Monday, February 18, 2013

NEW - The Trading Triangle - Addendum

My e-book, The Trading Triangle, was originally written in late 2010 and fully detailed my own trading method, my chart set up and the scans I use to look for potential opportunities. Traders all around the globe have purchased the book, and it was been well received (refer to testimonials here).

One of the commitments I made to everyone was that, in the event that there were any future updates or revisions released to the book or my method, they would receive the update free of charge.

The system has stood the test of time, and has generated profits for me since I started formulating the strategy several years ago, following my initial forays into the world of trading and the markets.

However, there are two basic market conditions in which trend following systems suffer:
  • When there are repeated failed entry signals;
  • When there are sharp 'V' shaped reversal in markets, that the inherent logic in the system parameters struggle with.
I suffered a drawdown in 2011, in which the prevailing general market conditions (lack of a trend, repeated failed breakouts, coupled with high volatility) undoubtedly contributed. The system in its basic configuration made a profit in 2012, and has started well in 2013, however following my loss in 2011 I have spent a considerable amount of time over the last year or so looking into how the system can be improved, without changing the basic parameters or trend following philosophy. This involved both backtesting, re-running my own performance logs from actual trades I placed with the refinements included, as well as testing the changes within my own trading.

The results of my research are crystallised into an small addendum to the e-book, which is now available. This is the first change to the basic method since I formulated my system several years ago. Anyone who has previously purchased the e-book will receive a free copy of the addendum via email over the coming days. Similarly anyone who buys the e-book going forward will be able to download the e-book and the addendum at the same time.

I have purposefully not updated the performance results for the basic system since the end of January 2013 the due to the impending release of the addendum. This will be updated in due course. The changes to the overall system are minimal and simple, yet the results have been significantly improved, both in back testing and in my own results while trading and 'proving' the changes.

For more details on the e-book click here. Enjoy!

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