Pure trend following is the most systematic, undiluted form of trend-based investing: following the direction of price trends across markets with maximum consistency, minimum discretion, and no fundamental analysis inputs. A pure trend follower buys what is going up and sells (or exits) what is going down — without trying to predict why trends start or when they will end, simply responding to the price signal itself with disciplined, consistent rules.

See also: Trend Following and Systematic Trend Following for broader treatments of the trend following framework and its evidence base.

The “pure” designation distinguishes this approach from hybrid strategies that blend trend signals with fundamental valuation, sentiment, or macro inputs. Pure trend following accepts that it will generate many small losses (false trend signals) in exchange for the occasional large gain (capturing a major trend move). Its positive skewness — large wins, small losses — is its defining characteristic and the source of its long-term compounding advantage.