We look at a back test in a very clinical way. It’s Oh, look, there’s the equity curve. That’s amazing. Over 30 years, look how much money we would have made. And yes, there’s drawdown. I’m comfortable with that level of drawdown and, Oh, it’s 30 percent winners, 70 percent losers. Yeah, that’s okay. I can deal with that.

I understand trend following. It’s yet another thing to have your account go from a hundred thousand to 70, 000. Or from 10, 000 to 7, 000 or from 5, 000 to 4, 000 or from a million to 700, 000, when you think, when you start thinking in terms of the dollars, how much did I have? How much do I got now?

Whoa, something’s broken. No, it’s perfectly normal drawdown. I think normalizing the stats and looking at the percentages and comparing back to the systems constantly is really good practice. Otherwise, the dollar drawdowns will freak you out.