TrendFollowing

OpenFintech

Trend Following

Trend Following exploits market momentum, betting, long or short, that securities will persist in their current direction.

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Need Tips?

For trend following, select tickers with consistent, strong trends and high liquidity. With Finviz, a straightforward screening tool, you can easily identify these patterns. Up or down channels are great for trend following strategies, where you can capitalize on price movements continuing on a trend, offering more lucrative trades.

To set the right range in your trading strategy, choose select the type and value for short and long Range indicators, each pivotal in market analysis. Opt for either a Simple Moving Average (SMA) or an Exponential Moving Average (EMA) to track trends more accurately.

Learn to set optimal stop-loss percentages to protect your capital from significant losses. Equally important is determining take-profit levels to secure gains. Understand that a higher risk threshold often involves a larger stop-loss value, allowing more room for market volatility. Conversely, setting quicker take-profit targets can be a sign of lower risk tolerance, aiming to capture profits early and reduce exposure.
Warning: Not Real Trading
Simulated Backtesting: No Fees, Ideal Conditions

It's important to note that real-world markets involve transaction fees and other costs, which can significantly impact profitability. Real markets also present more complex challenges and volatility. However, these ideal setting allows for a clearer understanding of market mechanics.

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Dont have a key?

If you don't have a key, you can either use "demo" by default (restricts ticker to IBM) or get an Alphavantage API key for free here. (e.g. 6X7DHBFDYTBAM1U8)

Project Contributors

Bassil Ahmad

Lead Engineer

Harri Sivakumar

Lead Engineer

Ken Wu

Developer

Justin Torti

Developer

Jiayou (Sam) Zhong

Developer

Sarah Xiao

Developer

Anusheh Atif

Frontend Developer

Isaac Addai

Frontend Developer