Trend Following / Momentum

Trend following is the oldest systematic trading strategy with empirical support. The core observation: assets that have risen over the past 3–12 months tend to continue rising, and assets that have fallen tend to continue falling. This is momentum — measurable, persistent, and documented across equities, commodities, currencies, and crypto. Momentum exists in two forms: cross-sectional, which ranks assets against each other, and time-series, which trades an asset's own directional persistence. The botwir3 trend module implements the latter.

The botwir3 trend module detects directional persistence using configurable lookback windows and signal thresholds. When the module identifies a trend, it proposes an entry. The gate validates the proposal against the configured band before the adapter submits it.

Trend following does not predict where a price will go. It identifies where a price is already going and proposes a position aligned with that direction. The strategy profits when trends persist and loses when they reverse — a profile the user accepts when configuring the module.