From a reader:
Dennis and Seykota both seem to give the impression that their styles while being interviewed for Market Wizards ‘would become obsolete’ sooner rather than later. Obviously, changes in market efficiencies and inefficiencies lead one to believe that this day has in one way or anotherr come and gone, but there are still fundamentals about trend trading that can definitely be taken from all three books. Have you asked or heard from these type of upper echelon traders in recent years, with regards to the changing technology of the market environment and the affects this has had on the ability to trend trade? One must almost force themselves to be somewhat of a day trader in order to secure winnings and yet, there is always that trend that still develops and carries on for a great amount of time, whether or not the market is chopping.
There are plenty of trend traders trading their trend following methods doing quite well and have been for decades. I am not so sure anything about markets has fundamentally changed. There are still trends caused by the buying and selling among human beings. That seems eternal.
August 6th, 2008 at 6:29 am
….yes…the systems will continue to work…the graph of supply and demand is inescapable. I guess what will finally kill the system (capitalism, trend following)will be the system itself. Maybe when Wheat and other commodities hit highs that send the world into turmoil and destruction, a new system will evolve….
August 6th, 2008 at 11:17 am
The world will survive. Markets have been going up and down for a long time.