‘Trend Following – A Complete Edge for the Private Investor, Part II’: An IFTA webinar presented by Zaheer Anwari
Introduced by Ron William, Zaheer is co-founder of Sublime Trading which he describes as a ‘’community mentoring professionals’’. The first part of this presentation was delivered on the 15th July 2021 and IFTA member affiliates can view this via video. I suggest you do this before watching this second part of his two-stage talk.
This second presentation lasts half an hour (plus some good questions to follow), he speaks fast and is obviously well-versed running through the topic. The first 15 minutes are dedicated to running through a very brief recap of Part I, and then he delves into new material. He does tend to speak using quite a few clichés and platitudes, like ‘’proven principles’’, removes guesswork’’, ‘’September is traditionally a time of pullbacks’’ and ‘’there are no certainties in any investment’’.
He invests with the ‘Five Cs’, consisting of Clarity; Control; Consistency; Composure; and Compounding. He goes on about the latter at length later on, claiming it ‘’removes egos and mysticism’’, yet I feel that in the current zero interest rate environment compounding has taken a back seat.
His trade entry points are based on a breakout in the direction of the prevailing trend; all his chart examples are based on furious bull markets, perhaps because he’s been bullish on the US stock market since 2009. More helpful are his stop-loss calculations. These are based on the average true range of each separate instrument, calculated over the last five trading days. He then triples this average price range for a cut-out point of that size should the market fall. ‘’Never add to losing positions’’ and ‘’let your winners grow your account’’, he says. His risk management also involves strict adherence to risk per position, per day, and maximum allocation.
He believes in automating the execution process, something he has developed himself, ‘’as it makes it a much more pleasant process’’. He always has damage limitation strategies, especially in Black Swan events like Covid-19. He then explains the services his firm offers: the academies, signal service, scanners and the chance to copy his portfolio. If you want, by going to www.sublimetrading.scoreapp.com he’ll send out a few free goodies.
Tags: Average true range, Black Swan, Probablity
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