Napoleonic Warfare Applied To Investing / Trading
My investment system is called CENTRAL POSITION STRATEGY. It is inspired by the strategy of the central position which was a key strategy used by Napoleon Bonaparte in the Napoleonic Wars.
It was used in situations where his armies were weaker than its enemy. But the latter was dispersed in two widely separated concentrations, such as during the opening phases of the campaign of 1809 in Austria and in 1815 in Belgium. And with remarkable brilliance in the face of overwhelming odds in 1814, the strategy culminated in the tripple victories of Champaubert, Montmirail, and Vauchamps.
The strategy of the central position necessitated bold leadership, careful timing, and aggressive movement, for it required the army to get BETWEEN the enemy concentrations, thereby preventing them from uniting. By moving swiftly into the central position, Napoleon could concentrate the bulk of his forces against the more threatening enemy contingent and seek a decisive battle, while a corps or two undertook to hold off the other enemy contingent as long as possible.
Things could go wrong, of course. The enemy could discern his intentions and withdrew, as occurred in April 1809 in the war with Austria, or the pursuit after battle might be poorly handled (for example after the Battle of Ligny 1815), allowing a defeated contingent to march to support of its comrades, both of which occurred in 1815.
In any case, my trading system CENTRAL POSITION STRATEGY does, of course, not apply to exactly the same reasoning. However, it plays a similar game with the bears and bulls in the financial market.
It actually sends in its CENTRAL POSITION INFANTRY (first entry) and CENTRAL POSITION CAVALRY (second entry) while the bulls and bears are in the middle of heavy battle. And always takes side of the offensive party, provided that the estimated probability of victory is on their side. In general, the whole manoeuvre if you want (setup/probability evaluation, position sizing, entry, trailing stop, exit) is carefully and thoroughly planed in advance. To achieve a strategic edge in the market, as Napoleon used to have on the battle field.
My investment system is called CENTRAL POSITION STRATEGY. It is inspired by the strategy of the central position which was a key strategy used by Napoleon Bonaparte in the Napoleonic Wars.
It was used in situations where his armies were weaker than its enemy. But the latter was dispersed in two widely separated concentrations, such as during the opening phases of the campaign of 1809 in Austria and in 1815 in Belgium. And with remarkable brilliance in the face of overwhelming odds in 1814, the strategy culminated in the tripple victories of Champaubert, Montmirail, and Vauchamps.
The strategy of the central position necessitated bold leadership, careful timing, and aggressive movement, for it required the army to get BETWEEN the enemy concentrations, thereby preventing them from uniting. By moving swiftly into the central position, Napoleon could concentrate the bulk of his forces against the more threatening enemy contingent and seek a decisive battle, while a corps or two undertook to hold off the other enemy contingent as long as possible.
Things could go wrong, of course. The enemy could discern his intentions and withdrew, as occurred in April 1809 in the war with Austria, or the pursuit after battle might be poorly handled (for example after the Battle of Ligny 1815), allowing a defeated contingent to march to support of its comrades, both of which occurred in 1815.
In any case, my trading system CENTRAL POSITION STRATEGY does, of course, not apply to exactly the same reasoning. However, it plays a similar game with the bears and bulls in the financial market.
It actually sends in its CENTRAL POSITION INFANTRY (first entry) and CENTRAL POSITION CAVALRY (second entry) while the bulls and bears are in the middle of heavy battle. And always takes side of the offensive party, provided that the estimated probability of victory is on their side. In general, the whole manoeuvre if you want (setup/probability evaluation, position sizing, entry, trailing stop, exit) is carefully and thoroughly planed in advance. To achieve a strategic edge in the market, as Napoleon used to have on the battle field.
