A trend-following strategy enters long when the market breaks above its all-time high, then exits when price closes below the 10-day moving average. The edge is simple and rule-based: ride the strongest trends with a clear exit signal.
All-time high brings in the strongest trading edges. If the market is breaking through all-time high, the edge is probably the strongest you can find with trend following. Once this resistance is broken, you enter the trade. And then, as we all know, trend following is about sticking with your position as long as possible. And for this, you can only use 10-day moving average. For live management. Exactly. Basically, once the market closes below your 10-day moving average, you get out of the position and you call the trade done.
