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2016issue C0548

Trend process versus end-goal trading

The archive treats a favorable completed result as insufficient proof that the prescribed procedure was followed. Trend rules are presented as one entry, exit, and stand-aside decision process, not as a way to steer a trade toward a fixed destination.

  • A favorable completed result is treated as insufficient proof that the prescribed trading procedure was followed.
  • Trading is characterized as work in which adhering to a defined decision process is the primary requirement.
  • A trend-following stance is described as incompatible with steering toward a fixed end goal; after entry, the method is to let conditions unfold rather than impose a destination.
  • Trade-setup scanners filter candidates by setup type and by historical statistical screens, and a swing-horizon scan is described as helping decide when to restrict losses and when to remain with working positions.
Entries in this reading3 entries
Current trackTrend following168 readingsPre-trade checklist245 readingsTrading psychology process376 readings

Process is the requirement

A favorable completed result is treated as insufficient proof that the prescribed trading procedure was followed. Outcome versus process separates whether a trade paid from whether the prescribed procedure was followed.

Trading is characterized as work in which adhering to a defined decision process is the primary requirement. That decision process is the full sequence of entry, exit, and stand-aside rules treated as one procedure rather than as isolated calls.

Trend following and end-goal orientation

A trend-following stance is described as incompatible with steering toward a fixed end goal. End-goal orientation steers or judges a trade by a predetermined destination instead of by the system's continuing conditions.

After a trend position is taken, the described method is to let conditions unfold rather than impose a destination. A trend-following system stays with directional persistence for the system's holding period and stands aside when those conditions fail.

Trend direction is presented as foreseeable only over a limited horizon, while remaining with a trend is presented as possible for as long as that trend persists.

The setup checklist

A setup checklist is a pre-trade filter that turns market state and execution constraints into a go, no-go, or wait signal. Trade-setup scanners in the same item let users filter candidates by setup type and by historical statistical screens.

Intraday setup designs can attach a range of stop and target choices to the same identification step. A swing-horizon scan is described as helping decide when to restrict losses and when to remain with working positions.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
32 of 38 in the Trend following track
201760-61 pp.Next on Trend followingGold as a classroom for one midterm-trend procedureThe case study places a midterm-trend between multi-year ownership and selling on intervals of seconds or minutes.
All readings on this track · 38 readings
  1. 1986A Marshall Wave book is assembled one confirmed stance at a time
  2. 1987Operator gut check when two systems conflict
  3. 1988Visual trend rules need one testable procedure
  4. 1988Audit trend and breakout rules sold without tests
  5. 1992Weekly 4 percent close reversal case study
  6. 1992Write down the plan, then wait for the cross
  7. 1994Constructing a three-rule moving-average system
  8. 1995Weekly long-only trend rules with a gated retracement exit
  9. 1997Constructing rainbow charts with repeated smoothing
  10. 1997Three-line break as a one-parameter mechanical filter
  11. 2000Nested horizon trend alignment with a momentum stack
  12. 2001When certainty turns off the stop
  13. 2001Price must confirm every setup
  14. 2001Constructing a color stack from every lookback
  15. 2002Evaluating mechanical trend signals from ten-session average excursions
  16. 2004Trend pullbacks with a fifty-day average and relative strength index
  17. 2005Stochastic overbought as a trend-regime state
  18. 2005Trend-following as one testable signal procedure
  19. 2007One checklist for entry, exit and abstention after a market switch
  20. 2008Parallel listings and divergent trend behavior
  21. 2008Recovery headlines versus trend-regime rules
  22. 2008Constructing an intraday trend procedure with confirming close, retest, and planned exits
  23. 2010Mechanical trend-following system design, stops, and validation
  24. 2010A trading-plan that sets entry, stop, trail, and pause together
  25. 2010Multi-horizon cycle signals, trend filters, and stops
  26. 2012Weekly bear-market and shock signals as a mechanical procedure
  27. 2013A 2013 rates week as a structure-first exit drill
  28. 2013Trend following as one testable procedure
  29. 2013A forex veto checklist: trend, pair economy, and crowd bias
  30. 2015Relative-strength-index rules under a 20-percent trend filter
  31. 2015Trend-gated oscillator entry and exit rules
  32. 2016Trend process versus end-goal trading
  33. 2017Gold as a classroom for one midterm-trend procedure
  34. 2017Falling-knife FX longs wait for a four-hour trend turn
  35. 2018A closed procedure for quarterly sector rank slots
  36. 2018A recursive median as shared state for trend rules
  37. 2020Moving-average construction as an objective trend filter
  38. 2020Constructing first and second cross trend entries
By fieldDecision process416 readingsBy year2016134 readings
All 168 readings tagged Trend following
Also on Trend following5 readings
1992Write down the plan, then wait for the cross2007One checklist for entry, exit and abstention after a market switch2013A forex veto checklist: trend, pair economy, and crowd bias2001Price must confirm every setup2006Relocating trading certainty to the decision process