Trader Faculty
GlossaryAbout
Trader Faculty

A structured trading curriculum across stocks,
forex, crypto, futures and commodities.

Trader Faculty is an education publisher. We do not hold client funds, execute trades, or act as a broker.

official@traderfaculty.com

Courses

  • 01What is Trading?
  • 02Trading 101
  • 03Risk & Money Management
  • 04Setting Up Your Trading Setup
  • 05TA Masterclass
  • 06Fundamental Analysis for Traders
  • 07Trader Mindset
  • 08Build Your Trading System

Guides

  • Markets & Instruments
  • Trading Foundations
  • Technical Analysis
  • Risk Management
  • Mindset & Psychology
  • Strategies & Systems
  • Tools & Platforms
  • Fundamental Analysis

Site

  • All guides
  • All courses
  • Glossary
  • About

Legal

  • Terms
  • Privacy Policy

Trading involves the risk of losing money. Leverage can magnify both gains and losses. Nothing on this site is investment, financial, or trading advice.

© 2026 Trader Faculty. All rights reserved.

Education only. Not financial advice.

Home>Courses>Build Your Trading System>Lesson 5 of 8

Strategy types: trend, range, breakout, mean reversion

A strategy that enters with the prevailing trend and rides it until it turns.

Build Your Trading System·Lesson 5 of 8

All lessons

By the end of this lesson you'll be able to:

  • 01Define trend following
  • 02Explain 'the trend is your friend'
  • 03Describe its trade-offs
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is Trend Following? A Trader's Complete Guide
Key terms
Trend FollowingTrendMoving AverageStop Loss

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    What does trend following mean?

  2. Question 02

    What does 'The trend is your friend' mean?

  3. Question 03

    What do trend followers aim to do?

  4. Question 04

    What is a common trend-following tool?

  5. Question 05

    What is a downside of trend following?

  6. Question 06

    In a strong uptrend, what would a trend follower prefer to do?

  7. Question 07

    Where does trend following tend to perform worst?

  8. Question 08

    How does a trend follower cut losses?

  9. Question 09

    What do trend followers accept they will do?

  10. Question 10

    Where does the edge in trend following come from?

Answered 0 of 10 · pass 70% (7/10) to complete

Build Your Trading System5 of 8
  1. Trading strategies overview
  2. Day trading
  3. Swing and position trading
  4. Scalping
  5. →Strategy types: trend, range, breakout, mean reversion
  6. Building a trading plan
  7. Backtesting your system
  8. Forward testing and validation
  9. ⚑Final Assessment· 20 Q