How to Trade Commodity and Financial Futures for a Living!
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How to Trade Commodity and Financial Futures for a Living!

How to speculate in financial futures and commodities with modest capital - and contained minimal personal loss exposed.
3.6 (19 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
1,260 students enrolled
Created by Scott Brown
Last updated 1/2017
English
Current price: $10 Original price: $200 Discount: 95% off
5 hours left at this price!
30-Day Money-Back Guarantee
Includes:
  • 2.5 hours on-demand video
  • 1 Article
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Estimating profits on your futures position will be a snap.
  • Hammer the market with the most powerful toolkit of futures market hedging strategies available on planet Earth.
  • Deploy the Gyroscopic portfolio to shield against downside risk with universal diversification from seven completely unrelated industries.
View Curriculum
Requirements
  • Basic Math is needed for this course.
Description

Can $5,000 Grow into More Than $15 Million in Futures?

The Bestselling New York Times recognized financial classic “Market Wizards” Documents That Ed Seykota Did Just This [on page #158]!

SUBJECT: Introducing a Controlled Leverage Approach to Futures Risk!

Hello fellow Main Street investor,

You Have To Be Thinking... There Must Be a Better Way?!

I can't tell you how many times I did the math.

I did it over and over again, because I just couldn't believe the numbers that kept popping up —68%, 150%, 233%, even 488% profits!

So I referred back to the traders I had studied who developed these strategies; men like Stanley Kroll and Ed Seykota. I wanted to make sure that these numbers are right.

I concluded that if anything they were on the low side.

Here's a fact: In all of my 23 years of investment experience, I have never seen more flexible possibilities in not just wealth building but also risk management.

This training has it all — big hits, fast runs, crazy yields, and solid long-term vision.

Then again, you could also lose every dime you put into the futures markets.

But here's the kicker: You only invest a very small amount of your money. And that is only after you practice risk free in a simulated trading environment I have prepared especially for you.

Discover how to make small tests like oil wildcatters do. Never risk more than a tenth of your trading capital to step firmly on the road to total financial freedom.

The possibilities are endless.

You can earn substantial investment returns that over time can add up to millions of dollars — all the while knowing 90 percent of your money is safely tucked away in secure guaranteed investments of your choosing!

A Tale of Two Investors

Let me illustrate the tremendous money-making power of Bulletproof Futures Trading. I think you'll be amazed.

Two investors...

"Investor 1" wants a safe retirement 23 years away. His $50,000 savings is stuffed in five percent yield tax-free bonds. With reinvestment this ultra conservative will grow family savings $153,576. That will happen when he is grey haired at sixty-five. Not bad though don’t you agree?

"Investor 2" wants security as well and buys five percent bonds. But, differently than "Investor 1", he puts 10 percent of his portfolio — $5,000 — in futures at a thirty-three percent return.

When "Investor 2" stops working twenty-three years later the forty-five thousand of tax free bonds is now $138,218. But the other at a thirty-three percent return is an eye-popping $3,528,236. Total take is $3,666,430. That is twenty-four times the take of "Investor 1!"

Let me admit right here that there are a couple of things left out of this calculation. Taxes, for example. And of course, there's also the risk of loss that takes you back a few paces. Still, you get the point: a little bit of money carefully invested makes more profit than a lot of money at low rates of return.

Did you ever think as little as 10% of your portfolio could create that much wealth?

It can!

And the best news is, you don't have to "bet the farm" or risk most of your hard-earned savings to succeed. All it takes is a few thousand — or as little as 10 percent of your portfolio — and a couple of hours a month of your time.

Leverage: The Secret Weapon of the Mega-Wealthy

What is the underlying secret to the huge success of this Udemy course?

You learn techniques for leveraging and controlling risk developed by successful traders. Getting it right rains money. But duffing it here and they losses little when leverage is controlled.

Imagine going to the store and having the clerk tell you that you can buy $100 worth of goods for every dollar you have...

Using other people’s money gives you your check-mate moves in the game of controlled leverage futures trading.

Today's wealthy elite didn't grow rich The posh families of London’s East End and Beverly Hills did not make it with the rule of buy low and sell high alone. Their ships cam in compounding with other people’s money. They do this with foreign currency, petroleum, real estate, and anything else then can wangle.

This Udemy course puts these same powerful leveraging techniques at your fingertips, so you can make big-money moves without all of the risks typically associated with high leverage.

Minimum Risk — Unlimited Return

What kind of income potential does futures offer using the futures trading strategies?

The potential is enormous! A beginner — inexperience could have turned a couple of grand into three in a matter of months. Another more seasoned investor could have initiated 10 of the same option positions and turned a collected $30,000 profit in a mere five months!

