Trend trading is to eliminate market noise through a large number of indicators, establish a trading system, judge the current market trend, and then establish positions. The critical point for adjusting positions is specified by a specific computer algorithm. The trend trading of CTA strategy is successful not only because investors think that the market is not so efficient, but more importantly, they observe the trend in the market.
The impact of the event will lead to a rapid rise in the value of the subject matter in a short time, but its price will take some time to rise, and then the price may continue to climb beyond its value. In the meantime, the trend-following strategy can make a profit by buying.