Trend Following Strategy in Crypto
What trend following is, how trend-following bots decide when to trade, and how ONYX runs this family live — explained in plain terms.
What is trend following?
Trend following trades in the direction the market is already moving — buying strength, selling weakness — instead of trying to call tops and bottoms. It doesn’t forecast where price will go next; it identifies where price is going now and rides that move until it fades.
A trend-following bot defines the current direction with indicators such as moving averages (EMA), MACD, PSAR or Supertrend, opens a position with that direction, and exits when the trend weakens or flips. Because every entry and exit follows a fixed rule, the bot applies the plan consistently — no hesitation, no second-guessing.
When is it used?
Trend following is built for markets that move in sustained directions — extended rallies and extended declines. Crypto is known for long momentum runs, which is a big part of why this is one of the most widely automated strategy types.
In sideways, range-bound markets, trends are short-lived and signals become less frequent — by design. The strategy aims to capture the large directional moves rather than to trade constantly, so patience between signals is part of how it works.
ONYX strategies in this family
PSAR Trend
A trend-following strategy that reads price above/below the PSAR to set direction.
EMA200 + MACD
A trend strategy that filters overall direction with EMA200 and confirms momentum with the MACD histogram.
Trend Following
A trend-following strategy that filters trend quality by checking EMA alignment, MACD, PSAR and RSI together.
Supertrend Volume Confirm
A strategy that enters after a Supertrend direction flip is followed by a volume-confirmation candle.
Live performance for every strategy — cumulative return, win rate, max drawdown — is published in the strategy market.
Frequently asked
No. Trend following is reactive by design: it waits for a direction to establish itself, then follows it with predefined entry and exit rules. That is what makes it systematic — no forecasts, no discretionary calls.
The most common building blocks are moving averages such as EMA200, MACD momentum, PSAR and Supertrend. ONYX trend strategies combine them with additional filters — for example, a volume-confirmation candle after a Supertrend flip — before entering a position.
It is one of the oldest and most studied strategy families, and the logic is easy to follow: trade with the market’s direction. Keep in mind that no strategy profits in every market — results vary with conditions, and futures trading with leverage carries liquidation risk.
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The automated trading programs provided by ONYX do not guarantee profit. Futures and leveraged trading carry the risk of total loss of principal and liquidation. All investment decisions and outcomes are the sole responsibility of the user.