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Michael Ferguson wrote:
>
> Well, that's my 2/32, I'll just push return and visit the fire
> extinguisher for a mug up.
>
> Inflammably,
> Michael
Michael,
I don't disagree with the technical fundamentals that Roberts mentions.
I do have a problem with how he presents it. :)
1. Nowhere in his literature does Roberts ever mention money management.
To adequately trade these strategies would require an account of
$100,000 dollars or more, in order to survive the max drawdowns
(Remember, you'd be trading a portfolio of markets here.).
Trading this methodology with a $5000.00 account is suicide (IMHO).
Mr. Roberts also speaks in glowing terms of inverted pyramid trading.
Think about that for a second.
I respect your opinion. It is well thought and well put. However, the
question I would ask is, do you feel this knowledge is worth $299 ?
Are there not many books on technical analysis AND money management
that address these techniques for a fraction of what Mr. Roberts
charges ?
A far better bargain would be Curtis Arnold's PPS trading book, which
addresses these issues in a much more realistic fashion. ($45.00 )
Arnold backs up his claims with statistical testing, good money
management, and the technique is still simple and very tradable.
Allow me to mention an interesting item here:
I used to spend time on the FUTRES MAG commodity chat forum. They have
a Ken Roberts trading area. In response to a post in which I voiced
some of my doubts about the veracity of Mr. Robert's generalities,
a trader on that forum told me how utterely WRONG I was, and that
he currently held a position in the Gold market in which he carried
a $15,000 dollar profit. ($5000 initial account)
This trader had multiplied his long futures gains by inverted
pyramiding. He held multiple contracts. He told me he would be moving
his stops up closer in a week or so.
One day later, Gold had the biggest one day drop it had experienced
in five years, followed by 2 more days of savage decline, before Gold
found support.
I never heard from that trader again.
That's a true story Mike. I just don't think Ken adequately prepares
his students.
Walt :)
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