Investing in Drawdowns

mikeriley said:
In reading The Trend Following Bible, the author Andrew Abrahams details his Trend following/compounding strategy in investing in Hedge Funds that are currently in a drawdown period, but have positive returns long term.

Mr. Abraham outlines how top CTA's operate to incorporate effective methods through money management protocols, stringent risk controls, that allows them to catch big trends, while limiting losses on unprofitable trades.

I found this read better than expected, as he took the time to outline successful strategies and tactics of all the prior Turtle traders who started their own Hedge Funds after the Turtles program was disbanded.

For detailed analysis to identify possible candidates for this approach, just examine performance statistics of CTA's and Hedge Funds at https://www.iasg.com

https://u1lib.org/book/2156746/a12c6f

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THAT could work;
most millionaires in the stock market made it by buying every month for 3o or 4o years.
Some hedge funds are no doubt worth it;
paying the average fund 2 + 20 %; those millionaires mentioned above never paid those hi fees.
Paul tudor Jones, i'm sure is worth it; but few do as well as he has:caution::caution:
 
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Scataphagos said:
Sounds like their sales pitch all right.... doesn't work out so much as investors hope.
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Good Morning Scataphagos,

I am breathing and living and going to my grave (hopefully not soon) with Price TA.

I have no other choice but Price TA. Everything else cost too much money and too much thinking.

Thank you
 
SimpleMeLike said:
Good Morning Scataphagos,

I am breathing and living and going to my grave (hopefully not soon) with Price TA.

I have no other choice but Price TA. Everything else cost too much money and too much thinking.

Thank you
More...

The trader's objective is to "have your money in tune with the market's moves" as best you can.

With Price TA, you can see...

1. Support and Resistance
2. When the market is in buy or sell mode and when/where that changes.
3. What else is there to know?

With all that you can hopefully pick your way through...

Good Luck.

ED_U.PNG


Here's the 30 min ES currently...

Line A-B is a "rising bottoms support" line and that the market is in a "buying channel" until it breaks line A-B.

Line C is a "rising tops resistance line". Notice it doesn't go all the way to the top of the small channel... indicating the rally is "losing steam"

Lines D and E form a "consolidation triangle/wedge" which breaks out to downside

F = price is currently in "selling channel". Notice the apparent breakout to the downside indicating selling may be picking up steam here.

That's all part of "Price TA". Hopefully with all that you can make a good play or two.

Good Luck.
 
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Scataphagos said:
The trader's objective is to "have your money in tune with the market's moves" as best you can.

With Price TA, you can see...

1. Support and Resistance
2. When the market is in buy or sell mode and when/where that changes.
3. What else is there to know?

With all that you can hopefully pick your way through...

Good Luck.

View attachment 292917

Here's the 30 min ES currently...

Line A-B is a "rising bottoms support" line

Line C is a "rising tops resistance line". Notice it doesn't go all the way to the top of the small channel... indicating the rally is "losing steam"

Lines D and E form a "consolidation triangle" which breaks out to downside

F = price is currently in "selling channel". Notice the apparent breakout to the downside indicating selling may be picking up steam here.

That's all part of "Price TA". Hopefully with all that you can make a good play or two.

Good Luck.
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Hello Scataphagos,

Thank you very much for the chart mark up. I see it well sir. Very well drawn.

That is more than enough for a play or two. Thank you
 
SimpleMeLike said:
Hello Scataphagos,

Thank you very much for the chart mark up. I see it well sir. Very well drawn.

That is more than enough for a play or two. Thank you
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This kind of stuff goes on every day. When you learn to read it you can play it with low risk. (It's not always so "clearly indicated" but most of the time it is for at least part of the day.)
 
Scataphagos said:
This kind of stuff goes on every day. When you learn to read it you can play it with low risk. (It's not always so "clearly indicated" but most of the time it is for at least part of the day.)
More...
Hello Scataphagos,

TA Price works well on all bar types right? Range, Tick, minute?

I do not like minute bars anymore, too much waiting around and anxiety. I need to be in and out when the correlation occurs.
 
SimpleMeLike said:
Hello Scataphagos,

TA Price works well on all bar types right? Range, Tick, minute?

I do not like minute bars anymore, too much waiting around and anxiety. I need to be in and out when the correlation occurs.
More...

Yes... all markets... all charts.... all time frames. Tried tic charts once... didn't like 'em. Too manic. You don't need to wait for a bar to be completed, you know.
 
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