It’s funny, I was actually thinking of sending you a message. I’ve read Trend Following a few times, I listen to your podcasts (I went back to the beginning archives). I love the interviews and caliber of guests. I’ve thought about signing up for the course back in February. My biggest hesitations – time and mental capacity. I’m currently studying to sit for the CFA (blasphemy!). I passed level 1 December and I had a small window of time before I hit the books again. I knew your course was only 12 or 18 months depending on the package and I knew that I didn’t have that much time to devote (I had less than 6 months). I ended up signing up with another course that had lifetime access. I studied his course, it’s a bit more chart reading and less quantitative / backwards testable. Nonetheless, I studied his methods and tried back testing charts up until I needed to set that aside and get back to the CFA.
Anyway, I wanted to reach out and let you know that I like your interviews, I like commentary on the website, the research and thought that went behind the book. I like the differing opinion from the rest of the financial industry. One day, I plan to sign up with your course, but for now, it’s is just not in the cards. I wish I could take advantage of the offer, but I’m basically on an information diet.
My Ah-ha moment was the email about the limiting losses. For some reason, I couldn’t conceptualize the 1-2% rule until I read it in one of the emails. I understand limiting losses, cutting losses, etc., but I always thought, that the plan was to only put 1-2% into a trade. If you have a $100k account, $1-$2k / position, as opposed to an $X position, with a $1k-$2k, stop loss.
The thing that I still can’t understand is how to build the rules and how to test the rules. I understand that the rules are not what earn the returns, but following the rules earns the rewards, and that is my missing piece. I’ve tried a few theories, but I don’t know how to test it properly. I’ve searched the Internet a bit, but I haven’t had the time to fully devote a deep dive, so that is currently where I am. Otherwise, I like the non-prediction of markets, the psychological discipline required and of course, the returns.
Be persistent. You can win!