Aug 17, 2015
Many that aspire to be successful
investors or traders look up to Warren Buffett as a role model. Yet
the chances of anyone amassing that wealth by following the same
path as Buffett are extremely unlikely. Debating survivorship bias
seems perfectly appropriate, but that's never broached.
On the other hand, becoming the next Bill Dunn or Ed Seykota (or fill in the blank with the name of any trend follower) has much more possibility. In the trend following world there are many more successful traders, successful examples, which is much more motivational and inspiring.
In this episode, Michael Covel curates excerpts from Kevin Bruce, Jim Simons, and David Harding. All three talking about systems and or trend following. The important point about systems is not just selecting the right one, but also sticking to it once selected. Often people are tempted to make discretionary calls and override a system, defeating its original purpose. Instead, the potential rewards and risks inherent in a trend following system should be evaluated at the beginning, discretionary calls made at the outset, then let the system run without interference. That is the path to potential success.
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