Diary of a Professional Commodity Trader Lessons from 21 Weeks of Real Trading_13 doc

Appendix AFactor Trading Plan Signals Table A.1 contains the signals and trades of the FactorTrading Plan from December 7, 2009, through April 20, 2010.. The tables list variouselements

Appendix A

Factor Trading Plan Signals

Table A.1 contains the signals and trades of the FactorTrading Plan from December 7, 2009, through April 20,

2010 The results of the trades open as of April 20 aremarked-to-market Please read the disclaimers in theAuthor’s Note for a complete explanation of theperformance reporting

TABLE A.1

Appendix B

Quick Reference to Charts

The following tables are intended to be a quick referenceguide to the charts in this book The tables list variouselements of classical charting principles, trading signals,and trade management techniques used by the FactorTrading Plan and where they can be found in the book

Table B.1 lists the charts in the book according to whichclassical chart pattern they illustrate

TABLE B.1 Charts by Pattern

of signal generated and the appropriate trade managementstrategy.

TABLE B.2 Charts by Signal Category and TradeManagement Technique

Appendix C

Recommended Resources

Barrie, Scott, The Complete Idiot’s Guide to Options and

Futures, 2nd ed New York: Alpha Books, Penguin Group

(USA), 2006

Brandt, Peter L (with Bruce Babcock), Trading

Commodity Futures with Classical Chart Patterns.

Sacramento, CA: Commodity Traders Consumer Reports,1990

Chicago Board of Trade, Commodity Trading Manual.New York: AMACOM, 1999

Edwards, Robert D., and John Magee, Technical Analysis

of Stock Trends, 8th ed Boca Raton, FL: CRC Press,

2001 [Note: The author uses the fifth edition of this bookfor personal use.]

Elder, Alexander Trading for a Living: Psychology,

Trading Tactics, Money Management New York: John

Wiley & Sons, 1993

Kiev, Ari, The Mental Strategies of Top Traders: The

Psychological Determinants of Trading Success.

Hoboken, NJ: John Wiley & Sons, 2009

Kiev, Ari, Hedge Fund Masters: How Top Hedge Fund

Traders Set Goals, Overcome Barriers, and Achieve Peak Performance Hoboken, NJ: John Wiley & Sons,

2005

Lewis, Michael Liar’s Poker: Rising Through the

Wreckage on Wall Street New York: W.W Norton &

Company, 1989

Lewis, Michael The Big Short: Inside the Doomsday

Machine New York: W.W Norton & Company, 2010.

Direct, 1999.

National Futures Association, Opportunity and Risk, An

Educational Guide to Trading Futures, 2006, PDF

download at information/publication-library/opportunity-and-risk-entire.pdf

www.nfa.futures.org/NFA-investor-Schabacker, Richard W., Technical Analysis and Stock

Market Profits: The Real Bible of Technical Analysis

Hampshire, UK: Harriman House, 1998

Schwager, Jack D., Market Wizards: Interviews with Top

Traders Columbia, MD: Marketplace Books, 2006.

Schwager, Jack D., New Market Wizards: Conversations

with America’s Top Traders New York: John Wiley & Sons,

1992

Schwager, Jack D., Market Wizards New York:HarperBusiness, 1993

Teweles, Richard J., and Frank J Jones, The Futures

Game: Who Wins, Who Loses, & Why New York:

McGraw-Hill, 1999

In addition to the extremely insightful and informationalbooks cited previously, I recommend a few services thatprovide web-based trading platforms, price quotes,charting capabilities, and other research

FactorTrading.com: This is the official web site

of Factor LLC The web site attempts to identifyand report on the best examples of classical chartpatterns in the commodity and forex markets.Periodic chart stocks are also featured

Mercenarytrader.com: This quirky and brilliant

web site is written for professional traders by acouple of skilled professional speculators (usingpseudonyms) Mercenarytrader provides unusualmacro analyses of markets and global economicsthat break the mold of conventional wisdom Theauthors/traders frequently blow holes through thesacred cows of Wall Street Loaded with great

Trade Navigator: By Genesis Financial

Technologies, Colorado Springs, CO (800)

809-3282 For the money this is the best and mostuser-friendly quote and charting platformavailable Actual trading can be executed from theplatform through selected futures commissionmerchants (FCMs) Live customer support isreadily available and extremely knowledgeable

Commodity Research Bureau: I grew up as a

trader with CRB products and services CRB hasbeen serving the commodity industry withexcellent resources for more than 70 years.CRBtrader.com provides a multitude of valuablemarket research and quote and charting functions

Barchart.com: This is a free web site with quote

and charting capability When I am on the roadwithout my own computer I stay in contact with thecharts through Barchart.com I weekly print off thecharts for the markets I will be closely monitoringfrom Barchart.com, using the “Classic Style Chart”setting I then keep these charts up to datethroughout the week by hand

Author’s Note

This book is educational and not intended to promote anyproduct or service of Factor LLC now or in the future Monthly performance data for the period covered by thebook represents a combination of data and not the tradingactivity of any specific account The combination of dataincludes:

An exempt commodity pool managed by FactorLLC

Periodic trades in a proprietary account Management of trading signals according to therules and guidelines specified by the FactorTrading Plan

Because no specific account has fully reflected thesignals and trades reported in Part III of this book, theperformance data reported herein should be considered ashypothetical However, the performance reported in thediary portion of this book in Part III closely mirrors thetrading performance of the actual exempt commodity poolmanaged by Factor LLC Past performance is notnecessarily indicative of future results

Factor LLC traded proprietary accounts from October

1981 through April 1995 From October 1981 throughMarch 1991 the proprietary accounts were controlled solely

by Factor LLC under the trading program or early versions

of the trading program represented by this book (see theperformance capsule of Factor LLC in Figure AN.1)

FIGURE AN.1 Factor LLC Performance, October 1981–September 2008