The Israeli Diet Trade
A few weeks ago, Israeli researchers at the Weizmann Institute of Science confirmed something that I have suspected all along. One calorie is not the same as another and the efficacy of a diet is highly dependent on your individual biology.
The study continuously monitored blood sugar levels in 800 people for a week, and discovered that the body’s response to all foods seemed to be highly individual. For example glucose levels spiked in some subjects after they ate white bread but not in others explaining why some people can lose weight quickly when they cut out carbs while other can’t. Furthermore, the same food also affected blood sugar levels differently in the same person if, for example, consumption had been preceded by exercise or sleep.
All of which shows just how important context is to any diet and why any blanket recipe for losing weight is almost always worthless.
Dieting and trading of course are intimately correlated, They are both human activities at which 90% of the cohort fails to achieve its goal. I’ve written before about the need for discipline in both activities and here too the similarities are striking. If you want to lose weight you need to be disciplined about exercising or eating. If you want to trade well you need to be disciplined about either entries or exits. There is no way to escape that choice if you want to have even a slim chance of succeeding in either activity.
But the Weizmann Institute study struck a chord with me for a very different reason. I have long argued that there simply is no such thing as a successful trading strategy. There is only a trading structure which each trader needs to modify for his or her individual needs. In my chat room alone I have more than 400 traders from every region of the world. They all trade the day trading structure that I’ve developed. But despite the fact that they adhere to the general rules of entry, exit and risk there are literally scores of variations of my idea that are traded in the room every day.
In fact I am astounded at the variety of approaches from my very own highly selective methodology of picking only one or two good trades each day to the many others that generate 30 -- 40 trade cycles across all the major pairs and crosses. Everybody is different. Everybody has different approaches to risk and reward.
When it comes to food the combination of our personal biochemistry and our surroundings can create huge variations in metabolic burn rates, so too with trading our own sense of risk combined with the specific market conditions can create very different outcomes using the same “strategy”.
I know that this is not what most traders want to hear. I know that everyone just wants a simple solution, a single formula for endless production of pips. But life doesn’t work that way. Success is always a function of personal choice and responsibility. That’s why I think so many traders in my room succeed. Like the subjects in the Israeli diet study they have found their own way to get things done.