Trading the Trend (Collection)

Statistical Thinking

Anton Chigurh: What's the most you everlost on a coin toss?

Gas Station Owner: Sir?

Anton Chigurh: The most. You ever lost.On a coin toss.

Gas Station Owner: I don't know.

I couldn't say.

[Chigurh flips a quarter from the changeon the counter and covers it with hishand.]

Anton Chigurh: Call it.

Gas Station Owner: Call it?

Anton Chigurh: Yes.

Gas Station Owner: For what?

Anton Chigurh: Just call it.

Gas Station Owner: Well, need to knowwhat we're calling it for here.

Anton Chigurh: You need to call it.

I can't call it for you. It wouldn'tbe fair.

Gas Station Owner: I didn't putnothin' up.

Anton Chigurh: Yes, you did. You've beenputting it up your whole life; you justdidn't know it.1

Trend following is about non-normality of ...