Sir, Recently I am reading quite a [lot of] stuff of what you have written like The Complete TurtleTrader, The Little Book of Trading, [and] Trend Commandments. First of[f] I congratulate you for writing such a knowledge on paper. I had an interaction with you on email in which I mention [to] you that my trading resemble[s] trend following, however it is not up to the mark. My intention to write this email is to let you know about my recent feelings which accelerated since I got to know your name and work.
It was one of your podcast that I first heard about Charles Faulkner and reheard about Daniel Kanheman. It started a chain reaction and I ended up reading quite a [lot of] work from Dr. Kanheman and Richard Thaler. Their work is not restricted to finance but precious to everyone who wanted to think and apply the same. Thanks Michael that you become the medium to introduce me to this living legend.
I have heard about Ed Seykota and Larry Hite when I read Market Wizards [a] long tiem back. You know to a great degree I was able to connect with Ed. Whatever these great traders are saying is absolutely relevant to everyone who trades. And those who do not trade will never be able to grasp the meaning. Now I have gone through Ed’s website and other materials on trend following. Certain point[s] that I jot down are:
1. You need a system to trade and manage your risk.
2. You need to diversify
3. Whatever system u have to back test it and make it appropriate to your mind.
Michael I am confused that how can a person without background of finance can be able to design a system and back test it (Though I am an engineer with degree in finance). Even the paper on Ed’s site are full of mathematics. I want to say the system you give in your Flagship Course still needed to backtest at least so I know what I am doing.
Also I am in India and up to now I trade only equity so I have to apply rules to markets here in India and see how it works. Please guide me through this confusion so I can forward myself on my journey towards trend following.
Note: Free resources too.