indextrader.com.au copyright © 2010 brent penfold afsl 225946 long-term secrets of professional...
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
Learn the universal principles of successful trading and you’ll know what the professional forex trader knows!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
Brent Penfold
• Bank America 1983• Futures Trader – FX and Indices• Author• Educator• Licensed Futures Advisor (AFSL 225946)• Publish daily newsletters for active traders
• Contact:– Web: www.IndexTrader.com.au www.CyclePoint.com.au– Email: [email protected]
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Email: [email protected]
For either;
• A 28-day free trial to my newsletter or a• Copy of this presentation
Email: [email protected]
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ASIC Housekeeping
ASIC AFS License No. 225946
This presentation is
• Educational only• Does not contain investment advice• Does not contain personal advice• Only contains general advice
There is RISK OF LOSS in futures trading
Any opinions, conclusions and or other information expressed by myself today does not contain personal advice. Attendees will need to determine with, or without the assistant of a person licensed to give personal advice, whether any general advice expressed by myself is appropriate for them given their particular needs, financial situation and investment objectives.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
A Big Thank You
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ATIC Presentations
Learn what the Professional Forex Trader knows
Saturday: Long-term Forex Secrets
Sunday: Short-term Forex Secrets
Workshop: Master Forex Workshop» 15th and 16th May
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Who’s confused about works in Forex?
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
My message today is to understand the
universal principles of successful trading.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
My message today is to understand the
universal principles of successful trading.
Understand them and you’ll knowwhat the professional forex trader knows!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
2007 daily turnover US$3.2 trillion (BIS)2010 daily turnover US$4.0 trillion (est.)
London accounts for around 34%New York accounts for around 17%Tokyo accounts for around 6%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
EUR/USD 27%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
GBP/USD 12%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
JPY/USD 13%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
CHF/USD 5%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
AUD/USD 5%
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
• Fastest growing market• Becoming the market of choice for the private trader
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0mtailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
Advantages of Forex
• Deep liquidity ease of entry and exit
• Good volatility creates plenty of trading opportunities
• Competitive quotes low transaction costs
• Low margin requirements, some as low as1%efficient use of trading capital
• Variable trade sizes from $10k to $1.0m (and more)tailor risk exposure to match account size
• Multiple forex providers good competition for your business
• Multiple internet trading platformschoice of easy execution
• 24 hour trading creates continuous bars with few gapless surprises
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Forex – the World’s biggest Market
• 24 hour trading creates continuous bars with few gapless surprises!
gaps very few gaps
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Why Everyone Loses
Let’s begin and find out why
everyone loses and what you
can do about it!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Trading’s Paradox
Today it’s both the best and worst time for traders.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Nirvana – It’s The Best of Times
Today traders have never had it so good.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Nirvana – It’s The Best of Times
Today traders have never had it so good.– Multiple electronic discount brokers
– Multiple electronic trading platforms• Automatic trading programs
– Inexpensive live real time data
– Multiple charting programs with 100’s of indicators
– Multiple markets • Forex, Financials, Commodities, Energies etc
– Multiple instruments – Options, Futures, Shares, CFDs
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Nirvana – It’s The Best of Times
Today traders have never had it so good.– Multiple trading theories
• Traditional technical analysis, Inter-market Analysis,• Elliott Wave, Market Profile, Fussy Logic,• WD Gann, Chaos Theory, Candle Sticks,• Geometry, Seasonals, • Fibonacci etc, etc, etc.
– Multiple trading newsletters
– Multiple trading educators
– Multiple trading workshops
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Nirvana – It’s The Best of Times
Today traders have never had it so good.– Multiple trading theories
• Traditional technical analysis, Inter-market Analysis,• Elliott Wave, Market Profile, Fussy Logic,• WD Gann, Chaos Theory, Candle Sticks,• Geometry, Seasonals, • Fibonacci etc, etc, etc.
– Multiple trading newsletters
– Multiple trading educators
– Multiple trading workshops
And still over 90% of traders lose!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
A Trader’s Typical Journey
Lets look a trader’s typical experience.
Despite advancements traders still lose!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
10% edge back, step by step.
IndexTrader.com.au
IndexTrader.com.au
So the question is how can we join the 10% Winners Circle?
Any ideas?
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
10% edge back, step by step.
So the question is how can we join the 10% Winners Circle?
Any ideas?
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90% of traders give up here.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
10% edge back, step by step.
So the question is how can we join the 10% Winners Circle?
Any ideas?
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90% of traders give up here.
Despite advancements traders still lose!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
Winners Circle!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
Winners Circle!
Universalprinciples
of successful
trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
Winners Circle!
