Short-term trend trading and liquidity - stay away from small tick contracts

The paper, “Is Trend Still Your Friend: A microstructural account of the demise of short-term trend-following” , is important research on why trend-following may not work over short horizons. While trend-following seems to span time, there are exceptions. Since 2009, there has been no profit to be had from short-term trend trading. This paper documents the break in short-term trend trading and…