If You Can’t Write It Down… How Can You Trade It?

A great line from one of the oldest running trend followers:

“I’m very uncomfortable with black box trading where I’m dealing with algorithms I don’t understand. Everything we do we could do on the back of an envelope with a pencil.”

That “back of an envelope” remark must be a revelation for those people that imagine trading to be wildly complex. The real lesson here is the discipline to stick with rules during tough times.

Write It Down
Write It Down

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.