Well, certainly one of my favorite topics that I kind of almost refused to quit talking about

is, you know, how do these systems work?

How does trend following work?

Systematic trading maybe, but definitely trend following.

One of the key tenets is doing a back test and looking to the sample size and of the

back test and number of trades and needing to requiring yourself to include longs and

shorts as if it was just one type of trade, trading all the markets the same way. And so to build up this sample size,

you use the same methods and the same parameters. And at the end of the day, you look at all

of the trades, the thousands of trades from the past, but you must conclude that you're going forward, the average profit and loss

and expectation is going to be the sum total of all of those trades.

So, in other words, all the trades make the same amount of money.

That's your best guess going forward.

Of course, it's not exactly true historically.

But as we approach infinity and time, more than likely, wheat and Swiss franc will end up making about the same amount of money with the same system.

So this week, somebody put out there, what happens if you miss the top 20% trades in the stock market,

you won't make any money? And so my comeback to that was, well, trend followers don't need to

really worry about that because all of our trades make the same amount

of money. At least we have to expect that to be the case. So our main concern would be to just have

a diverse portfolio, to smooth out the ride. And I went on to say that a lot of the limitations and quote unquote rules that are other

markets and strategies are subject to, Trent following is not subject to those. So it's kind of

interesting and fun and a huge edge when you think about it to be able to say, you know,

look, all of my trades are going to make about the same amount

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