Critic Back for More & Angry This Time!

My critic here just responded with more:

“You decide to highlight the good results, but happily bury the poor results in tables of data.”

Do you consider chapter 2 and 3 of my book “Trend Following” buried? Entire chapters of a book in print for years is hidden away? Maybe you should go back and do some reading to at least have a decent argument. He continues:

“I have not seen the numbers for Campbell, Chesapeake et al (the big boys with yards of dollars under management), but am reasonably sure they will not put up Oct. numbers anywhere close to Henry’s comparatively tiny Financial and Metals fund.”

Perhaps, you should take a read of chapter 11 of my book “The Complete TurtleTrader”. You do follow that Henry has always been more aggressive and other trend traders shoot for less returns? It is a choice. People choose differently, but I get your argument that I am secretly duping people with incomplete information. I also understand that for the sake of your argument the hundreds of thousands of words in my books must be put to the side and ignored! He continues:

“If you are paid consulting fees by John Henry and Company please disclose this to your readers.”

There you go, get the anger out! I have no relationship with JWH, just respect for his entrepreneurial abilities. He continues:

“I also like how you like to write in absolutes as it obviously sells more books and draws attention to your blog. ‘The folks that did great during those periods due to the credit bubble all blew out in October 08. Trend traders survived. ‘ Your quote lacks honesty and highlights how you chose to cherry pick data.”

You are really worked up today! You got me. I am dishonest to the core. I spend my days thinking up ways to explain trading performance & traders all in a secretive, manipulative way to fool the little guy who apparently can only read that trend followers did well in October 2008. If I follow your logic this will then cause him to invest all of his money tomorrow and possibly lose it all cause he didn’t unerstand the risks. What else you got in your bag of arguments?

11 thoughts on “Critic Back for More & Angry This Time!

  1. I have a feeling this guy was heavily invested in Blue Mountain…..probably a bit cranky after reading this…

    It’s funny how all these haters are all so incensed that guys like JWH are killing it this year. I would be too if I was short VW and long Porsche for huge size trying to make peanuts and then blowing up. Picking up nickles in front of a steamroller……..

  2. If I read between the lines this critic wants to pretend that October 2008 was just another month as well. That is BS. All of Wall Street melts down, banks disappear, Dow and S&P crater…and across that backdrop…trend followers kill it and I am supposed to just say, “just another month, no big deal!” Yeah, whatever!

  3. These are the same guys which were slamming JWH/Trend followers during their drawdowns. Thats fine….but now that the trend followers are putting up huge numbers they are implying it’s all just luck. Pretty weak. I guess the “brilliant minds” of Wall St were all just unlucky this year.

    If you go back and look at the performance of guys like Dunn and JWH since their inception, the returns are excellent. I think some people are insulted that such a “simple” approach works so well over the long haul. How can following price action work? Too funny………

  4. Maybe Bill Dunn is not as good a trader as David Harding of Winton (another trend follower), ok, perhaps true. But Dunn has been at it since 1974 I believe (30+ years of performance). And without a doubt Dunn has pulled a fortune from the markets that most of Wall Street would die for. Yeah, Stuart, Florida might not be sexy, but so what, the performance is there for all to see.

  5. Dunn has had some huge up years. Like you said…..people would be extremely happy to have done what he has over the last 30 yrs. The guy has stuck to his guns throughout the years. One of the most impressive things about his fund is there is 0% management fee. He doesnt make 2% or so like others for just for having large AUM. He actually HAS to be profitable to get paid from his investors. That speaks volumes about the guy and his fund.

    As far as Stuart? Is a very nice little town right on the water. Nothing wrong at all with living up in that area. Very relaxing……..I’ll take a Florida winter over a cold/depressing NYC anyday.

  6. At some point you have to ignore the critics. If s/he wants to argue trivial points, the argument becomes convoluted and trite. Perhaps s/he should think independently and scientifically test your ideas to prove your trend following idea/method false. If they are, after all, false, then move on. Clearly this person has not put any effort into testing trend following trading and wants to find the easy answer of it instead.

  7. It can hurt to be wrong, especially when we are dealing with money we cannot afford to lose. That is what sounds like has happened here. Trend following is just that, it is fairly simple and times like October were tremendous trend following times. I am amazed at how many professionals, and the funds stay so stubborn in their approach to the markets.

    I have been wrong many times and the worst pain comes when I felt like I had to be right. The times when I needed that gain. I do best when I am relaxed and do not feel the pressure to make money.

  8. Jake,
    My primary market is financial electricity forward vs. spot. This is a different beast. However, I have also been a trend follower since first reading about the turtles and the whole experiment.
    I don’t mean to give the impression that those results are from a strictly trend following system. Once I have my true trend following system in place and have ACTUAL results I will begin to post that performance.

    Trade the heck out of it!

  9. Good advice Jim. I guess I find these critics often present a great chance to debate. So for me it is not personal, but rather a chance to have logic and facts win out through debate.

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