Investing with the Trend

PART I: MARKET FICTION, FLAWS, AND FACTS 13

CHAPTER 2

Fictions Told to Investors 15

CHAPTER 3

Flaws in Modern Financial Theory 27

CHAPTER 4

Misuse of Statistics and Other Controversial Practices 51

CHAPTER 5

The Illusion of Forecasting 57

CHAPTER 6

The Enemy in the Mirror 71

CHAPTER 7

Market Facts: Bull and Bear Markets 83

CHAPTER 8

Market Facts: Valuations, Returns, and Distributions 113

PART II: MARKET RESEARCH 139

CHAPTER 9

Why Technical Analysis? 141

CHAPTER 10

Market Trend Analysis 159

CHAPTER 11

Drawdown Analysis 231

PART III: RULES-BASED MONEY MANAGEMENT 267

CHAPTER 12

Popular Indicators and Their Uses 269

CHAPTER 13

Measuring the Market 281

CHAPTER 14

Security Ranking, Selection, Rules, and Guidelines 319

CHAPTER 15

Putting It All Together: The “Dancing with the Trend” Model 355

CHAPTER 16

Putting Trend-Following to Work 391

CHAPTER 17

Conclusions 399