Without the universal principles it’s almost impossible to succeed in trading.
Universalprinciples
of successful
trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
So the question is how can we join the 10% Winners Circle?
Any ideas?
10% edge back, step by step.
Winners Circle!
Without the universal principles it’s almost impossible to succeed in trading.
Universalprinciples
of successful
trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Why Everyone Loses
Despite advancements in technology, trader services and
trading education over 90% of traders still continue to lose.
Traders are being overloaded and overly confused by too
much choice in the trading world. They lose sight of the
universal principles of successful trading.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Why Everyone Loses
Despite advancements in technology, trader services and
trading education over 90% of traders still continue to lose.
Traders are being overloaded and overly confused by too
much choice in the trading world. They lose sight of the
universal principles of successful trading.
So it’s time to get back to the
universal principles of successful trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Why Everyone Loses
Despite advancements in technology, trader services and
trading education over 90% of traders still continue to lose.
Traders are being overloaded and overly confused by too
much choice in the trading world. They lose sight of the
universal principles of successful trading.
So it’s time to get back to the
universal principles of successful trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
U. Principles
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
The Intermediate TrapMany intermediate traders fail to develop additional rulebased trading strategies believing their current methodologyis sufficient to continue trading profitably.
Usually it’s not.
Advance traders will usually trade a portfolio of strategies.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
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A
A
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
A
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
GA
A
A
A
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
G
G
G
G
G
G
G
G
G
G
G
G
G
G
GA
A
A
A
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
G
G
G
G
G
G
G
G
G
G
GA
A
A
A
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
G
G
GA
A
A
A
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/resultsA
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/results
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- markets can trend- retracement trend trading
- breakout trend trading- counter-trend trading (or swing trading)
- markets can be range bound/choppy/non-trending- scalping- swing trading
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/resultsRisk Management!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
The Intermediate TrapMany intermediate traders fail to develop additional rulebased trading strategies believing their current methodologyis sufficient to continue trading profitably.
Usually it’s not.
Advance traders will usually trade a portfolio of strategies.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Andrea Unger
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Andrea Unger
Winner of the World Cup Championship of Futures Trading® 2008 & 2009
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Andrea Unger
Winner of the World Cup Championship of Futures Trading® 2008 & 2009
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Andrea Unger
Winner of the World Cup Championship of Futures Trading® 2008 & 2009
Andrea trades;
- trend-following
- counter-trend and
- inter-market strategies.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Andrea Unger
Winner of the World Cup Championship of Futures Trading® 2008 & 2009
Andrea trades;
- trend-following
- counter-trend and
- inter-market strategies.
Andrea trades multiple rule based strategies!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Benefits of Developing a Portfolio of Rule Based Strategies - Capture more market structure gives more opportunities
- trending markets- retracement trend trading
- breakout trend trading- counter-trend markets
- swing trading- choppy range bound markets
- scalping
- Capture more timeframes gives more opportunities- short-term, medium-term & long-term trading
- Diversification against a strategy failing
- Smoother equity curve/resultsRisk Management!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
The Intermediate TrapMany intermediate traders fail to develop additional rulebased trading strategies believing their current methodologyis sufficient to continue trading profitably.
Usually it’s not.
Advance traders will usually trade a portfolio of strategies.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Secrets
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Secrets
Long-term trading is where the big money is made.
Money is made from day trading, short-term and medium-term trading, but NOT the big money.
BIG MONEY is made by catching the BIG long-term moves.
BIG MONEY is made from long-term trend trading.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Trend Trading
Important Facts:
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Trend Trading
Important Facts:
Fact #1 It’s the safest way to trade.Trends move markets and are the basis of all profits.Trade with the trend.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Trend Trading
Important Facts:
Fact #1 It’s the safest way to trade.Trends move markets and are the basis of all profits.Trade with the trend.
Fact #2 It’s a miserable existence being a trend trader.
- You spend 67% of your time losing!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Trend Trading
Important Facts:
Fact #1 It’s the safest way to trade.Trends move markets and are the basis of all profits.Trade with the trend.
Fact #2 It’s a miserable existence being a trend trader.
- You spend 67% of your time losing!
