it bets
Many markets each take a small trend bet. Together, that is closer to what a trend-following fund does than one moving average on one market.
How the rule is written
Run the same kind of trend rule at the same time on many markets with low correlation, both long and short, with the risk on any single market kept small. The profit comes from the few markets that run a large trend. The loss comes from small givebacks in most of the others. One trading pair is not this method.
When it fails
When markets chop together, or suddenly become highly correlated, the small bets turn into one large bet.
Do not confuse it with
A dual moving average, the turtles, and time-series momentum can all be signals inside it. The method itself is the portfolio, not the name of one indicator.