Tuesday, December 29, 2009

Laird Hamilton

Big-wave surfing icon Laird Hamilton...doing what he does best in the monster waves of "Jaws", Maui.



As a (*bit past his prime*) Florida surfer, I think surfing, particularly big-wave work like Laird does, is also a good metaphor for the type of trading strategy that we follow. Rather than trying to precisely value the market, predict the future, or figure out causality chains (probably impossible in a complex adaptive system like a market), we just try to identify and ride the "waves" of long-term price trends. To paraphrase John Henry, "We want to be long when a market is going up and short when a market is going down. Period." Actually doing this is fairly involved, of course, but there is a Zen simplicity that underlies both surfing and systematic trend-exploitation approaches.

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