How to Trade Profitably
A few years ago I went around Australia and did a seminar showing people how to manage their risk appropriately. The videos for this seminar are now available to Members in The Chartist Education section available to Members (titled the Profitable Trader). I suggest that the 2% rule is probably not appropriate for everybody. You […]
Learning how to Trade the Stock Market
If we use an analogy; I was teaching my daughter how to drive. I use to have hair before I was teaching her how to drive. Now I have none. When you teach a teenager how to drive, the quantitative rules are pretty straight forward. Put your foot on the accelerator to move the car […]
Trading the Trends in the Stock Market
Trends can’t not exist. The economy is always shifting back or forth, and human sentiment which is ultimately the driver of the market, is always shifting backwards and forwards –and therefore trends will always occur. I had a run in with a very major Australian educator whom in 2009 came out and basically said in […]
I’m not a stock picker.
I’m not a stock picker. To give you an idea, over the last six or seven years my major trend following strategy here in Australia that trades long only equities, my win rate is about 49.6%. During that time, my compounded annualized return is about 18% compared to the market 2.7%. That’s only getting it […]
Trend Following System
A trend following system has got rules. Simple does work. It really does work. People tend to look for complexity. People tend go for a strategy that has a higher winning percentage. But that’s wrong. Simplicity works best because simplicity is robust and it works exceptionally well. In my book Unholy Grails, towards the end […]
How I became a Professional trader
I was unwittingly introduced to trend following. A friend worked for a big, well established stock broking firm, and he was looking for a clerk. So it ticked all my boxes; I got to catch a train to work, carry a briefcase, and wear a suit and work in a building. So I started as […]
Investing for your Retirement
Do you have a retirement fund? For our retirement Trish and I have used a trend following strategy called the Growth Portfolio since 2006 and we trade it within our SMSF (Self Managed Super Fund). The Growth Portfolio accounts for about 85% of the value of our retirement account and we have accumulated a retirement […]
Amibroker for Building and Testing Trading Systems
Craig Fisher and I work together to develop systems using Amibroker. Craig is the best coder I’ve come across and he is a great mentor to our Trading System Mentor Course students. So why AmiBroker? Amibroker is inexpensive, it can do anything you want; it can automate processes, it can do explorations, it can do […]
How do you know if your trading strategy is no longer working?
Let’s say you’ve got a long only trend following system. A long only trend following system is not going to do particularly well in a sideways market or a downwards market. That’s a fact of life. It is designed specifically to profit extensively when the market is trending up. Again, this comes back to why […]
How Long is a Trading System valid for?
Q. When you go live with a system, how long do you actually expect it to last for and continue to give you a trading edge. Do you anticipate that it may only be good for a certain amount of time, whether that’s a couple years? Or, if it’s truly robust, should it continue to […]