Rose, Rose, Rose

Feedback in responding to this recent podcast:

Michael: Oi..vey. You want to go at it again. From December 18, 2007, through January 14, 2008, there was a constant rising trend in the currency pair EUR/GBP, seen on a daily chart, amounting to 497 pips, from the low of the range on the first date to the high of the range on the last date. At that time the pip cost on the spot market was at 2.0 so this was actually a gain of twice the 497 pips, or 994 pips. I routinely review and investigate my log of past trades, and saw this wondering why I did well in this pair over this period, although I did not gain anywhere near the total pips offered. Investigating further, I found reports from Thomson and Reuters confirming that during this period there was information from traders and economists, and other “news”, that the BOE would need to reduce their rate, and the ECB would probably stand pat or raise their rate. Ergo, EUR is in demand as against GBP. Would you agree that this is a fundamental reason for price movement,…or not? Despite this fundamental force, I followed what you might call the trend following method, depending on price movement and technical analysis to make the yes or no transaction decision, and time entries and exits. Would you call this “Trend Following”? If not, why? If so, then is this not a blend of using Fundamentals with Trend Following? If not, could you please answer with specific details, and if I am convinced, if I have no further argument, I will admit to you that the two cannot be used together, that they are separate. Michael, it is not nice to call people ignorant as you did in your podcast of February 25th referring to me. I believe you are a very insightful writer and researcher, and I would not at any time call you ignorant although I am sure I have more university degrees than you (including a post grad degree) all from one of the big 5 or 10 universities (as in Harvard, Yale, Princeton, etc.). Now what? Regards, Rose.

A follow-up shortly after:

Michael; I see on re-reading the email I sent some minutes ago that I left out a pertinent fact. I knew at the time of the trades that there was this market force creating the demand for EUR vs GBP, every day I was reading Thomson, Reuters and other news, so I felt I could use the technical analysis backed up by this fundamental market force. I was not trading just from this fundamental scene, but heavily dependent on following the trend. Rose.

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.