My view on Trend Following

It's seems like a few of trend following fans offended by my blog. I have been honest not claiming to be a turtle trader which displayed at top of my blog page. I don't even know who are turtle traders until a few of those guys started to blast me and led me to find out more why this group of people feels so supreme. They feel that my contrarian efforts trying to read the market minds will end up with futility - contradict principle of turtle traders: don't speculate what will happen but just let the price action tell them. They feel that their ability to cut loses very quickly and pounding on profit(up or down) make them feel very sucessful. Their mechanical system that takes emotion out of trading system is perfect. Micheal Covel did a good job creating a blog, writing books and keep publishing sucessful funds lead a lot of people to believe this is the best trading system in the world by spending a few thousand ringgit. A person keeps telling good points without bad points is flashing red light.

As a student of the market, I have respect for all models - sometimes one model works better than the other, in different times. It will be very foolish of me trying discredit turtle traders are not sucessful. They are sucessful people. I believe Richard Denise is a nice person. He gives away his trading system at free of charge. Unfortunately a small group of people trying labeling other people's method of investing is inferior or laughing at them not cutting losses. I hope they too be more emphatical and more liberal. The world ended up with war and grieves because of some people insisting supremacy with some twisted facts or truths or realities.

I learn a great deal of position sizing and volatility after reflecting on one of the strengths of their model. The other great strength of the model is their cutting losses discipline. I did learn some new things from researching who are turtle traders. So, I thank those who blasted me - I have nothing to lose really.

But be aeware of the model weakness. Return will be less spectacular when the market start to move sideway or consolidating. Currently, a lot of trend following funds are sitting on high pile of cash. I'm in opinion they are likely to miss the first 30-40%. For the record, I am aiming to move RM 1 - 2 k into commodity funds.

Last few words, if I know turtle traders are so famous, I would have not chosen this turtleinvestor888.blospot.com to reflect my slow and steady approach for this blog. I think I have explained myself quite enough. This will be the last time, I assure you.