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Experiencing Drawdowns

Markets are extremely volatile at the moment and are expected to remain so for the foreseeable future. If you missed my market commentary from last week you can watch the video here. Many strategies are experiencing drawdowns in this environment. While these are never comfortable, they are an integral part of the trading process. I strongly […]

4 Ways to Trade Through Drawdowns

A drawdown is a decline in equity measured on a marked-to-market basis. Drawdowns are the ‘cost’ of exploiting a risk premium and cannot be avoided. However, the ability to stay with a strategy during a drawdown is one of the most difficult aspects all traders face. Rather than take steps to adjust or second-guess strategy […]

Drawdown Diagnosis – what’s wrong with my trading?

Drawdown diagnosis – aren’t all drawdowns the same? After all, a loss is a loss, right? Wrong. Not all drawdowns are equal. A drawdown is a decline in your trading account or strategy. Handling a drawdown is one of the hardest thing for traders (alongside sticking with their strategy). Analysing Drawdown I came across a […]

How to Handle Drawdowns

This stock trading question in regards to how to handle drawdowns comes from Ben B. whose #1 challenge is… “Working with a system where the drawdown is so big that I can’t sleep at night?” A great question. Let’s start by defining drawdown. Drawdown means the largest equity decline your strategy will theoretically have in […]

Can ChatGPT Create a Trading System?

With the AI boom in full swing and seemingly every piece of software now including some sort of AI assistant, a question that has been asked consistently on trading forums for the last few years is “Can ChatGPT help me create a trading system?” It’s a simple question, but as always, the answer is not […]

What is Financial Repression?

It sounds ominous, but financial repression occurs when governments attempt to inflate their debt away. While it may benefit the government, it can be challenging for individuals and investors seeking higher returns on their savings because interest rates cannot keep up with inflation. Investors might turn to equities in search of higher returns, potentially driving […]

It’s Different This Time…

Recently, I’ve come across a few articles that highlight a significant shift in the market dynamics over the past 18 months. Further Thoughts on Sea Change In “Further Thoughts on Sea Change” authored by Howard Marks, the CEO of the massive fund Oaktree, a thought-provoking perspective is presented, and I find myself in […]

Weathering Financial Storms

Imagine having a financial tool that helps protect and grow your money, no matter the economic weather. One that is designed to work well when the economy is doing great, and also when the economy isn’t doing so well. Consider a well-balanced investment strategy that doesn’t put all your eggs in one basket. It spreads […]

Current market conditions

As many of our portfolios enter Portfolio Protect mode, we wanted to take a minute to address the current market conditions (September 2023) and the ongoing performance of The Chartist portfolios. At The Chartist, we make no attempts to hide the inevitability of drawdowns or lacklustre performance. These situations are fundamental parts of markets and trading. Understanding they can and will happen is an important factor […]

Escape The Volatility

Escape The Volatility. Have you ever felt punch drunk on your investing journey? You know, that sensation of being emotionally drained, bewildered, or disoriented, like the aftermath of taking repeated hits to the head from Mr. Market. Uncomfortable feelings often arise in investing, and they usually come in two forms. The first is a dip […]