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BLL495@xxxxxxx wrote:
>
> RT's:
>
> I have a friend that ordered materials from Kenny Roberts. They asked me
> what I knew and I had never heard of him. Do any of you have information on
> him? Thanks, Brela
They will get a course that teaches buying bottoms after a 1 year low;
basically buy after a higher low, when the market subsequently breaks
the pivot high between the 2 bottoms. Also trade breakouts from narrow
side ways channels. These patterns arent' defined specifically. it's
suggested that the student papertrade for a few months and then will
probably be ready to dive in "when they feel ready". Of course if
they've had some big wins in that 3 months, they think they've
discovered the $ printing press.
My personal opinion, while not rigourously testing "123 bottom and
tops", is that you could make a winning system out of them.
The biggest problem is that there is *no* money management teaching.
The concept of a drawdown is essentially not mentioned. Tell your
friend to get a couple other books. Like R.Gallagher's Winner Take
All. I think the second part of this book is a good illustration of mm,
using a sample system. I think most newcomers to trading would be in
awe of the drawdowns that simple technical systems can dish out, evne if
they are profitable in the end.
V. Tharp's book, previously mentioned is also good as an outline of
issues they need to address in their system.
Roberts also likes buying OOM options. Certainly at times this can pay
off. If you can put a small portion of your account on ea. position,
and perservere for how ever long it takes, maybe you could be net
profitable just from the rare windfall. I am somewhat skeptical of his
teachings - buying strikes at the 50% retracement level (daily and
weekly) and holding til that is hit come hell or declining premiums,
just increases the likelihood that the opt. will expire worthless.
Also, he presents *no* info in the first course (and perhaps not even in
an add-on opt. course) on implied volatility, etc. I remain somewhat
skeptical of his option strategies, more so than the futures patterns.
Then again there's a lot of KR students who cleaned up in gold or coffee
(at least if they liquidated at the right time).
Tell your friend for most, it's not near as easy or sure-thing as
Roberts makes it sound. And that they definately need mm info from a
different source.
Conrad Bowers
Conrad Bowers
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