how do you define a trend?

[tiger2014]

Hi chrism2671,

I want to know how do you identify a trend from a sideway. If we use ema cross, an fake trend is very common.

Thanks

[chrism2671]

@tiger2014 You don't. That's the nature of the strategy, you make a lot of little losses every day, and get a big payout every once in a while that offsets it.

With diversification, a lot of these little losses cancel out.

[westonplatter]

@tiger2014 this is likely what you're after, https://github.com/chrism2671/PyTrendFollow/blob/master/trading/rules.py#L179

[tiger2014]

Thanks