Discussion in 'Wall St. News' started by dealmaker, Feb 6, 2018.
Velocity is key along with range expansion, how many tick bars per second.
That 'system' he is talking about probably has prediction capability of around 50% or less.
Still you can make money with it if you 'let your winners ride and cut your losers'
AFAIK, PTJ binned that trend following system years ago (probably decades!).
Paul Tudor Jones is basically saying ignore the meaningless, emotional, temporary gyrations for the greater, longer, real trend.
You have to realize the key inflection point(s).
This is generally key to success in trading...whether you do it on a daily scale, or longer term investing scale.
But more importantly, it's 2018...High-Five`
That quote is mostly storytelling, it doesnt prove anything. Clearly it didn't work in US stocks after Brexit (since markets quickly recovered and went to new highs) but it worked in other situations. Point is, there is nothing to that quote other than someone giving a narrative that people are drawn to because it makes them feel that they understand the market
exactly my thoughts just about yesterday!
The quote is taken out of context...he is referring to a trend following system he or someone developed at the cost of 7 figures which he then scrapped after a couple of years. Presumably it didn't work or something. This happened maybe 15 20 years ago.
@Daal ...like your input that is why I'm responding.
Wasn't Brexit a binary political event ?
The temporary pull back in U.S.stocks ways followed by the resumption of the established positive tend already in place.
Separate names with a comma.