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What follows is a review of a recently released publication concerning
the day-trading of T-Bonds. In respect for the "no commercial
postings" policy on RT, I have asked the approval of this forum's
moderator, John Boggio, before making this post. At his request, it is
asked that all correspondence in regards to the sale of this product
be directed to the author, Bill Eykyn (a member of this forum), at
t-bondtrader@xxxxxxxxxxxxx Please do NOT make such requests through
the forum.
I have received absolutely no financial compensation for the
preparation of this review.
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T-BOND MANUAL REVIEW
I've been a member of RealTraders for three years. I used to post more
frequently, but, perhaps due to my advancing years, I've lost some of
the fire that it takes to post more prolifically. I am principally a
bond futures trader. I started off with the equities markets some 20
years ago, turned to futures about five years ago, and have been
trading bonds almost exclusively for the last three.
My gravitation towards the bonds might be thought of as largely by
default. The volatility in the S&Ps just made me vomit too many times.
I got tired of being ripped off by the pirates running the New York
markets. The Chicago Ag markets were OK, and a great deal of fun at
times, but I found myself being strongly attracted to the typically
slow, steady pace in which bond futures seemed to trade most of the
time. I found that, to my way of thinking, as long as you knew when
to stay away, the bond market offered the greatest appeal.
Late last year, a new book (or manual , as the author prefers),
entitled "A Hard Way to make an Easy Living" came out. I was somewhat
familiar with the author, Bill Eykyn, in that he had been making a
number of posts to RT. His posts had created quite a stir, largely due
to their self-promoting nature and dogged anti-indicator views.
Although I thought the tone of his posts were often inappropriate, I
still felt that he had some things of educational value to offer. Some
of those things were quite original (or at least I hadn't seen them
offered before). What caught my interest most was the fact that his
market of choice was also mine.
When the manual first came out, I balked at the price and decided to
wait for the opinions of others to surface before seriously
considering its purchase. In early January of this year I posted a
public inquiry and received many more requests that I pass along any
information than I did responses from actual purchasers. The comments
that I did receive from purchasers were more stylistic than content
oriented. It was then that I decided that I was going to have to
obtain a copy and judge for myself.
When it comes to evaluating new books or approaches to the market, the
true acid test for me is always whether or not I can integrate the
concept into my own style of trading. I've spent many years of hard
work developing my "style" and the only reason that it has become so
is the fact that I feel very comfortable with it (as comfortable as
anyone can when trading futures). The overwhelming conclusion that I
have come to with the bulk of materials that I have studied is that
the discussed techniques might be all well and good for others, and
they very well may work quite consistently for some, but for me, they
hardly ever feel comfortable enough that I can start integrating them
with my own. Oh yes, perhaps I can find a little nugget or two of
merit and adapt to my style, but the discussed approaches usually end
up being nothing more than an interesting intellectual exercise. It is
from this perspective that I began evaluating the manual.
The book begins with a quick, cursory, review of what is required to
start a home-based day trading business, such as trading office setup,
equipment required, and software needed. It doesn't take into
consideration a great deal of alternatives, but it probably shouldn't.
If the book is targeted for the beginner, you really don't want to
clutter things up too much. My only complaint about this section of
the manual would be the fact that, in regards to software, an Omega
product is pushed exclusively. In my opinion, there's other options
out there that might be better suited for the newbie . . software that
may be more user friendly with a better support staff and a corporate
culture that caters more to the customer. But I consider this to be a
minor beef. You just can't cover ALL the options when you're writing a
book for the beginner. It would just add to the noise.
The book then goes on to discuss T-Bonds and why they are an excellent
instrument to day-trade (I agree whole-heartedly), the pivot system of
calculating support and resistance, Fib levels and their proper use in
day-trading, pattern recognition and price action (what I would
consider to be the real heart of the manual), a discussion of stops
and money management, reports that can move the market, and a chapter
on brokers and placing orders.
One of the last chapters of the manual walks the reader though nine
consecutive days of trading the bonds in September of 1998 . . . all
the reports that need to be considered, Greenspan speeches, pattern
setups, and support and resistance levels. I found this chapter to be
very helpful in pulling everything together. It does an especially
good job of illustrating the proper mindset necessary to best take
advantage of the techniques taught in the book.
I almost hesitate to make mention of the next particular item, for it
may be construed as a criticism, but it really isn't. Think of it
merely as an observation, and it is a comment directed only to the
American audience. The author is an Englishman and I found myself at
times needing to put on my "Brit" hat in order to follow the flow of
things. It's not a great encumbrance, but it requires an extra step of
interpretation, which bogs one down a bit. For those of us over 40, it
means that we need to flash back to our Monty Python and Benny Hill
days in order to get our English to American translators working at
top speed. Those Americans, with a bit more sophistication, may need
only reflect back to their last viewing of Masterpiece Theater. Those
with neither age nor sophistication will most likely need to call up
their most recent viewing of "Austin Powers". (Oh, I'm gonna get
flamed by the Brits for that one!)
A strong selling point, ESPECIALLY for the beginner, is the fact that
the purchaser is issued a username and password in which to gain
access to a web-site in which the author displays charts and
commentary of recent bond market activity. Being able to see what one
has learned in the context of current price activity is a great
teaching aid. It's a wonderful way to check in and see if you're
interpreting the day's market activity in the same light as the
author.
As an experienced bond trader, what I found most intriguing about the
manual is that it walks one through the process of looking at the
trading day through the eyes of a colleague. In very rapid fashion, I
found myself able to lay his "template" over real-time activity, and
to look at the day's action through the author's eyes. The most
exciting aspect of being able to do so for me, was to see "other
possibilities". I was no longer seeing only the setups that I've
trained my brain to look for over the years, but many, many more.
In summary, I would characterize the manual as a HUGE jump-start for
the beginner. The newbie that successfully practices the techniques
taught in this book will never fully realize how much the author has
truly saved them, both in effort and money lost, by not having to go
down a GREAT many dead-ends before stumbling onto something that is
even remotely successful. No, the book will not instantly transform
you into a successful bond trader overnight. That is still going to
take a great deal of practice, unflinching execution, and some deep
levels of personal soul-searching. But what the manual CAN give you
is a framework for evaluating T-Bond market conditions from a
day-trading perspective, and the best way to exploit them.
For the more experienced bond trader, there is some excellent
food-for-thought contained in the manual. Many points are made that I
have not seen made elsewhere. On the other hand, many, if not most, of
the trading pattern set-ups have been covered in other materials. But,
in my opinion, what makes the work really shine is the way that it all
comes together into a cohesive trading plan. I could see how the
newbie might read it and say "Gee, it looks like this COULD work." But
as an experienced bond trader, my initial reaction is "Gee, this
really WILL work!"
It will definitely join my library of trading materials on the "Very
Best" shelf.
Bob Hunt
All correspondence in regards to the sale of this product should be
directed to the author, Bill Eykyn, at t-bondtrader@xxxxxxxxxxxxx
Please do NOT make such requests through the forum.
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