Trend Following defined

Greg Morris definition of trend following

###  The Essence of Morris’ Philosophy

Greg Morris defines trend following not as a predictive endeavor, but as a **process-driven discipline**. He rejects the mainstream obsession with forecasting, which he views as a "quick path to failure." Instead, Morris argues that a successful trend follower is one who abandons the ego-driven need to guess market tops and bottoms, focusing entirely on what the market is *actually doing* in the present moment.

### Core Principles

For Morris, the practice of trend following rests on three non-negotiable pillars:

*   ** 1. Objective Measurement:** You must correctly identify the current state of the market using robust tools. If your analysis of the present is flawed, your entire subsequent strategy will be compounded by that error.

*   ** 2. Rules-Based Strategy:** He advocates for a rigid, rule-based framework. This removes the emotional baggage—the fear and greed—that leads most retail investors to disaster. A trend follower doesn't ask, "Where is the market going?" They ask, "What are my rules telling me to do based on the current evidence?"

*   ** 3. Risk Mitigation (The "Drawdown" Focus):** Morris is adamant that "volatility" is a useless metric for risk. Real risk is **drawdown**. His entire approach is designed to avoid the catastrophic 75%+ portfolio declines he experienced early in his own career. He views cash not as "sitting out," but as a vital asset class to be utilized when the trend is unfavorable.

### Rejecting "Easy Answers"

Morris has a profound disdain for the "buy-and-hold" and "indexing" mantras pushed by Wall Street institutions. He views these as lazy, "easy answers" that fail to account for the reality of a moving, evolving market. 

His definition of a trend follower is someone who:

*   **Does not care** about market direction guesses.

*   **Always remains** properly positioned to minimize losses.

*   **Utilizes proof**—specifically mathematical and empirical evidence—over the "wallowing in confusion" that characterizes the typical punditry.

In short, Morris views trend following as the ultimate form of **market sovereignty**. By relying on a disciplined, rules-based process, the investor stops being a victim of market volatility and starts acting as a tactical operator who acknowledges that the only thing you can control is your own reaction to the price action.