trend following delusion shattered

Discussion in 'Trading' started by hank rollins, Mar 15, 2005.

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  1. VictorS

    VictorS

    Intraday. like I said, I am just trying to see if i am following along with what you claim. I see the validity of what you and Spike have said, although it isn't logical beforehand.

    please don't think I am a naysayer trying to conflict on a public board. you can even pm with your opinion if you feel it necessary.

    thanks for the time
     
    #151     Mar 19, 2005
  2. Maybe some subjective methods but definitely not all. I am really tired of hearing uninformed people make assumptions about things they know nothing about. For all you individuals that don't understand or believe how a trend following method can be a high percentage method, I will start a trading journal, posting trades in realtime to prove it to you. I will only position trade in it (approximately 20 trades a month) because I trade intraday for myself. I'll post for 4 weeks and begin the journal next week.
     
    #152     Mar 19, 2005


  3. if the probability of success is not greater than 50/50--would not simple random entries, with good discipline / money management be all one needs ?

    :)
     
    #153     Mar 19, 2005
  4. responding to gann's earlier post----

    yes, he is correct that it is the fat tails and outliers that allow "trend folowing " to work for some traders.


    in addition, succesful trend traders are also outliers in real world trading. one cannot point at a success who claims to be a trend trader and say "look trend trading works"

    hank
     
    #154     Mar 19, 2005
  5. That's with any kind of success in any profession.
     
    #155     Mar 19, 2005
  6. Likewise.

    Especially, thanks for that example about flipping a coin for 10 heads in a row being a "heads trend." It helped my own approach.

    There have been several worthwhile posts on either side of this topic. Sorting out issues is an excellent use of this thing we call the internet.
     
    #156     Mar 19, 2005
  7. Based on what I have read, you would have got about the same quality of advice at your local bowling alley.
     
    #157     Mar 19, 2005
  8. Q
    "Just as money management needs the method or system; the method or system needs money management."

    --- The Trading Game (by Ryan Jones)
    UQ
    :confused:
     
    #158     Mar 19, 2005


  9. professions that deal with speculation, perhaps.


    there are not many, if any, broke plumbers, doctors, lawyers, etc who became this way due to their chosen field. you cant say that for traders.

    :D
     
    #159     Mar 19, 2005
  10. Every time I'm presented with an off-the-shelf system, I remember that old standby market efficiency. In this case:

    If a method like the one you describe ever became public, it would immediately become useless, because there's no way for the individual trader to reliably compete against the resources and access of the collective competition including the bigger players.
     
    #160     Mar 19, 2005
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