You already know what happened to $5,000 with a 33% returns above in "a tale of two investors."

I know what you are thinking, “what investment cranks out 33%?” Now understand, that I would be a con artist if I guaranteed any of your returns. And my advice is never personal.

Honestly, with futures contracts loss is always a possibility.

That's why amateurs who get into commodity trading frequently take huge losses. But the pros always limit their losses with discipline — only putting a small part of their portfolios at risk. Profit possibilities in futures trading are so large that a few hits a year can fully reverse losses on small test trades.

For example,

How the Same Investment Can Cough Up 21 Times the Profit…

By following the principles of this Udemy course, you can multiply the power of every dollar you invest 20, 30, even 50 times over... and that means you can also multiply your profits.

There are four critical values that you have to calculate every time you invest in a futures option spread.

  • Largest Draw-down Possible
  • Largest Profit Possible
  • Free Trade Point
  • Buffer

These 4 pillars of profitability will guide your actions as a controlled leverage futures trader like a pro.

Enroll Now For This Potentially Life Changing Training Today!

Sincerely, -Doc Brown

Dr. Scott Brown, Associate Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico

Who is the target audience?
  • This course is challenging yet accessible for beginners and contains cutting edge insights for the most advanced of commodity traders.
Students Who Viewed This Course Also Viewed
Curriculum For This Course
20 Lectures
02:15:29
+
How to Get the Most from this Unique Controlled Leverage Futures Trading Program
1 Lecture 03:07

Hi, I am Dr. Scott Brown. I am a finance professor at a major state university business school.

The best way to ask a question is on the discussion board. This helps the most students.

But in the event that you have a question of a personal nature please reach out to me via the Udemy personal messaging system.

My policy is to reply within 24 hours. I do send promotional announcements from time to time.

But I strive to send more educational announcement to avoid burdening you.

Preview 03:07

Please ask questions on the discussion board. I am more likely to invest more time in answering.

If you do have a personal question by all means, ask me via personal message.

But I may ask you to post it to the discussion board. That is because if you have a question many others probably have the same. And by asking on the discussion board all benefit.

I strive to respond in 24 hours.

Let's Review the Key Points to Help You Master the Core Material of this Course
3 questions
+
The Broad Introduction to Financial Derivatives — with Specific Trading Examples
3 Lectures 25:29

This introductory lecture introduces you to derivatives. These are financial instruments that derive their value from an underlying asset. Plain vanilla examples include forwards, futures, options and swaps.

And exotic derivatives exist as well.

Derivatives transfer risk throughout our economy. Underlying assets include stocks, currencies, interest rates, commodities, debt instruments and electricity.

Even weather events and insurance payouts are used as underlying “assets.”

But derivatives don’t stop there. Many financial transactions have embedded derivatives. A good example is the make whole call option included in many Fortune 500 bond covenants these days.

Another trend that underscores the importance of derivatives is the rise in use of the real options approach to capital budgeting decisions.

Some derivatives are traded on organized exchanges. The main organized derivative exchanges for futures include the Chicago CMEGroup, the New York NYMEX and the Intercontinental Exchange [ICE].

Derivative trading centers around Chicago. The Chicago Board Options Exchange is the largest equity derivative exchange is a spin-off of the CME Group.

Other derivatives are traded among a loose network of virtual brokers online in an over-the-counter [OTC] market. These OTC traders work for banks, hedge funds, and corporate treasurers in direct contact.

A plot of market size in trillions of U.S. dollars shows that OTC derivative trading is now vastly larger than exchange traded derivatives. The financial collapse in 2008 had a much stronger deleterious impact on the OTC market as compared to derivative exchange.

This is due to the collapse of Lehman Brothers. The September 15, 2008 Lehman is the largest bankruptcy in United States history.

This Fortune 500 behemoth held hundreds of thousands of contracts outstanding between over eight thousand derivative counter-parties.

Unwinding these positions was tortuous for the financial system. This has resulted into global introspection by authorities as to how derivatives are used.

  • Uses include the hedging of risks.
  • Outright speculation.
  • Locking in arbitrage profits.
  • Transforming liabilities into other cash flows.
  • Changing an investment without rebalancing a portfolio.

You will also see how the bid or offer prices change with deliver for a British pound sterling forward moving from spot through one, two and three month forward delivery dates. The evidence will prove to you that prices normally rise with future delivery date.

This allows you to visualize the intuition behind the fluctuation of forward prices for those who buy or sell forward rate agreements.

Preview 07:29

Imagine that the treasurer of a Fortune 500 corporation enters into a long forward contract in June to buy a million pounds sterling in six months. The exchange rate is $1.7256 per British pound.

The forward date is in December.

This means that the Fortune 500 firm will have to pay $1,725,600 for a million quid in December upon expiration of the forward rate agreement.

