Tag Archive for: Trade Management

Which aspect of trade management do you find the biggest day to day struggle?

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This content is for members only

Software or tools to track and analyze your trades?

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This content is for members only

Tweet Storm

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While on Twitter last night, I engaged followers in an unscripted Q&A session.  The exercise was quite enjoyable in fact and we thought we would share the experience on the website today.    Here is a transcript of that Tweet Storm for you.

 

 

Factor Membership

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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

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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

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losing Trades - Peter Brandt Factor

How much patience should a trader have with a losing trade?

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How much patience should a trader have with a losing trade?

  The question on losing trades, all traders must answer for themselves, and there really is no right answer. The answer for any given trader must depend upon his or her trading approach, markets traded, risk tolerance and other factors. For me, the answer to this question is quite simple and multi-layered.
  • My initial risk per trade seldom exceeds 70 basis points and is limited to 100 basis
  • I aggressively advance protective stops within days (sometimes hours) after entering a trade.
  • My goal is to bring a trade to as close to breakeven as possible, as quickly as possible!
Read More

Taking Profit – A Trader’s Challenge

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Taking Profit

The following is a discussion on Taking Profit from our member Q&A feature at Factor Trading.

 

Question:

Your reports on markets and discussions surrounding the more thorny issues of portfolio/trade management and emotions are without parallel. I am writing you in hopes of some advice. I am having problems with my trading in the sense that I often take my profits on a trade before it reaches my target, sometimes well before the target is reached. In other words, I am not being disciplined enough with trades that are going in my favor. Is there anything you can suggest (a book, a trade process, etc.) which can help me improve and work on my trade discipline? Thanks very much.

–Factor member, London

 

Response:

You describe a challenge that faces all discretionary position traders at some point in their careers. The temptation to take profits in a trade are overwhelming, especially during difficult trading periods and drawdowns. After watching the initial early profits on a few trades turn into losses creates a great emotional urge to grab a quick profit the next time one becomes available.

Ultimately this is a challenge every trader must work out for him or herself. There is no easy answer — what you describe is basically an inner battle that must take place with each trader. I engaged this inner demon early in my trading career — and I must admit that the “take profits before they disappear” inner voice makes itself heard even today. The upstream swim against human nature never ends — although it does get easier. Base emotions are never really defeated for a discretionary trader — the best we can do is to manage counter- productive urges.

I must start off by emphasizing that being a “target trader” is not for everyone. I know very successful traders who seek a three or four-day price surge (or break) and then step aside and look for other similar opportunities. I also know successful traders who would not think about “target trading” — they want to ride out a trend for as long as it continues (using various trend-following techniques).

If it is your strong desire is to be a “target” trader, let me suggest simple moving averages may be a way to get there — but you must look at this challenge as a marathon (requiring several years of development) and not a quick-fix.

If your account allows for a multiple-contract position futures, you might allocate at least one contract initially to a simple moving average system of your design. Perhaps you stay with the position as long as the 8-day or 14-day or 21-day or whatever moving average confirms the trend — of course then taking profits at the target if that is your goal. It is quite easy to split an equity or spot forex position into tiers for the purpose of delegating a partial position to a trend following model.

 

Hope this helps.

plb

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Factor Membership

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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

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Announcing Factor – Tech Charts Association

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Announcing Factor – Tech Charts Association

 

Today I am extremely proud to announce the association of Factor Trading with Aksel Kibar’s – Tech Charts service.  We recorded the below video yesterday to discuss the association and what members could expect from Aksel and the Tech Charts service.  Below the video are details on how to follow Aksel and his service until the new service goes live.  I encourage all to check out his global equity market reports.

 

 

plb

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More About Tech Charts and Aksel Kibar

 

Aksel Kibar is a Chartered Market Technician (CMT) with more than 15 years of experience as a classical chart trader and global equity market analyst. He has worked for various companies throughout the GCC and MENA regions during much of that time.
For more information, see his blog at :  https://blog.techcharts.net

 

Join his free mailing list and be alerted on when he publishes his free (until launch) Global Equities Market Report and all classical chart break out alerts.  Sign up here: >>  Link

 

On Twitter, follow:  https://twitter.com/TechCharts

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Not So Sweet

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Sugar Futures – Not So Sweet

The Mar 2018 Sugar Futures contract has completed a 10-month failure top on the weekly and daily graphs.

 

Sugar Futures - Peter Brandt - Weekly Chart

 

The daily chart displays a possible 3- week bear pennant.  I am interested in shorting Sugar Futures, even though it has fallen a long way from the Oct 2016 high.

 

Sugar Futures - Peter Brandt - Daily Chart

 

 

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Factor Membership

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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

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Factor Member April 2017 Webinar

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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
Read More
Risk Per Trade

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

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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.

 

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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

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What would you tell your younger self - Peter Brandt - Factor Trading

What Would You Tell Your Younger Self?

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This video except comes from our monthly Member only Q&A.  The question was:  Looking back over your trading career – What advice would you give to your younger self?   I thought you might find this interesting.

 

 

 

 

 

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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

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