Ep. 1257: The Trend Following Filing System with Michael Covel on Trend Following Radio
Feb 9, 2024
auto_awesome
Exploring the importance of filing systems in trend following trading success without relying on technology for future prediction. Discussing the parallels between computers and traditional filing systems, with an emphasis on efficient data management and color coding systems for room identification. Delving into the functioning of mechanical systems for data comparison and the analogies between computers and file clerks, highlighting the challenges and solutions of multiple processors working in harmony.
Technology and trading focus on a filing system for efficiency, not complex algorithms.
Richard Feynman equates computers to streamlined filing systems, emphasizing input, processing, and output stages.
Computers serve as versatile high-speed filing systems, aiding in data handling and decision-making processes.
Deep dives
The Role of Technology in Trading
Technology and good trading revolve around a filing system rather than complex algorithms or advanced technology like AI. The key lies in understanding your instruments, portfolio, entry and exit points, risk management, and stop losses. Computers serve as efficient filing systems, acting as tools for tracking and executing a trader's strategy effectively.
Learning from Richard Feynman's Lecture
Richard Feynman, the physicist, emphasized the concept of a filing system in understanding computers, highlighting the input, processing, and output stages. He compared computers to streamlined filing systems, simplifying the complex machinery of a computer into a structured filing system for efficient operations.
Evolution of Computers from Filing Systems
Computers, at their core, function as high-speed filing systems, not solely for arithmetic computations but for data handling and decision-making processes. Feynman illustrates computers as versatile tools capable of various tasks by organizing instructions and data into streamlined processes similar to a filing system.
Increasing Efficiency Through Multiple File Clerks
Efforts to enhance computer efficiency involve exploring systems with multiple file clerks working simultaneously on separate tasks within distinct sectors of memory. This approach aims to distribute processing tasks among different file clerks to achieve faster outcomes and improve overall system performance.
Expert Systems in Diagnosis and Design
Beyond trading and data processing, computers are utilized in expert systems for diagnosing diseases or designing equipment layouts. By encapsulating symptom analysis and decision-making processes into structured algorithms, computers can assist in complex problem-solving tasks such as medical diagnoses and layout optimizations.
Please enjoy my monologue The Trend Following Filing System with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
---
I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/