What does Adaptive Trend Following mean?
Adaptive trend following adjusts to changes in the direction a trend is changing.
To adapt is to adjust to new conditions. As conditions change, one who adapts makes adjustments to the new conditions.
Trend is a general direction in which something is developing or changing.
Follow is to come after in time.
Trend following is a trading style that identifies, and confirms, the directional movement of price, then enters in the direction of the trend until the trend reverses. The system seeks out trends and keeps capital positioned in that direction.
Adaptive trend following adjusts to changes in the direction a trend is changing. As a trend changes over time, adaptive trend following adjusts to change with the new trend