Factor Member Q&A with Peter L. Brandt - Recorded live April 13, 2017

Opening discussion/presentation by Peter 

• Factor Tracking Account Update through April 13, 2017
• Drawdowns
• Underwater Curve
• Factor Chart Pattern Trading Grid: Trade Management / Pattern Eligibility Time Framing

Live questions from Members

1. In last months Q&A, you mentioned having reduced the trades from 20 to about 8 per month (you have noted this a number of times before of course) due to the break outs not being as successful in years past. You have resorted to 10+ week patterns. Based on that, does it stand to reason there is a substantial lessening in the amount of money that can be made trading classical patterns vs. years ago? 24:49
2. In trading grains (corn, soybeans, wheat), is seasonality a useful information? Does Peter rely on such data in addition to classical charting? 26:34
3. There is an alert on TLT which says a close above 123.31 is the trigger. Should a limit order to buy be placed at 123.31 with the target being 128.93 as shown on the alert or do you wait for the close to be above 123.31? I do not see a recommended stop, so I would think it to be the double bottom around 123. 28:39
4. What’s your view on Sugar? 32:12
5. Gold has broken up this week and USDJPY has broken down — the negative correlation between gold and USDJPY continues.  How much longer do you think this correlation will continue? 34:05
6. From observing your approach, you seem to primarily trade trends. Have you every thought about trading ranges? 35:09
7. What do you think of  EUR/SGD? 36:22
8. As a discretionary trader, how can I know I have an edge? As a chart pattern trader, do I need to do the backtest? 37:43
9. Do you believe the markets are or can be manipulated by the "market makers"? Do you consider this in your trading? 39:03
10. Is there a way to trade volatility? Surely, it will lift significantly at some point, VIX? 40:31
11. Lets say with intro of quants and computer programs to do the trading, do you believe chart patterns is becoming obsolete. In old times, market was 100% psychology but computer and quants take psychology out of market and their share of trading is increasing, would patterns still be relevant in future? 41:11
12. Bonds broke out to the upside and small caps look weak. But you're not in either? 42:25
13. You spoke glowingly about your being able to have a life as a trader. You have also mentioned it is now very competitive to trade. Would you then recommend that an individual in 2017 make a career of being a trader as you are? 43:18
14. Would it be helpful to learn a programming language to be able script simulations on potential filters, rules, etc. 44:43

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