Part III is where it all comes together. All of the knowledge learned about the markets, investor behavior, and technical research on risk and trends is culminated in developing a rules-based trend-following model. It took almost 61.8 percent of the book to get to this point.

Part III begins with a chapter on popular indicators that are used throughout this section or at least derivations of these indicators.

In Part III I walk you through the involved process of creating and maintaining a rules-based trend-following model, affectionately called Dance with the Trend. Throughout this part I show many technical indicators that I have developed and used over the years, and give suggestions on how to determine the best parameters to use for each one. Although I do not believe that I have discovered anything special, I do know that what works for one may or may not work for another. I do not dive into specifics for individual indicators but try to give you guidelines on how to determine the parameters that best meet your goals. I hope this section of the book is a convincing testimony as to the need for a good technical model, along with rules and guidelines, for long-term successful investing. And don’t forget the discipline, an equal partner in this process.

It doesn’t have to be perfect to be good.

And now, let’s dance with the trend.