Factor Update, April 5, 2019
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Peter Brandt entered the commodity trading business in 1976 and is considered by many leading authorities to be one of the best classical chartists and traders.
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This content is for members only
Reviewing trades offers the opportunity to unpack the impact of random probability upon a sequence of trading events. An extremely simplified view of probability theory
relative to trading goes something like this:
A prolonged sequence of futures (or FX, equities, cryptos – pick your poison) trades with a fixed $1000 profit target and a fixed risk of $1000 (normalized for underlying trends) should produce profits in 50% of the trades. A net loss would occur over time due to trading fees.
A prolonged sequence of futures trades with a fixed $2000 profit
This content is for members only
This content is for members only
This content is for members only
This content is for members only
This content is for members only
This content is for members only
The following video comes from one of our Factor Member Webinars where Peter discusses Trading Drawdowns.