I have enjoyed working on the blog this year and exchanging ideas with many of you. I hope you have found some of the articles to be useful in your trading. I look forward to exploring new tools, concepts, and insights with you when posts resume in January.
Best wishes for a happy holiday season and a prosperous 2013.
Brian Johnson
Copyright 2012 - Trading Insights, LLC - All Rights Reserved.
About Brian Johnson
I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers.
I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies.
In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years. I have also written four books on options and derivative strategies.
Thank you Brian for some great insights this year. Well done on your article too – look forward to reading it next year (the magazine takes a while to get to Tokyo stores!).
As a forex trader it’s frustrating not being able to try out all of your ideas because of volume issues etc. in FX, but I’ve learnt a lot from your more generic blogs on position sizing and such, and managed to make a hybrid Kaufman Efficiency Ratio using 6 fib periods (like a SWAMI chart) for Metatrader.
I use it to avoid taking positions that are too overstretched at the time of entry and currently looking at getting different daily/weekly readings to work out some kind of relative strength – still working on it…
Anytime you want to write about some FX specific models – please do!
Have a good break – your work is appreciated!
Merry Christmas
JD
JD,
Thank you very much for your comments. The Kaufman Efficiency Ratio should effectively protect you from entering low probability trades during overbought and oversold environments. I can see that it would be useful as a relative strength metric as well. Keep us posted on your progress.
I do not trade FX directly, but I do trade currencies extensively via the futures market. The cross-currencies are not available in futures, but the US dollar based contracts are all liquid and have the advantage of volume and open interest data. Most important, all of the futures markets have weekly COT data, which is very useful in identifying extremes and turning points.
Given your expertise in FX, you might consider trading currency futures as well, or at least analyzing the price, volume, OI, and COT data for futures, when trading comparable FX pairs. All of the technical indicators should be applicable to currency futures, but you would need continuous contract data.
Thanks again for your feedback.
Happy Holidays,
Brian Johnson