Trend-following strategies seek to profit from sustained directional price moves in markets. In this analysis, the Trend Ratio and the Directional Indicator are presented as a means of quantifying the "trendiness" of markets at the individual level and in the aggregate. Observe the trendiness of recent and historical market environments and the impact on trend-following strategies in this whitepaper.
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All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
