Sep

12

V NThere are universal principles that apply to success in all endeavors. I took 10 for cricket by Micoach adapted from The Path to Athletic Power by Boyd Eply who apparently is a famous power coach.

1. Ground based activities. You play most games on the ground so your exercises should be on the ground. Yes, and the way to test a system is to apply it in the real world, not on paper. You must go back at least x years and see what it would have been like at that time.

2. Multiple joint activities. You use all the joints, in coordination. Squats do also, but a leg extension just requires the legs to move. You need to see how your tests and market activities work in the real world when you have multiple positions not just one at a time.

3. Three dimensional movements. Weights train you on three planes but the wire machines train on only two, "with the weights and pulleys taking the strain." In the world of markets, you are embedded in life. The family comes in. Food must be eaten. And sometimes you must leave the screen and take breaks. The announcements don't come when you expect them. Take this into account.

4. Train explosively. Speed comes from how quickly your muscles work. Work with sprints "and Pliometrics" not slow strength or sprints. Do vary your market positions according to the odds and expectations.

5. Progressive overload. Keep increasing the reps.

6. Periodisation. Take account of different time periods and days.

7. Split routine. Do weights on some days and flex on others giving your body a chance to recover. How about commodities at the end of the week and stocks in the beginning and grains over the weekend.

8. Hard easy system. Take it hard some times and easy other times or you'll burn out. Try skipping trading some days and spending time at the gardens.

9. Train specifically. Make it as close to real things as possible. No long runs unless you're a distance runner. Please don't paper trade only and do take account of margins and slippage and your broker front running you.

10. Interval training. Long periods of rest and then an explosion "just like you get when batting, bowling or fielding." The whole game hinges on what you do during seconds. Be prepared and never let down your guard. 

I'd be interested in how readers think the ideas of cricket and power training of Eply and Hinchliffe are related to or different from universal principles applicable to markets.

Martin Lindkvist replies:

Martin LTo gain power, muscle fibers need to be damaged which then leads to the cells repairing themselves, overcompensating, creating new growth and more power. Likewise, you cannot have profits without allowing for drawdowns.

Using many different exercises allows for the muscles to be trained from many angles creating more strength also in the power movements without overtraining in those few specific movements. Using many different/diversified signals/systems allows for more profit compared to overleveraging just a few main signals.

When you train with heavy weights, do use a spotter that can help you get the most of the exercise as well as making sure that you don't hurt yourself, or use a power rack. In markets when leveraged, consider utilising a risk manager for the same function, catastrophic stop loss, etc.

When you have had a while off, start out easy with lighter weights, or fewer contracts.


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5 Comments so far

  1. Steve Leslie on September 12, 2008 10:03 am

    The idea I liked from Gerald Loeb's The Battle for Investment Survival is his method of pyramiding. Buying on the way up and schnitzling or taking a bit off on the way down. I think of this as owing a parimutuel ticket on Big Brown in the Derby and being allowed to buy more tickets as the race progresses and his chances of success improves. This is a far better strategy than selling the ticket halfway through the race and buying another ticket on the nag at the end of the field. In poker, we call this strategy tight but aggressive and even passive aggressive. Pick your spot and aggressively make your move. Sometimes this takes many hours of patiently folding marginal hands until the right hand shows up at the right time. Nothing is perfect buy I have found that this is the most rewarding strategy for me.

  2. michael bonderer on September 12, 2008 12:15 pm

    Why restrict the elbow-joint? It's insane! How does one go about regulating a slow-pace bowlers to 5 degrees or medium-pace bowlers to 7.5 degress or fast-pace bowlers to 10 degrees from a bent-arm position to a straight-arm position? How does a referee eye-ball this? It's soo Fabian Socialist!

  3. steve leslie on September 12, 2008 1:37 pm

    Last month, I chronicled the life of Natalie Du Toit of South Africa who competed in the Olympics in the Women's 10k open water swim and finishing 15th. A truly grueling event of which I can not even imagine competing in. She recently won her 4th gold at the paralympics in Beijing all in swimming. She has a chance to win a 5th gold with the 50 m free yet to come. She won 5 gold and a silver in the Athens paralympics. Thus putting her in the rarified air of Michael Phelps. She is an amazing athlete one of only two who competed in the Beijing Olympics and Paralympics. For inspiration and meals for a lifetime, I suggest you research the life of Natalie du Toit. http://sports.yahoo.com/olympics/news;_ylt=AnlurqmX8zXF1I5zF37UNss5nYcB?slug=ap-paralympicsrdp&prov=ap&type=lgns

    And here is a magical gem from the great Arnold Schwarzenegger: The last three or four reps is what makes the muscle grow. This area of pain divides the champion from someone who is not a champion. That's what most people lack, having the guts to go on and just say they'll go through the pain no matter what happens.

  4. steve stock on September 13, 2008 7:27 pm

    I think I see where you're going with this — weight training/ exercise is about preparation. It's a means to an end. In athletic circles, physical resources are developed and refined through training. Success in the market is derived through preparation, timeliness, and the resources to take advantage of opportunities as they present themselves.

  5. Matt Johnson on September 19, 2008 2:14 pm

    I like the connection. My only comment is that the application is not to the market but to the speculator. The market doesn’t train, or prepare itself - it’s just a manifestation of human behavior. However, as a speculator, we train (I’m a 4.5 NTRP), and prepare emotionally for DD’s and equity surges, as well as being a student of the market. It’s a lifestyle not a career, and I love it!
    As I read your post again, it’s very applicable to a speculator - just don’t forget the psychological aspects of speculation!

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