Trading

Last week I met with Michael Covel, author and president of Trend Following, a privately owned firm specializing in trend trading research.  Michael recorded our lunch meeting as he interviewed me about my experiences with the MIT Blackjack Team. We were both struck by the similarities and connections between trend trading and card counting. Expected return, risk…

The mean or the average of the count in blackjack is zero as there are an equal number of low cards and high cards in any shoe or complete number of decks.  The further away the count is from zero, the stronger the tendency that it will move back toward the mean.  Professional card counters…