How are trading systems developed? They are developed over years of experience and testing. However, before you start back testing, beta testing, virtual trading, live trading and making all the modifications to the design of the system, it firsts starts with an idea. Two years ago Bob Shannon and I were having a conversation about companies we both like to trade and why. This developed into a deeper thought as the conversations with Bob typically go. Why do we trade? Why do we spend years perfecting our systems? It is certainly not for the money as money is simply a concept that a creation to be utilized. It is for TIME!!! Time to spend with family, time to give to charity, time to build our communities, time to give back. Time is everything.
As many of you know Bob is one of my researchers and someone I trust with everything. The man has a heart of gold and like many of us at Tackle Trading want to leave our positive mark on this amazing world. He and I also share the belief that we should leave our planet in better shape than we found it.
That night Bob and I detailed some of the most greedy things Wall Street and Corp America has done in the name of profits…outsourcing to China the development of a Wind Mill farm in Texas that actually added to our decreased any net gain the wind mills would have on the environment or the debt repurchasing of Brazilian lumber mills that received more money to cut down the Amazon more efficiently to name a couple.
In our frustration Bob asked what we could do as we are just two traders sitting in an hotel.
Here’s what we do, we hedge.