Some feedback on recent book review:
“The Welling@Weeden review and ensuing discussion on your blog brings to light a paradox of the demonstrable success of trend followers, which is that trend following’s success depends critically upon a market in which there are at least some participants who are NOT trend followers, who buy and sell based on fundamental analysis as served up by the many Weedens of this world, or (in the case of commodities) supply/demand factors. If every market particpant were an unadulterated trend follower, there would be no trend since prices in that case would be truly random. Be careful, when you cite the masses of institutional money apparently adopting trend following, of what you wish for.”
David Peipers
Thanks David, good point.
True it is zero sum game, but with this debate raging:
http://www.michaelcovel.com/archives/000308.html
…do you think it is likely that we will have ALL trend followers?
