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Diversified Trend Trading Approach

Why we are liking trend following around these parts....

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Cut short your losses. Let your profits run on. David Ricardo (1772-1823)
Quoting Ramadas
Why we are liking trend following around these parts.... {image} {image}
Yep. Sometimes when I ride into town I see those mean reverters sniggering like rattle-snakes at us ol' trend followers.....but then I just sort them out with some straight talkin'.....and a piece of hickory.

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As Ernie says...you can make mean reverting strategies safe....but that is by capping their risk exposure that then takes the shine of their illusory linear equity curves and turns them into volatile ones.....and then reveals why trend following is a preferable tactic for achieving long term sustainable returns.

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Co-integration is stronger than correlation as the reason for variable dependency...but when or if you get it wrong....you pay the ultimate price. I used to spread trade equities thinking that there was co-integration here in Australia between the large blue chip mining companies......oh....how I got that wrong :-(

I think trend following is a philosophy for the aged and wise....when it suddenly dawns on you that perhaps you are not that smart after all....and you capitulate to the market as the only true master......and then your fortunes change after paying lots of tributes to the God of chaos. :-)
Best to be safe rather than sorry said the tortoise to the hare. Here is a wise way to view the Efficient Market Hypothesis. Efficient most times....but noise can exist around this efficiency.

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Quoting Copernicus
{quote} Yep. Sometimes when I ride into town I see those mean reverters sniggering like rattle-snakes at us ol' trend followers.....but then I just sort them out with some straight talkin'.....and a piece of hickory. {image} As Ernie says...you can make mean reverting strategies safe....but that is by capping their risk exposure that then takes the shine of their illusory linear equity curves and turns them into volatile ones.....and then reveals why trend following is a preferable tactic for achieving long term sustainable returns. {image} Co-integration...
To quote Confucius, “True wisdom is knowing what you don’t know.”
Cut short your losses. Let your profits run on. David Ricardo (1772-1823)
Yep you look like a crazy idiot if you mention the word "trend".

it's because people don't spend time backtesting... they are "religious gamblers" lol

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Quoting HeyYou
Yep you look like a crazy idiot if you mention the word "trend". it's because people don't spend time backtesting... they are "religious gamblers" lol {image}
Hehehehehe. Bring out the dead!!!!!!!
Quoting Copernicus
{quote} Hehehehehe. Bring out the dead!!!!!!!
Lol, there are still some realities here where the DEAD matters
Quoting HeyYou
{quote} Lol, there are still some realities here where the DEAD matters

What about YOU? you're alive! be yourself once in a while damnit.

dreams come true when you stop dreaming.... life is the dream!
Quoting HeyYou
{quote} What about YOU? you're alive! be yourself once in a while damnit. dreams come true when you stop dreaming.... life is the dream!
It's pretty good just being alive mate and if you look hard enough there is real wonder and beauty in this universe mate without having to dream at all....that's what Walter Mitty was all about.......It is the people in that universe that tend to be the problem....so I focus on the good, kind and creative people that want to look after our universe. You may have noticed :-)

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I purchased and read “The Tao of Physics” by Fritjof Capra in 1975. It was one of the most influential books I’ve ever read. I still have it and even though the pages are getting a little worn out, and the cover is a little stained, the ideas inside still seem new and refreshing.

Here’s a video of Fritjof Capra explaining some of the things he wrote about.

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A more recent work by Capra is called, “The Web of Life”. Here he’s being interviewed about it on the “Thinking Allowed” show.

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Quoting Pips_Cruiser
I purchased and read “The Tao of Physics” by Fritjof Capra in 1975. It was one of the most influential books I’ve ever read. I still have it and even though the pages are getting a little worn out, and the cover is a little stained, the ideas inside still seem new and refreshing. Here’s a video of Fritjof Capra explaining some of the things he wrote about. https://www.youtube.com/watch?v=kBJFJVZMnlo
One down. Stunning Pip. A physicist who was ahead of his time....like Bohm, Bohr and Heisenberg.....and then of course you have Alan Watts on the philosophical side of the debate bringing these disparate world views together. Thanks for sharing mate. Now onto the next. :-)
David Bohm in his examination of 'Thought as a System'. A fantastic series of seminars. I wish I was there.

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Quoting Pips_Cruiser
I purchased and read “The Tao of Physics” by Fritjof Capra in 1975. It was one of the most influential books I’ve ever read. I still have it and even though the pages are getting a little worn out, and the cover is a little stained, the ideas inside still seem new and refreshing. Here’s a video of Fritjof Capra explaining some of the things he wrote about. https://www.youtube.com/watch?v=kBJFJVZMnlo

? 34:18 on tape
Quoting CARP.BLUFFS
{quote} ? 34:18 on tape
That was an abalone diver from abstract space interfering with Capra's Tao :-)
Quoting Pips_Cruiser
A more recent work by Capra is called, “The Web of Life”. Here he’s being interviewed about it on the “Thinking Allowed” show. https://www.youtube.com/watch?v=pkIPP0oeYac
Luv it Pip , Capra gets added to the list of must reads :-)
Quoting CARP.BLUFFS
{quote} ? 34:18 on tape
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lol . . .
Quoting Copernicus
{quote} One down. Stunning Pip. A physicist who was ahead of his time....like Bohm, Bohr and Heisenberg.....and then of course you have Alan Watts on the philosophical side of the debate bringing these disparate world views together. Thanks for sharing mate. Now onto the next. :-)
Here's an Alan Watts lecture about Maya.

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Quoting Copernicus
{quote} It's pretty good just being alive mate and if you look hard enough there is real wonder and beauty in this universe mate without having to dream at all.
Precisely what I meant! what we have is enough

yeah some belgian Beer just makes it even better....ahh the beer makes me look a zen master...

If just I could spend all time in nature I would be NATURALLY high, indeed
Quoting Pips_Cruiser
{quote} https://www.youtube.com/watch?v=AVQ8byG2mY8 lol . . .
LOL :-)
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