The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “Does trend trading really work?” And this I think is an interesting question because I think a lot of people will often hear terms like – “You have to follow the trend.” or “The trend is your friend.” And in many respects, it can be easy to dismiss this as just regular market banter or squawking from talking heads. The question really is – “Does trend trading actually work? Can you follow some sort of trend system with quantifiable entry and exit points and figure out a way to create gains that are better than just randomly buy-and-hold or some other opportunity?” And so, the answer to this question is I think yes. Yes, trend trading on some level does work. There's been great research that have been done from a number of different institutions. Vanguard has done research on this. Meb Faber has got some great research on this if you search Cambria Investments where they actu