THE FOUR KEY PILLARS OF FACTOR

 

The Factor Service provides weekly Updates and periodic special Alerts focused on futures and Forex markets. The specific markets covered by the Factor Service depend upon the markets Peter Brandt is trading or considering to trade in his own proprietary account.  Peter is, first and foremost, a market speculator, as he has been forty years. In a very real sense, the Factor Service is a real time diary of the speculative endeavors undertaken by Factor LLC for its house account.

The Factor Service is founded on four major pillars or themes:
• Classical charting principles – Peter is widely considered to be one of the foremost authorities on applying classical charting practices to futures and forex market trading. Peter has proven classical charting to be an outstanding method to identify trades with an asymmetrical reward to risk profile.

• Active and aggressive risk management -Factor considers risk and trade management to be a far more vital contributor to outstanding performance than is trade selection. What a trader does with a trade is more important than what trades are selected. Risk management begins with capital preservation. Factor advocates a wide range of strategies and practices to cut losses short and allow profits to grow.

• Trading as a business – “The process of Trading” – Too many investors and traders approach market speculation without the rigorous discipline needed to grow a business. Many traders tend to be haphazard and random in their speculative operations. Factor advocates for the organized and routine repetition of best practices. Reduced to its minimum function, trading is a matter of entering orders. A trader is a glorified order enterer. The management of order flow brings together all pertinent components of market speculation – trade selection, timing, leverage and sizing and risk and trade management.

• The human aspects of market speculation – The biggest enemy of any professional trader is self. Successful market speculation is an upstream swim against human nature. Overcoming the emotional pulls of fear, greed and false hope requires constant vigilance and self-awareness. A theme of the Factor Service is the need for all traders to recognize themselves as a detriment to their own success.

These four themes are interwoven into the process by which Peter analyzes trades and executes his trading endeavors.

Peter recommends that Factor members NOT trade any of the themes he trades for at least one year, instead just following his comments on risk management and the human factor. Peter thinks that members should consider Factor membership as just one more trade — that most members have easily lost the cost of a one-year membership on many trades. Then, at the end of one year a member should make one of three determinations:

1. No longer be a member.

2. Continue to be a member and learn from Peter’s commentary on what 40+ years has taught him.

3. Continue to be a member and apply one’s own trading methodology to trading ideas Peter presents.

Peter NEVER recommends that a member simply follow Peter’s trades without applying their own methods and techniques. Peter soundly believes that trading tactics MUST be developed independently by each trader.

Products/Services* Used by Factor LLC

Futures Commission Merchant (FCM)

 

ADMIS

Purpose: Global futures markets and forex

Contact: Email Jolleen Oleson at jolleen@peterlbrandt.com if you’d like to be introduced by email to our contact as ADMISPeter’s comments: For futures I use ADMIS — it is backed by a multi-billion dollar firm, Archer Daniels Midland. I personally am not a big fan of ADM’s platform, so I use the CQG Trader platform for orders and TradeNavigator for charts.

By way of an API feed I can also enter my orders direction on the TradeNavigator platform and the fills flow through CQG to ADM.

 

TD Ameritrade

Purpose: U.S. stocks

Website: www.tdameritrade.com

 

Interactive Brokers

Purpose: Foreign stocks

Website: www.interactivebrokers.com Peter’s comments: Interactive Brokers is an option for equities and futures, but I WOULD NOT use them for forex — their accounting and way of offsetting trades requires a PhD in investigative accounting to understand.Peter does not have a recommendation on any retail brokers for spot forex, select at your own risk.

 

Trading Platform CQG

Purpose: Orders

Website: http://www.cqg.comPeter’s comments: See ADMIS comments.

 

Trade Navigator 

Purpose: Charts Contact: 800-808-3282 or sales@tradenavigator.comWebsite: www.tradenavigator.com Free trial: https://www.tradenavigator.com/getInstantAccess.php?source=brandt Peter’s comments: See ADMIS comments. Excellent customer service. In combination with CQG it can be used to enter orders by point and click.

