Ask Colin

What do you think of Bill Wormald's geometrical approach in his book Trends and Tripwires?

What do you think of Bill Wormald's geometrical approach in his book Trends and Tripwires?

I have not seen Bill's book. However, I have had a quick look at his web site.

You know, over the years I have seen many of these sorts of approaches. I have spent a lot of time looking at some very earnest people's stuff. However, in the end, I either cannot see why it works, doubt that it does work or can't find a way to trade it profitably.

I have come to the belief after 35 years of study that there is no internal order to markets. They seem to me to be infinitely variable. However, even if I am wrong about this, I think that it is a dangerous approach. It blinds us psychologically to the reality of the price. Trading is not that difficult if we can stay focussed on the market reality and react to the risk levels as they change.

However, like all things, "the proof is in the pudding", the title of a brilliant book, by the way. If you can make money out of it, go for it. There are many ways to make money in the markets and we must all find something that works for us as a unique individual.

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