Although trend following has been a popular trading philosophy for many years, surprisingly little has been written about its origins and history. This is partly due, no doubt, to the scarcity of available information prior to the early 20th century, and because until about 50 years ago trend following as a philosophy had not been completely articulated. To be sure, by the early 1950s many trend following methodologies were in common use ââ¬â and may have been for centuries ââ¬â but the underlying concept had not been fully defined, or even given a name. One reason for this paucity of early information is suggested by the ââ¬Åfollowingââ¬Â part of the term ââ¬Åtrend following.ââ¬Â The implication is one of passivity, of reaction, rather than of bold, assertive action ââ¬â and human nature shows a distinct preference for the latter. Also, trend following appears to be too simple an idea to be taken seriously. Indeed, simple ideas can take a very long time to be accepted ââ¬â think of the concept of a negative number, or of zero: simple to us, but problematic to our ancestors.
