A Half vs. Half-Assed Product

Reduce the rules in your investing strategy to make it more robust and easier to execute.

We all hear that simple is better; that complex doesn’t work as well and is harder to execute over the long run. Complex rules tend to promote confusion and second-guessing – things that can wreak havoc on any investing strategy.

Investors insist on making things too complicated. Many even believe that simple rules cannot make money over the long run; that the only way to win is be some kind of genius math whiz or have super-human intuition. No. No. And no. Simple and effective works.

Don’t believe me? Have you ever tried sticking with a complex diet – the “all spinach diet”, Atkins or Vegan diets? I bet many of you have read about these online and have given them a try once or twice. I wonder how long you stuck with it – a week or two maybe?

You have to find what works and what works for you. A simple and balanced approach has worked well for the past 100,000-200,000 years. Don’t fall for complex schemes with fancy marketing campaigns. They’re not viable over the long run, so why bother? Simplify and stick to it.

A simple diet vs a complex diet

Simple

Breakfast – Eggs, fruit and coffee

Lunch – Turkey, side salad and small sweet potato

Dinner – Salmon, broccoli and rice

Dessert – Fruit or ice cream

* Adjust the servings to reach your desired weight.

* Drink water throughout the day to the point where your urine is a light yellow color.

Complex

Step 1) Visit an authorized Sadkhin Complex Diet Plan practitioner. The practitioner will tape an acupressure bead on a predetermined pressure point behind your ear.

Step 2) Then, you eat a diet composed of 1 1/2 pounds of raw fruits and vegetables per day for two consecutive days. For the next two days, you consume only 2 1/2 glasses of whole milk. 

Step 3) You continue on the rotating dietary regimen for up to one month straight, eating or drinking between the hours of 11 a.m. and 6 p.m. every day. You also rub the acupressure ball at specified periods throughout the day to curb hunger.

Step 4) Finally, you visit your Sadkhin Complex Diet Plan practitioner periodically, about every two weeks, to have her move the acupressure beads to different hunger points behind your ears.

Don’t believe me that this is real? Here’s the link: http://www.livestrong.com/article/543204-7-day-rapid-weight-loss-diet-for-heart-surgery-patients/

One diet is practical and the other is a joke.

You can make investing as simple or as complicated as you like, but in my experience, simple works better.

A Simple Investing Strategy

Here’s a simple investing strategy that focuses on three things: 1) Diversification; 2) Trading with the Trend and 3) Managing risk.

1) Portfolio – S&P 500, MSCI Emerging Markets Index, US 10yr Treasury, Eurodollar, Gold, WTI Crude Oil, Corn, Soybeans, Cotton, Sugar, Live Cattle, British Pound, Australian Dollar, Japanese Yen and Swiss Franc.

2) Entry / Exit: Enter long position when price moves one tick above the 200-day HI. Close long position and enter a short position when the price moves one tick below the 200-day LO.

3) Position Sizing: Risk 0.55% on each trade. Base position size on 8x the 60-day ATR (Average True Range).

* Figure the risk-per-lot as the difference between support and resistance levels (200-day HI – 200-day LO). 

* Use Core Equity instead of Total Equity to determine position sizes. Core Equity = Total Equity – Equity at Risk

Keep it simple, people.

Disclosure

Past Performance is Not Necessarily Indicative of Future Results
There is always a risk of loss in futures trading.

This communication is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product, an official confirmation of any transaction, or as an official statement of Melissinos Trading LLC. All information is subject to change without notice.

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