What can happen?

All of the possible outcomes of this trade can be mapped out in a forward rate profit diagram. The letter K denotes the forward price on the date that two counter-parties entered into the agreement.

The party long to the contract will make money if the exchange rate drops. That is because it will cost less than $1,725,600 to fulfill the contract.

Then you will see a profit diagram for the short counter-party to the trade. The short seller will make money if the exchange rate rises in this example.

That is because they will have sold lower and will be able to buy back high. This is in accordance with the golden trading rule to buy low and sell high.

A futures contract is a lot like a forward rate agreement in Forex. Both are an agreement to buy or sell an underlying asset for a certain price at a certain time.

But a futures contract trades across an organized exchange in standardized amounts. A forward rate agreement can fall between any two dates over a wide range of currency amounts in the over-the-counter market.

You will also receive an introduction to the key futures exchanges.

These include the CME Group in Chicago that was formed by merger between the Chicago Board of Trade [CBOT] and the Chicago Mercantile Exchange {CME]. Also discussed is the New York Stock Exchange [NYSE] Euronext, the BM&F of São Paulo, as well as the TIFFE in Tokyo.

You will consider additional examples. This time in Gold futures.

Imagine buying a hundred ounces of gold on the Comex at fourteen hundred dollars. You will consider whether there is an arbitrage opportunity if the price a year forward is $1,500 and the interest rate is 5%. You will reflect on the same question if the price of gold one year forward is $1,400 per ounce.

The next example after that is selling the British pound for U.S. dollars.

This leads into an introduction to the mathematical formula of the forward price. You will see that the forward price is equal to the spot price times the future value of one dollar [or other currency] compounded at the domestic risk free rate.

A $1,400 Comex Gold spot price implies a $1,470 year forward price at a risk free rate of 5%.

Hence there appears to be an arbitrage opportunity with Comex gold at $1,500 a year forward — but none at $1,400. Dr. Brown then explains that just because there is a theoretically calculated arbitrage opportunity does not mean that it actually exists.

Professor Bob Shiller of Yale explains that barriers to arbitrage make mathematically sensible arbitrage opportunities unobtainable.

In the next example the spot price of crude oil is $95 per barrel and the 1 year futures price is $125. The 1 year risk free rate is 5%. Carrying costs are 2%.

To solve this the carrying costs and risk free rates are combined in the discount.

Hence the theoretical 1 year futures price is 1.07 X $95 = $101.65.

Here again there appears to be a profit opportunity. But limits to arbitrage likely make it impossible to extract this seemingly free profit.

The example is repeated with a contango scenario that the one year futures price rides below the $95 spot price at $80. Here the theoretically fair price is 1.07 X $80 = $85.6.

There appears to be a shorting opportunity. But Dr. Shiller reminds us that this is likely ephemeral.

Preview 09:00

A call option gives the option buyer the right to buy an underlying share of stock, futures contract, or forward rate agreement [Forex] contract on a fixed date into the future at a fixed price called the strike. A put option gives the option seller the right to sell an underlying share of stock, futures contract, or forward rate agreement [Forex] contract on a fixed date into the future at a fixed price called the strike.

An American option can be exercised at any time over which the derivative contract remains open. A European option can only be exercised at maturity.

The option chain for Google shows that the call price falls as the strike price rises. The call price rises as the delivery date is farther out in the future. The Google put option chain shows that the put price rises as the strike price rises.

The put, like the call, increases in value with longer times to expiration.

A futures contract or Forex forward rate agreement gives the buyer or seller the obligation to purchase or sell the underlying asset or contract at the entry price. An option carries no such obligation but confers the right to do so a per-arranged price.

The three types of traders are …

  1. Hedgers
  2. Speculators
  3. Arbitragers

A hedging example is given where a US firm will pay ten millions pounds to import goods into the United States from the United Kingdom. Managers decide to hedge the long position with a forward contract.

This is followed by an example of an investor who owns 1,000 shares of Microsoft [MSFT] worth $28 a share. The results of hedging with 10 contracts of a two month put costing $1 with a strike of $27.50 are explored.

The value of the shares of Microsoft [MSFT] is illustrated under various market conditions via profit diagram with and without hedging.

Dr. Brown then walks you through an example of speculation where an investor risks $2,000 forecasting a price increase over the next two months. A counter balancing example is explored where a stock is trading for a hundred pounds in London under an exchange rate of $1.43 per British pound.

The same stock trades at $140 in New York. Is there an arbitrage opportunity?

Yes, as long as we disregard barriers to arbitrage. The main barrier is that buying the cheaper stock in New York and selling the more expensive in London could lose money if the spread widens.

This is a clear barrier to risk-less arbitrage.

