After four years of complete inactivity regarding the Fractal-Trading blog, I decided it is time to share some of my Trading thoughts and charts again. The nature of that has changed a bit since the blog was run in 2010/2011. What you’ll find here now is pure trendfollowing trading using the system as described in the About section. However, it’s merely a tool to navigate in the markets, I won’t be making any recommendations, looking at interesting markets that could start or continue a trend is the main priority instead.
During the time the blog was inactive many new developments have arisen in the financial and trading world, trading is still the most exciting field to live with and make money in for me. A few things have changed in my world, too, as I am focusing on the long term only wanting to catch the major moves. In order to do that I am watching some 40 markets on a weekly timeframe, placing orders based on that horizon. In this regard the last four years have been a lot of fun, because this methodology has not been without success. Still, it needs to be said that the psychological aspects for traders weigh differently, when you trade on the weekly timeframe patience can be a big issue. This is also supported by the “make it happen overnight”-philosophy put forward by society in general and the financial media in particular. Trendfollowing on a weekly timeframe on the other hand has nothing to do with all the hype people associate with trading. It is calm, it admits that it doesn’t know what will happen and it simply grinds out what the markets have to offer in a very systematic and risk controlled manner. The goal are extensive, slowly accumulated profits with cut-short losses that never exceed the account balance by a certain % amount. The described tradingview is based on the trading philosophy and psychology of famous traders, e.g. Ed Seykota, Tom Basso, Bill Dunn, David Harding and so forth. If you are unfamiliar with their decade-long superb performance have a look at the performance of some of the top trendfollowing funds such as Mark J. Walsh & Company: Standard Program, DUNN Capital Management, Inc.: World Monetary and Agriculture (WMA) Program *QEP* or Transtrend B.V.: Diversified Trend Program – Enhanced Risk USD at http://www.managedfutures.com/top_cta_rankings.aspx
A small part of what these guys made is enough to make a decent living without the 9-5 daily grind! Since trendfollowing is no magic at all, instead nothing more than a systematic way of approaching trading – a numbers game if you will, anyone with enough dedication, passion and discipline can make it – just don’t expect anything to happen over night.
Welcome back on a journey in which we don’t know where the wind will take us tomorrow..
More updates on components of trendfollowing trading and markets that are currently of interest will follow.