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Trend following captures large moves and offers high win-loss ratios. Drawbacks include frequent small losses in sideways markets. Adapt by using volatility filters and scaling back during low-volume sessions.
What are the key advantages and drawbacks of using trend-following strategies in prop trading, and how do traders adapt them to different market conditions?
Trend following captures large moves and offers high win-loss ratios. Drawbacks include frequent small losses in sideways markets. Adapt by using volatility filters and scaling back during low-volume sessions.