Embrace the Shake: The Foundation of Trend Following

I tweeted this.

Here is an example of that from The Hedge Fund Journal:

David Harding spent two years at Sabre Fund Management, each day drawing hundreds of charts by hand, like a true craftsman. Every chart was bound into big leather folders, and in turn each chart pattern was copied into other folders. He likens it to an old-fashioned publishing house. Harding noted without irony that the company was run by accountants, and that “there certainly was method in what was done there.” He continues “I certainly regard my time there as the foundation stone of my credentials as an empiricist. There is nothing like drawing thousands of charts by hand to fix them in your mind. In fact I regard this phase of exhausting taxonomy of technical analysis as being like the relationship used to be between biology and taxonomy in the life sciences. Until something like 1830 you had gentlemen scientists collecting leaves and putting them into folders, and it wasn’t until Darwin that he and others started putting some order on it. Only by arranging data and putting it in order can you get any pattern out of it.

Nice.

---
You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.

One thought on “Embrace the Shake: The Foundation of Trend Following

  1. Yes, I too drew charts in 1964 and now Timer Digest ranked me as 5th in the country on 5-13-13. I also identified stocks by looking for something unusual in the WSJ. You know unusually high volume and or price increase.

Comments are closed.