‘Slow Trader’ allows investors the opportunity to access a short-term trading (hedge) fund, held in trust.
Why an opportunity, and why short-term trading is not possible for most people:
- Firstly, short-term traded funds are not readily available. Moreover, expert (and hopefully successful) short-term traders charge a lot – up to 50% of profits and large participation fees.
- Secondly, short-term trading is a difficult skill to master. It takes several years for a trader to graduate from the ‘beginner’ level, through ‘intermediate’, to ‘expert’. And, expert is where all the capitalised reward is found. In other words, short-term trading, in contradiction to its name, takes a long time to learn.
- Finally, learning the short-term trading skill is often, through the beginner and intermediate stages, financially penalizing.
From the 1-hour chart the fund trades:
- Currency pairings GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CAD, NZD/USD, GBP/JPY – long and short.
- Commodities Gold and Oil – long and short.
From the 5-minute chart the fund trades one of the currency pairings mentioned above. (The currency pairing traded from the 5-minute chart is excluded from the hourly trade.)
For each of these I’m looking for an edge:
- The principal trading advantages that I use are probability, context and price action.
- Commodities also use probability, context and price action but are also traded inline with the COT report.
The 1-hour chart is used in preference as this provides several trading opportunities per day. This means that trades can be open from several hours, over night but never over a weekend.
My page ‘GLEM Trading Strategy’ is written with the 5-minute chart in mind but applies equally to the 1-hour chart and is the essence of how I approach probability, context and price action.
(For those interested in the longer-term opportunity, Nick’s qualifying UK shares are published quarterly through this blog and guidance on the COT will also be given as the COT occasion provides – the COT cycle for each commodity coming round independently a few times a year).
I provide an annual detailed report on the fund and a semi-annual ‘how goes it’ review.
The goals of the fund are:
- Not to lose money (by trading in accordance with my ‘GLEM Trading Strategy’ rules)
- Increase the fund by 30% (as a minimum year on year)
- Compound the fund year on year