One of the things that social media has brought about is not only widespread dissemination of uneducated and frankly stupid opinions but also the spreading of outright lies. Below is a copy of an equity curve that appeared on one of my pages.
Pay close attention to not only the curve which is the thing most incorrectly focus on but rather what is being claimed in the actual data. This system claims to have a hit rate of 97.3% for all trades both long and short, 46 consecutive wins and a maximum drawdown of 1.02%.
I have spoken about this before but as a trader, you either lead an evidence based data-driven life or you do don’t and this sort of philosophy is particularly relevant in the current climate. Having a capacity to look at claims dispassionately be they economic, financial, social or even emotional puts you a long way ahead of the pack. If you cannot do that you will forever be a member of the herd and are most likely to fall prey to the sort of nonsense above.
