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Neal: How many of those investors told you they were successful with the systems they used in the past? |
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Committee: Only three, but all 600 hoped to be successful system traders. Of the three, one bought a system and the other two developed their own. One spent four years developing his system and the other, six years. The one characteristic they both shared was their determination to study the markets and all materials available on systems development. Ultimately, they both wondered why it took them so long to discover the simplicity of their systems. This reminds me of an old quote, "Facts are a lot like cows: they disappear the longer you stare at them." |
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Neal: What do cows have to do with markets and systems? |
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Committee: This means that the more you study the markets and systems, the more likely you will eventually get beyond the surface and find the interrelationships within the markets. This is what happens in the cow analogy. After studying the cows, you see their environment and all the interrelationships between the cows and their environment. It can take a long time to get beneath the surface to discover the important relationships. And after a while you do not see the cows; you see the relationships. |
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Neal: Relationships, we always come back to that point. Let me ask the entire committee: Are you all big believers in systems? |
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Committee: Over these past 20 years, we have gone from one extreme to the other. There were times when we felt like systems could do everything and other times we felt systems could do nothing. We can say that there are not many good systems out there for the investor. It is easier for a software developer to write a good press release than produce a good system. |
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