One of our favorite crazy critics sent another rambling diatribe in today. Most of his emails are plain loco, but some are useful to teach lessons.
Today “Mark” writes us:
Your headline today is priceless. It just begs the question: what makes you any different from the broker who works on commission?…At least at Morgan Stanley I have the comfort of knowing that my money is FDIC insured and with a reliable and established company. With you I get some phony stats, a “Holy Grail” and a really f**king expensive lesson on how to read moving averages.”
Some quick thoughts for Mark:
1. I am providing education and commentary. Moving clients in and out of trades for the expressed purpose of generating commission is not my calling.
2. Morgan Stanley accounts are not FDIC insured.
3. Trend following stats in my book are not “phony”. Those stats are on file with the United States Commodity Futures Trading Commission and or the Securities and Exchange Commission.
4. Trend following is best thought of as answering the five questions posed in chapter 10 of my book Trend Following. “Reading” a moving average, whatever that means exactly, does not constitute a trend following trading system.