How I lost $250,000 in One Second

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I was being pushed, shoved, and yelled at, but I still fought to get there.  Unfortunately, when I got there, I lost $250,000 in one second. I think it might have set some kind of record for a huge loss. Once I looked up how big the stack of 100′s would be, all 2,500 of [...]

2 Ways ETF’s are Different from Plain Old Stocks

The biggest change in traded products over the last 5 years has been the huge, huge boom in Exchange Traded Funds (ETFs).  ETFs aren’t totally new, but in the last 5 years, the number – and variety – of ETFs exploded from a handful to many hundreds and hundreds. ETF’s take active trading ideas and [...]

Why the next 10 years will be known as the Golden age of Trend Following

Amber Waves of Grain as they are being co-opted by Wall Street

One of the strangest events of the last few years has been the massive movement in the entire commodities complex. But if you talk to nearly anyone about why commodity prices are going up, you’ll hear about huge demand out of China and other emerging markets.  What you don’t hear about is the massive influx [...]

Long Gold Position due to greatly increase profits tonight

The Trendfollowing101 system uses trailing stops. The stops are simple, but have worked quite well over the last few months. Gold is in a historic rally. Some gigantic part of this rally happened in just a few days in early August.   Gold went up nearly $200 per ounce in 9 trading days from August [...]

Swiss Franc: 185 days, $22,810

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It took over 6 months, but we are finally out of the Swiss Franc Trade. The stop was hit last week, after entering the market on 2-22-2011. This trade ended up making a truckload of profits, $22,812.50.  That’s about $120/day, even on weekends. We don’t see many trades of this size and duration.  Nobody does. [...]

Short S&P 500: Profitable

The S&P 500 moved in our favor quickly and for a rather large amount of money. We’re already making $3,250 per contract on intial risk of only $1,112.50.  This gives us a reward to risk of nearly 3 to 1 – and the trade isn’t over yet! Work the trend trading stops, but this trade [...]

July was a good month for Trend Followers

July was a great month for trenfollowing.  The major funds all posted gains, and some of the gains were extremely large. Here are some of the returns for big-name Trendfollowers: Dunn Capital: 19.93% Hawksbill: 6.92% Man AHL:  .2% Each of these funds have different levels of risk, and some of them are very large.  Usually, [...]

30 Year Bonds – Profit Taking Stops moving up

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The 30 year bonds are in a strong rally, and over the next several days, the stop will be moving up dramatically.  The 10 day low will move up from 130-18 to 134-02. For a short term trend following system, this is big money at $2,500 per contract. Not bad for a trade that’s just a [...]

Why trend trading exits can be hard: Crude Oil case study

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Oil!  Crude oil moved hundreds of points in the last week.  Since the system was short, this downward move plowed tons of money into the account. But the system has not moved the stops yet, despite the huge move. You can see here just what happened in crude oil.  The huge move happened in just [...]

Wild Week in U.S. Bond Complex

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There was lots of action everywhere in the markets – but the U.S. Treasuries continued their incredible rally in the last 1/2 of the week.  We’ve been long the bonds (USU11).  Check out this market action in the 30 year bond:   Simply incredible market action that’s great for trendfollowers.