Fact #3 There are two ways to trade with the trend
- Retracement trend trading- Breakout trend trading
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Retracement Trend Trading
“ trade with the trend, the trend is your friend”
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Breakout Trend Trading
“ trade with the trend, the trend is your friend”
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Secrets
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Attributes of Successful Rule Based Trading Strategies
A universal secret to most winning strategies is to keep strategies;
• Simple
• 100% objective
• Verifiable
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Tom DeMark is a well-respected trader who has worked with market wizard Paul Tudor Jones and currently advises Steven Cohen’s SAC Capital, a $16 billion hedge fund. He remarked in the Art Collins book Market Beaters:
“…The bottom line was, after 17 programmersand 4 or 5 years of testing,
the basic 4 or 5 systems worked best…”
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Tom DeMark is a well-respected trader who has worked with market wizard Paul Tudor Jones and currently advises Steven Cohen’s SAC Capital, a $16 billion hedge fund. He remarked in the Art Collins book Market Beaters:
“…The bottom line was, after 17 programmersand 4 or 5 years of testing,
the basic 4 or 5 systems worked best…”
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Book includes interviews with
15 elite traders – the Market Masters.
One is Tom DeMark
Special advisor to Steven Cohen at SAC Capital,
a $16 billion hedge fund that for the last 18 years
has a achieved an average annual return of 40%.
Tom has been a special adviser since1997.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Attributes of Successful Rule Based Trading Strategies
A universal secret to most winning strategies is to keep strategies;
• Simple
• 100% objective
• Verifiable
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Attributes of Successful Rule Based Trading Strategies
A universal secret to most winning strategies is to keep strategies;
• Simple less can go wrong
• 100% objective consistent application
• Verifiable know your expectancy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Attributes of Successful Rule Based Trading Strategies
A universal secret to most winning strategies is to keep strategies;
• Simple less can go wrong
• 100% objective consistent application
• Verifiable know your expectancy
We trade for the opportunity to earn expectancy.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Long-term secrets used to make the BIG MONEY!
Who wants to learn three long-term tradingsecrets used by professional forex traders?
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… but first, let’s look at their profit and loss performance …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… let’s look at the first strategy …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
Set-up1. Short-term trend 20dma2. Medium-term trend 40dma3. Long-term trend 200dma
Trade PlanLong Entry 20dma > 40dma & Close >
200dmaBuy next day MOO
Long Exit 20dma < 40dmaExit next day MOO
Short Entry 20dma < 40dma & Close < 200dma
Sell next day MOOShort Exit 20dma > 40dma
Exit next day MOO
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
Set-up1. Short-term trend 20dma2. Medium-term trend 40dma3. Long-term trend 200dma
Trade PlanLong Entry 20dma > 40dma & Close >
200dmaBuy next day MOO
Long Exit 20dma < 40dmaExit next day MOO
Short Entry 20dma < 40dma & Close < 200dma
Sell next day MOOShort Exit 20dma > 40dma
Exit next day MOO
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #1 – Triple Moving Average
Set-up1. Short-term trend 20dma2. Medium-term trend 40dma3. Long-term trend 200dma
Trade PlanLong Entry 20dma > 40dma & Close >
200dmaBuy next day MOO
Long Exit 20dma < 40dmaExit next day MOO
Short Entry 20dma < 40dma & Close < 200dma
Sell next day MOOShort Exit 20dma > 40dma
Exit next day MOO100% objective rule based strategy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… let’s look at the first strategy …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… let’s look at the second strategy …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Strategy #2 – Donchian Channel Breakout Strategy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Strategy #2 – Donchian Channel Breakout Strategy
Developed by Richard Donchian in the1960’s.
Made popular by Richard Dennis andBill Eckhardt’s Turtle experiment in the1980’s.
This strategy is almost 50 years old!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
LongsEntry Breakout of the 4 Week HighStop Breakout of the 2 Week Low
ShortsEntry Breakout of the 4 Week LowStop Breakout of the 2 Week High
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
LongsEntry Breakout of the 4 Week HighStop Breakout of the 2 Week Low
ShortsEntry Breakout of the 4 Week LowStop Breakout of the 2 Week High
4 weeks in and 2 weeks out
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
LongsEntry Breakout of the 4 Week HighStop Breakout of the 2 Week Low
ShortsEntry Breakout of the 4 Week LowStop Breakout of the 2 Week High
4 weeks in and 2 weeks out
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #2 – Donchian Channel Breakout
LongsEntry Breakout of the 4 Week HighStop Breakout of the 2 Week Low
ShortsEntry Breakout of the 4 Week LowStop Breakout of the 2 Week High
4 weeks in and 2 weeks out
100% objective rule based strategy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… let’s look at the second strategy …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
- Breakout Trend Trading (x2)
- Reversal Swing Trading (x1)
… let’s look at the third strategy …
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Strategy #3 – Stop and Reverse Strategy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
Always in the market.
Stop and reverse when market switches over the trailing stop.