 

Charts

Trade Navigator

FinViz http://finviz.com – when traveling

*This is informational ONLY. Peter receives no compensation for listing services he utilizes for his trading. Individuals will need to contact each company with further questions about cost, packages, and other offerings.

 

Services* you should know about

 

FundSeeder.com 

Website: www.fundseeder.com

Watch our interview with Jack Schwager here, timestamp 49:11 begins details on FundSeeder:

Peter’s comments: For traders who want to obtain important metrics on their performance, compare themselves to other traders, develop a documented track record and/or position themselves to become a money manager, FundSeeder.com is an awesome way to go.

 

Real Vision TV & Publications

Website: https://realvision.com & https://www.realvision.com/publications 

Peter’s comments: RealVision is the brain child of Raoul Pal and Grant Williams, both giants in the world of international finance and trading. I am honored to be a part of both RealVisionTV and RealVision Publications. Both sites were created as an alternative to brainless information content provided by CNBS, Bloomberg and the like.

 

Bank Credit Analysis 

Website: www.bcaresearch.com

 

Tech Charts Research & Trading 

Website: https://blog.techcharts.net

Peter’s comments: Aksel is a personal friend who does his technical analysis from UAE and Turkey. Aksel has spent time with me in Colorado Springs and is a member of small private group of traders with which I am connected. Aksel is a “MUST” follow if you trade global equity markets. You can find Aksel on Twitter @TechCharts and follow his blog postings on his website.

 

Nautilus Research

Website: http://www.nautilus-cap.com/technical-analysis/

Peter’s comments: If you have an extremely well financed trading account, I cannot recommend the research from Nautilus more highly. Nautilus focuses on a specialized field of research known as Analog Correlates. If I was not a classical chartist I would focus on analog year comparisons. This is a highly rewarding source of market insight. Nautilus provides a wide range of research in addition to analog year correlations.

 

The Felder Report 

Website: www.thefelderreport.com

Peter’s comments: Jesse Felder is an extremely talented trader who understands global macro concepts. Similar to Nautilus, the Felder Report is priced at a premium commensurate with its value and is intended for institutions and professional traders.

 

Max McKegg 

Email for more details: max@enterprise.net.nz

Peter’s comments: I am always looking for traders who see the same things on a chart as do I. Max McKegg provides a daily technical review of the forex markets, focusing heavily on the Asian currencies. Max is a classically trained chartist, but he also has knowledge of Elliott Wave, a technique I know nothing about.
Helpful reference material
http://www.fxpro.co.uk/trading/calculators/pip

 

*This is informational ONLY. Peter receives no compensation for listing services he utilizes for his trading.

Individuals will need to contact each company with further questions about cost, packages, and other offerings.

 

Recommended Books

Richard Schabacker 

Technical Analysis and Stock Market Profits 

Either edition 

Edwards and Magee

Technical Analysis of Stock Trends 

Only 6th version or earlier – only first half of the book

Jack Schwager

Market Wizards series

Steven Drobny

Inside the House of Money – European version of Market Wizards

Jack Schwager 

Market Sense and Nonsense: How the Markets Really Work (and How They Don’t)

Nate Silver

The Signal and the Noise: Why So Many Predications Fail – but Some Don’t 

Nickolas Darvas

How I Made $2,000,000 in the Stock Market 

Peter L Brandt 

Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading  

Anything by Michael Lewis 

Malcom Gladwell

Blink: The Power of Thinking Without Thinking 

Mark Douglas

Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude 

Edward Chancellor 

Devil Takes the Hindmost: A History of Financial Speculation 

Brett Steenbarger

The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist 

Steve Nison 

Japanese Candlestick Charting Techniques 

George Soros 

The Alchemy of Finance 

Nassim Taleb

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets

Recommended Books – New to Forex and Futures Markets  

Currency Trading for Dummies 

Trading Futures for Dummies 

Jack Schwager (2nd Edition released Jan 2017)

A Complete Guide to the Futures Market: Technical Analysis, Trading Systems, Fundamental Analysis, Options, Spreads and Trading Principles

Click: Interview between Peter Brandt and Jack Schwager regarding this book