What Is a Trend-Following Strategy? Why Might It Perform Well in Strong Trends but Suffer Repeated Losses in Choppy Markets?

In cryptocurrency trading, trend following is a common trading approach: rather than trying to predict exact tops and bottoms, it looks for entry opportunities after a trend has formed and aims to follow that trend for as long as possible. However, this strategy is not suitable for all market conditions.

First, what is a trend-following strategy?

A trend-following strategy uses price structure, moving averages, or trend indicators to identify market direction, looking

What Is the Sharpe Ratio? How Can You Measure Whether a Trading Strategy’s Returns Are Worth the Risk?

In cryptocurrency trading, a high return does not necessarily mean a strategy is good. If a strategy can generate high returns but comes with sharp volatility and significant drawdowns, we need to ask: are those returns worth the risk? The Sharpe ratio is one tool that can help answer this question.

First, what is the Sharpe ratio?

The Sharpe ratio measures the excess return earned by a portfolio or trading strategy per unit of volatility risk. Generally, the higher the value, the better t

MAGMA | Long 🟢 | Bullish | 15m 24 hours: +22.80% | Volume: 158.6M USDT Long rationale: Price is above EMA200; EMA20/50/200 are in bullish alignment; RSI14 is 56.3; MACD histogram is positive; ADX14 is 26.6; volume is 0.78 times the 20-candle average; trend pullback/continuation. Entry: 0.33772 Stop-loss: 0.325348 Take-profit 1: 0.353185 | Take-profit 2: 0.362464 | Take-profit 3: 0.374835 Entry price is for reference only; do not chase price. This strategy is invalidated if the stop-loss price is reached. This is a technical analysis strategy only and does not constitute financial advice. $MAG

Nov 13: Gold wraps up the week as daily losses extend to 3 sessions

After Fed Governor Waller’s remarks on Tuesday and that evening’s CPI data came in below expectations, gold remained under pressure and continued to fall. Gold prices dropped from $4,146 to a low of $3,852 last night, a decline of nearly $300, leaving gold in a sustained downtrend.

In October 2022, a remark by Powell about rate cuts triggered a frenzy of surging gold prices. Prices began rising from $1,600 and reached a high near $5,596 in early 2026. Now, gold has fallen from its peak of $5,596 to $3,852, a drop of more tha

Bounce prizzzzz

$CLAUDIA This looks ready to me

Taiwan stocks surged nearly 1,400 points at one point in early trading, but closed up just 583 points—the market’s sharp rebound today gave back more than half its gains in the afternoon. #Gate上线台股交易

The weighted index closed at 43,675.12, up 583.25 points (+1.35%), after opening at 43,719.75, reaching a high of 44,489.48 and a low of 43,534.12. Trading value was about 917.8 billion yuan, down significantly from yesterday’s 1.13 trillion yuan; buyers weren’t as eager to chase prices as they were yesterday.
Stock highlights: TSMC closed at 2,350 yuan (+10 yuan, +0.43%), after reaching an intr

Ahhh, have all the hardships of these eight years been for nothing?

Please join for Nvidia's Beaurish Outlook...

It hit 1890, just 6 points short. Looking at this market, it still has to drop to 1362. Hang in there, guys—while the green hills remain, there’s no shortage of firewood.

Only after seeing these three did I realize…
So that’s what it meant, damn…

Didn't eat lunch
Went to get a tattoo

$DOGE SHORT ALERT — 0.06295 SUPPORT AT RISK, 0.06000 NEXT!

Entry: 0.06421
SL: 0.06620

TP1: 0.06295
TP2: 0.06150
TP3: 0.06000

$DOGE is down 4.19%, with sellers maintaining control through lower highs and lower lows. The latest bounce from 0.06295 remains weak and has yet to reverse the bearish structure. Another rejection below 0.06500 could push price back toward support, with a breakdown opening the way to 0.06000.

Invalidation: A sustained recovery above 0.06620 weakens the bearish setup.

$XAU Gold broke below and reclaimed on the daily chart. Keep going long! The target near 4000 remains unchanged! If you’re not in a position yet, hurry and go long! Let’s go! Welcome aboard!

Gold continues to attract capital. Why hasn’t Bitcoin risen in tandem?

An interesting phenomenon has emerged in financial markets recently: Gold and Bitcoin are both seen by some investors as alternative assets outside the traditional financial system, yet their capital flows have diverged significantly.

According to data released by the World Gold Council on November 5, global physically backed gold ETFs saw net inflows of approximately $2.7 billion in October 2026, marking their fourth consecutive month of net inflows. Global gold ETF holdings increased by 19 tons to 4,275 tons, setting a

Why doesn’t price necessarily fall immediately when MACD shows bearish divergence?

In the crypto market, when prices keep making new highs while the peaks of the MACD indicator gradually decline, bearish divergence may form. Many traders view it as a short signal, but bearish divergence reflects a possible weakening in upward momentum; it does not mean that prices will necessarily fall immediately.

First, understand what bearish divergence means.

Bearish divergence typically appears when price peaks keep rising while the corresponding MACD peaks gradually decline. This may indicate that upw

**$MU /USDT Perp – "Steady Uptrend – Long"**
Trading Plan Long $MU
Entry: 816.00
SL: 801.63
TP1: 821.41
TP2: 831.94
MU is trending upward from the 760.26 base. MACD remains bullish; targeting a breakout above the 821.41 local high.

BTC fell more than 5,000 points in a single day; ETH broke below 2,000

BTC and ETH have clearly bearish technical structures, but are already severely oversold in the short term. At current levels, neither chasing shorts nor blindly loading up on a bottom-fishing trade is advisable; wait for a rebound into the resistance zone.

【BTC Strategy】
Direction: Short on a rebound
Entry: Resistance at 69,100–69,250; must fail to hold above 69,250
Target 1: 68,300
Target 2: 67,700
🔴 Stop loss: Above 69,620

【ETH Strategy】
Direction: Short on a rebound
Entry: Resistance at 1,948–1,958; must fail to hol