Tuesday, January 27, 2009
John Boyd & Fighter Pilot Trading Introduction
Boyd developed the OODA (Observe, Orient, Decide, Act) Loop where 'time is the dominant parameter'. The fighter with the fastest OODA loop execution will, all things being equal, win.
For a trader the OODA loop can be an important tool. If you can execute your OODA loop faster than the market sentiment you will be very successful. If the market is turning faster than you; you will lose.