The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk

CONCLUSION

My goal in presenting The Trend Following Bible is to give you the ability to gain financial freedom. I have not sugarcoated anything and have given you a look at what trend following really is, no surprises. To me trend following is a lifetime strategy. It has its drawdowns and even extended periods in which profits are elusive. There will be drawdowns, there will be long periods when you do not make money, and there will be periods when you step back and say “Can you believe that?” because you stumbled onto some very large profitable trends (as rare as these are).

I have taught you exactly how I trade. It is simple in nature but hard to do in practice. The reason it is so hard is that we all have greed and fears that we need to deal with. We as traders are the weak link. This is why a key message of the book was focusing on how to think like a successful trend follower. This is no different from what William Eckhardt and Richard Dennis taught their Turtle students. The actual trading is based on Richard Donchian's breakout strategy as well as the trend retracement ideas of Alexander Elder with a strong dose of my personal risk management so often not presented. It is simple yet effective. Most of the program was spent on how to think and how to handle the emotions of fear and greed. This is also where I have tried to lay the emphasis.

Unfortunately, traders seek the holy grail. They seek the reasons why moves occur. They seek elusive trading indicators or trading systems. ...