An excerpt from my new book:
[Gary] Davis never felt like he knew anything in the beginning. He was an intelligent doctor, but approaching trading like a research scientist may have been his real genius. The one thing he did firmly understand after research was that if he didn’t follow his plan, he had nothing. However, it was pretty clear that if you just did it, you’d make money. One of the nice things about being a mechanical trader: it is not time intensive. The research can be time intensive, but the actual trading isn’t time intensive. You just have rules, you follow them and you do them. Almost anybody that follows markets knows that they react in certain ways once momentum starts, and especially as it builds. It eventually gets excessive, stops, and then goes the other way. To not understand that about markets is to not understand anything about human nature. Davis saw this early. He was foundational to his success.
His firm has been a trend following pioneer for 30 years.
More to come…
