The fact that trend following strategies are becoming less effective could be interpreted as a positive thing implying that markets are becoming more efficient, as trend following shouldn't work in a completely efficient market.
Trend following strategies are pure market followers and are not based on fundamentals, therefore they do not bring any new information into markets and are unlikely to improve the efficiency of a market.
Trend following strategies are pure market followers and are not based on fundamentals, therefore they do not bring any new information into markets and are unlikely to improve the efficiency of a market.