“All a trend following trader needs is an excel spreadsheet…”

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Hey Michael,

I’m enjoying your book and I’m in the middle of the Alex Greyserman interview.

You’ve said on your podcast that all a trend following trader needs is an excel spreadsheet. Can a person with an excel spreadsheet compete with these PhD Physists? I have trading experience, so I fully understand the concept of risk management and the idea that any trend follower win rate may only be 40%. So, what edge do these data miners have over someone who only has excel skills? Larry Williams has a story, in the Money Tree series, of a successful trader that had a “magic” necklace. When dangling the necklace, if it swung clockwise the market would trend one direction. If the necklace swung counter clockwise, the market would move in the opposite direction. The only reason it made money was that the trader cut the losses short if the market didn’t move in the right direction.

I hope you have time to respond.

Sincerely,
Daniel C.

You can compete. Read. Trend following does not involve magic necklaces.

Filed under Trend Following