Trailing Stop;If Long, the trailing stop is the highest of either;
- 7.5% below previous highest high or- If a new high hasn’t been made within 20 bars lift existing trailing stop by 0.5%.
- The trailing stop is never lowered.
If Short, the trailing stop is the lowest of either;- 7.5% above previous lowest low or- If a new low hasn’t been made within 20 bars lower existing trailing stop by 0.5%.
- The trailing stop is never raised.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
Always in the market.
Stop and reverse when market switches over the trailing stop.
Trailing Stop;If Long, the trailing stop is the highest of either;
- 7.5% below previous highest high or- If a new high hasn’t been made within 20 bars lift existing trailing stop by 0.5%.
- The trailing stop is never lowered.
If Short, the trailing stop is the lowest of either;- 7.5% above previous lowest low or- If a new low hasn’t been made within 20 bars lower existing trailing stop by 0.5%.
- The trailing stop is never raised.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Strategy #3 – Stop and Reverse
Always in the market.
Stop and reverse when market switches over the trailing stop.
Trailing Stop;If Long, the trailing stop is the highest of either;
- 7.5% below previous highest high or- If a new high hasn’t been made within 20 bars lift existing trailing stop by 0.5%.
- The trailing stop is never lowered.
If Short, the trailing stop is the lowest of either;- 7.5% above previous lowest low or- If a new low hasn’t been made within 20 bars lower existing trailing stop by 0.5%.
- The trailing stop is never raised.
100% objective rule based strategy
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
Strategy #1 – Triple Moving Average
Strategy #2 – Donchian Channel Breakout
Strategy #3 – Stop and Reverse
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Three Long-Term Trading Strategies
Strategy #1 – Triple Moving Average
Strategy #2 – Donchian Channel Breakout
Strategy #3 – Stop and Reverse
They are all;
- simple
- 100% objective
- verifiable
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
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IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Question:
Can we improve the combined results?
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
2nd Objective: Portfolio of Rule Based Strategies
Question:
Can we improve the combined results?
YES … with money management!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Your SolutionUniversal Principles = Complete Trading Solution
A complete trading solution requires three basic objectives. Your;
1st Objective: Avoid financial ruin ……………………. Money Mgt
- Risk-of-Ruin- Expectancy
2nd Objective: A portfolio of rule based strategies …. Methodology
- Entry?
- Stops?
- Exit?
3rd Objective: A proper mindset to implement your strategy.
- Hope, Fear & Greed ……..... Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
My message today is to understand the
universal principles of successful trading.
Understand them and you’ll knowwhat the professional forex trader knows!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Universal Principles of Successful Trading
1. Money management
2. Methodology• Mechanical/systematic• Discretionary
3. Psychology• Hope• Greed• Fear
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
The Universal Principles of Successful Trading
“This is one of the best books on trading to come along in a long time and I predict it will become a classic”.John HillTraderPresident, Futures Truth Co.
“I recommend reading this book cover to cover several times. It will change your mind about what's important in trading.”Van K. Tharp, Ph.D.TraderAuthor Trade Your Way To Financial Freedom
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
1. Forex - The world’s biggest market
2. Why everyone fails - A trader’s typical journey
3. What you can do about it
Know what the professional forex trader knows,
the universal principles of successful trading• Avoid financial ruin
• Embrace expectancy
• Implement money management
• Trade a portfolio of rule based trading strategies
• Develop a proper mindset
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ATIC Presentations
Learn what the Professional Forex Trader knows
Saturday: Long-term Forex Secrets
Sunday: Short-term Forex Secrets
Workshop: Master Forex Workshop» 15th and 16th May
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ATIC Presentations
Learn what the Professional Forex Trader knows
Saturday: Long-term Forex Secrets
Sunday: Short-term Forex Secrets
Workshop: Master Forex Workshop» 15th and 16th May
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ATIC Presentations
Learn what the Professional Forex Trader knows
Saturday: Long-term Forex Secrets
Sunday: Short-term Forex Secrets
Workshop: Master Forex Workshop» 15th and 16th May
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
ATIC Presentations
Learn what the Professional Forex Trader knows
Saturday: Long-term Forex Secrets
Sunday: Short-term Forex Secrets
Workshop: Master Forex Workshop» 15th and 16th May
Collect a flyer from the NextView Educator booth for more information.
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
The Universal Principles of Successful Trading
• Money Management• Methodology• Psychology
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Email: [email protected]
For either;
• A 28-day free trial to my newsletter or a• Copy of this presentation
Email: [email protected]
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946
Long-term Secrets of Professional Forex Traders
Thank you
and
good trading!
IndexTrader.com.au Copyright © 2010 Brent Penfold AFSL 225946