When you trade in the direction of the trend you are following the markets rather than trying to predict them or fight them. It's like swimming downstream. Of the hundreds of trading system ideas tested over the past few years, the Trendchannel system developers produced positive returns when a trend trading approach to a diversified portfolio of markets over time was applied. The Trendchannel formula is simply the best trend trading system the developers found. The system developers found that trading against the trend did not work in the long run.
Trend trading can be painful at times.
This is one reason why a large percentage of traders lose money trading. They try to avoid the pain of taking losses by holding on to losing positions too long. They try to avoid the pain of losing back profits on their winning trades by getting out too early. In their attempts to avoid pain, the unsuccessful traders ignore the trend and trend changes. Trade with the Trend.