The ‘Slow Trader’ fund has taken on a few changes over its time. We have achieved a gain of over 15% a year, reasonable but short of my ambition for the fund. Over 30% a year is acceptable. We had ventured into equities, taken on the commodities and, more recently, we mixed with the currency markets. What is more important is the system by which we trade. That is the area that has seen the biggest change. And rightly so, these things don’t develop overnight. Therefore it’s not so much the ‘what’ but more about the ‘how’. The how is already in our ‘how we trade’ page. This page gives a glimpse only and is meaningless to anyone that is not a price action trader, and even ‘they’ differ wildly in approach. It understands charts through context, set-ups and price action. And it works.
My own trading time has been delayed over the last 12 months as James and I traded very small for many hours a day learning the ropes of this form of trading. Pop-in a significant renovation of our family business and, well no excuses, but time goes. Moreover, I trade three accounts. An account for grandchildren, a payment account and the slow trader fund. I trade the grandkids account at the beginning of the month until I achieve the return I’m after and then do the same with the payment account. Only then do I move onto the fund; this may or may not leave much of the month left for the fund.
The best way to provide more trading time for the fund is to trade a higher timeframe. Obvious, but I didn’t want the distraction of this as I was developing and remodelling my price action system.
Currently, we trade a 5-minute chart and on one item; this provides several trades a day on average. I scale-in on some of the trades which increases entries but is mostly within the umbrella of one trade. If we trade the fund on a higher time frame – a daily chart being our most sensible option – then we will need more items to trade. Price action can trade anything. Our ‘in-trade’ daily chart duration would be a few days to the extreme of a few weeks. Equities would require the consideration of annual results and other business calendar events. I’m therefore favouring a commodity, S&P and currency trading list. As follows:
These provide us with enough items to give ample trading opportunities from a daily perspective. More importantly, through this higher chart, we are not jostling for trading time with the other accounts. Our risk, probability and reward criteria will not change. I think we are ready for this and look forward to its introduction at the start of the New Year, 2017.
Merry Christmas and a happy (which for us means prosperous) New Year.