A few “recovery” stocks

I will be writing the Factor Update tomorrow and may not release it until Saturday morning. But there are a few equity names I wanted to bring to your attention prior to the opening tomorrow.
Read More

Looking Backwards to Look Ahead

January through March were challenging months for my approach to chart trading. It is always good for a trader to step back from the urgency of the moment and gain perspective. This what the attached is intended to accomplish.
Read More

EUR/USD Update, March 26, 2017

This content is for members only

Update on EUR/USD, March 23, 2017

EUR/USD remains within a tightly confined 24-month trading range. My experience as a trader since 1975 is that extended congestion zones of 10% or less of the underlying value of the stock, futures or equity can propel dynamic trends once they are resolved.
Read More

Interim Factor Update, March 22, 2017

There will be no Factor Update this weekend.
Current positions
The Factor Tracking Account is currently long EUR/USD and short Mar 2018 Euribor.
Read More
Risk Per Trade

Why do you cap your risk to 100bps per trade?

Risk Per Trade

A question from a past member only webinar.  “Why do you cap your risk to about 100bps per trade?”    I thought you might find this interesting.



Consider joining the Factor community where we run a monthly one hour member only Q&A session.  All past webinars are archived on the site to be viewed at any time.



Factor Membership

Peter Brandt is a 40+ year veteran of trading.  Through his Factor Service, members receive:

checkTrading Commodity Futures with Classical Chart Patterns: A free PDF copy of Peter’s classic out-of-print book
checkWeekend Update: 10-16 pages full of in-depth chart analysis and charting commentary
checkAlerts: Detailed information on specific charts as unique opportunities present themselves
checkMarket Commentaries: Communications on specific topics regarding market speculation and trading distributed periodically
checkWebinars: Monthly member-only webinars where Peter speaks about current conditions and fields member questions
checkKnowledge Center: Fast and easy access to current and archived content from Peter’s extensive library of content
checkAutomatic notifications: Email and social media notifications are sent out when new content is published


View your Factor Member options here. You could consider your membership in the Factor Service as just one more trade. If the Factor Service is not of value to you, well, it is just one more trade that did not work.   Through the Factor Service I endeavor to alert novice and aspiring traders to the many pitfalls you will face – and to offer advice on overcoming those pitfalls. My goal is to shoot straight on what trading is all about.  For more information watch my 30 minute webinar where we cover the Factor service in depth.

I hope you will consider joining the Factor community.

Factor Trading - An Introduction




Topix Nikkei Dow - Peter Brandt - Factor Trading

Topix (and Nikkei Dow)

Continuation patterns continue to develop in the Japanese stock market indexes. The Topix Index traded in Osaka (TSE) displays a 12-week continuation rectangle (Mar 2 was an out-of-line movement). While the measured target in Topix is 1633, a swing target of 1775 is possible. Read More

Factor Update, March 19, 2017

This content is for members only

Factor Member March 2017 Webinar

Factor Member Q&A with Peter L. Brandt - Recorded live March 8, 2017

Opening discussion/presentation by Peter - Drawdowns

Live questions from Members
  1. You're measuring DD on closed equity based on weekly closes? 22:23
  2. What do you think the bottom for WTI oil is? 24:18
  3. When you wait for a market to close beyond the boundary of a technical formation, do you actually execute the trade on the open of the following day? Or do you execute it just a few minutes prior to the closing bell? 26:02
  4. You mentioned that you cap your risk to about 100bps per trade. Do you also have a limit on the aggregate risk for the whole portfolio, say 1,000bps or 1,500bps etc? 29:27
  5. If the market touches your stop so briefly that only a part of your position is closed out but then quickly reverses direction and moves in your favor again, do you keep holding your remaining position or do you close it now, at the somewhat-better-than-stop price? 31:08
  6. Do you always have a stoploss order entered during the day for every position?  Do you worry about your stops getting runned by the computer trading? 32:03
  7. What was it that made you go long on the FTSE 100 recently? The breaking of the new high or did you get in prior to this? 34:02
  8. In your latest book you say, you have additional quality requirements to diagonal patterns. Which are those and how do they compare in quality to horizontal — i.e. possible to reach similar quality with diagonal patterns as with 10W horizontal or 6-8W continuation pattern? 35:06
  9. On the stop loss: does make sense to use tec level for Stop loss and or volatility determined stop loss? 36:38
  10. What is your view about the effect of computer/algo trading on chart pattern-based trading over the next several years? 37:17
  11. How often do you use commitment of traders data? How important is it to confirm your chart reading? 38:08
  12. What does "record" mean when you referred to record spec longs and record commercial shorts in the COT data? Does it mean the highest number for the period you're looking at or does it mean the highest number of all time? 39:37
  13. You mentioned that you prefer to trade futures over FX. However, in your 2016 Factor Tracking account, spot forex was traded more often than their futures equivalent. Why is that? 40:15
  14. What securities/assets do you EXCLUDE in calculating your Total Trading Capital? Can those assets included in Total Trading Capital be invested in other things or trading strategies, or should they be sitting in cash with zero risk exposure? 41:16
  15. How many tightly correlated markets do you allow yourself to trade in the same direction simultaneously?  For example short Yen and short Gold? 43:00
  16. With respect to equities do you ever care about valuations or do you just use your process and focus purely on charts. I just don't want to be left holding the bag. 43:54
  17. When you miss a trade do you often trade the retest and if you do, do you put on the trade at the boundary line or a certain % above the boundary line. 44:33
Read More

Factor Update, March 12, 2017

This content is for members only