Our approach ยป Trend Following

Trend Following

A market trend is a tendency of a financial market to move in a particular direction over time.  Market trends are categorized for short, medium, and long term time frames.  These could be anywhere from hours to years or even decades.  At Goldenschild, we mainly focus our trades in market trends that usually lasts a few days to a few weeks at a time.  Investors and traders identify market trends by using technical analysis.  They attempt to foresee where the direction of a particular market trend is heading and try to predict when they will reverse.  The term "bull market" refers to an upward trending market, while the term "bear market" conversely refers to a market that is trending down.

Our intent at Goldenschild is not to blindly predict a trend in a market, but to systematically filter out irrelevant information and market noise so that we can remain in profitable trades and market trends for the longest time possible.  This tactic, coupled with our money management parameters, yields the most efficient and least risky strategy to profit from the markets.

In essence, Goldenschild's trading system wasn't designed to enter at the beginning of a market trend or to exit when the trend ends.  It is to our knowledge, that predicting market tops and bottoms appear to be a function of luck rather than skill.  By studying the fundamentals of a market and technically analyzing specific market trends, we believe capturing the "meat" of a trend is the most fruitful and efficient path to successful trading and wealth creation.