Dear Mr. Covel,
Thank you for writing your book, “Trend Following”. I already had about a year’s experience of profitable trading under my belt while reading it, when this came to me: You can’t teach people how to trade, no more than you can teach someone what to do for each move of a chess game before they sit down to play their opponent. Like in chess, the market’s next move is unpredictable. We have an idea of what is most probable to happen next, but anything *can* happen. You can teach people how markets work, just like you can teach people how chess works. But how each person plays is up to their knowledge of the rules, and their experience playing. That experience is what tells them what move their opponent is most likely to make next. This understanding came to me about 20% through your book, while I was reading its negative reviews on Amazon. People complained there were “No actionable steps”. People wanted you to tell them what to do next with their pawn, then what to do next with their rook, then what to do after that with their queen. They want to be spoon-fed trading. But it doesn’t work like that. They want Ed Seykota to email them the code that his systematic trading bot runs on. Like you say, there is no secret sauce. Bill Dunn, John W. Henry, Richard Donchian, and Jesse Livermore are giving us the rules of the game, and telling us how markets work, which is infinitely more valuable than a static, spoon-fed, “buy when this indicator does this”, then “sell when you see it do that”. Actionable steps are for get-rich-quick’ers, and they just don’t get it yet. Thanks for shining a light on this space. Your work is getting me closer to where I want to be in life.