Part IIIRules-Based Money Management
Part III is where it all comes together. All of the knowledge learned about the markets, investor behavior, and technical research on risk and trends is culminated in developing a rules-based trend-following model. It took almost 61.8 percent of the book to get to this point.
Part III begins with a chapter on popular indicators that are used throughout this section or at least derivations of these indicators.
In Part III I walk you through the involved process of creating and maintaining a rules-based trend-following model, affectionately called Dance with the Trend. Throughout this part I show many technical indicators that I have developed and used over the years, and give suggestions on how to determine the best parameters to use for each one. Although I do not believe that I have discovered anything special, I do know that what works for one may or may not work for another. I do not dive into specifics for individual indicators but try to give you guidelines on how to determine the parameters that best meet your goals. I hope this section of the book is a convincing testimony as to the need for a good technical model, along with rules and guidelines, for long-term successful investing. And don’t forget the discipline, an equal partner in this process.
It doesn’t have to be perfect to be good.
And now, let’s dance with the trend.
Get Investing with the Trend: A Rules-based Approach to Money Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