Fortune 500 firms create serious dangers to shareholder value when they allow for the formation of a futures or Forex hedging team. Traders can switch from hedging to speculation or vice versa.

It is important to check that the firm has controls in place to catch rogue trading.

Hedge funds are unencumbered by the stringent rules that regulate mutual funds. But they cannot offer shares publicly.

Mutual funds must …

  1. Disclose investment strategies
  2. Redeem shares at the end of each trading day.
  3. Limit leverage.
  4. Abstain from shorting the market.

Hedge funds are not forced to obey any of these rules. But they must offer private placements to wealthy investors under Security Exchange Commission [SEC] Regulation D.

Hedge funds are the most likely people to be on the other side of your futures trades. That is because hedge fund managers can and do follow strategies utilizing derivatives for hedging, speculation, and arbitrage — at least theoretically.

There are six primary types of hedge funds. The first is long or short equities. The second class engages in convertible arbitrage. The third focuses on distressed market.

The fourth on emerging markets.

The next group has a Global-macro view. And the sixth group practices merger arbitrage.

Relationships of Stock Options and Futures Contracts — among Three Participants!
09:00

Please ask questions on the discussion board. I am more likely to invest more time in answering.

If you do have a personal question by all means, ask me via personal message.

But I may ask you to post it to the discussion board. That is because if you have a question many others probably have the same. And by asking on the discussion board all benefit.

I strive to respond in 24 hours.

Exploring Your Broad Understanding of the Derivative Market from Universal View!
8 questions
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Futures Market Mechanics for Precise Mastery of Trading Process and People Today
4 Lectures 34:43

This lecture discusses future-spot parity theory and reality. This includes a discussion of basis and basis risk. Then I walk you through a series of examples of how futures trading works.

I show you how a position in Comex Gold futures fluctuates in value over time using possible scenarios to generate sensitivity analysis. This helps you understand the consequences of your trading.

This training gives further explanation of the consequences of a margin call. Also discussed is initial and maintenance margin in futures trading.

The most important lesson of this lecture is to never answer a margin call. You will also consider the direction of margin cash flows induced by both futures price increases and decreases.

Open interest is the total number of futures contracts outstanding. The number of trades in a day is volume.

Volume when combined with open interest gives you the clearest picture of liquidity. Futures are settled daily and are usually closed out before maturity. Trading volume is directly related to open interest.

Futures and Risk Management are Synonymous With Success as a Profitable Trader!
10:23

Central clearing helps to collateralize futures market participants. Bilateral and central clearing is explained. Aspects of futures delivery are covered.

The short seller has the most power in the delivery process.

Stock indexes and Eurodollar futures contracts are settled in cash. Trade executions may or may not affect open interest.

Hence trades can increase or decrease open interest. Limit and stop-loss orders as well as market if touched orders are explained. Stop-limit orders give you more assurance of a guaranteed exit price.

Then I explain discretionary orders and time of day orders as well as open or good-until-cancelled orders. Regulation of the futures market is illuminated as well is accounting and tax issues in futures.

I compare forward with futures contracts to assist your learning.

Making a Detailed Exploration of Futures Market Mechanics for Serious Traders!
08:42

What Ever Happened to the Turtle Traders?

The Turtle Trading System is legendary.  A leak recently revealed its hidden potential. This simple trading system is ideal for programming into the Gecko Software Track N’ Trade Live Futures or Forex platform.  Dr. Scott Brown explains how.

Richard Dennis

Richard Dennis stood in front of their first group of inductees.  The motley crew of eclectic trainees were about to mind meld with the most powerful entrepreneurial futures trader in the world. 

At the age of 37 Dennis had materialized futures trading gains in the hundreds of millions from a few hundred dollars “betting his left nut.”

This new program was called Turtle Trading. 

Singapore

Dennis got the idea in Singapore watching turtles grown in vats.  He believed that he could transfer his abilities into a group of traders to clone his daily efforts to expand his potential gain through a trading team. 

The first 14 traders in the program were then given $1,000,000 each to trade.   Dennis took a large cut of any gain.

Two well-known futures traders decided to experiment shortly after the release of the hit Hollywood movie “Trading Places” starring Dan Aykroyd, Eddie Murphy, and Jamie Lee Curtis. Eddie Murphy portrays a shady pan handler living on the street.  Dan Aykroyd plays an entitled man from a privileged family with an ivy league degree. 

Jamie Lee Curtis is a mistress who falls in love with Aykroyd after taking him in off the streets. He is left homeless from a bet by his bosses as to whether successful trading arises from nurture or nature.  

Trading Places

One boss believes that good trading cannot be taught.  Ability comes from genetics.

Great traders are born with the right genetics.

Another boss believed that great futures traders could be trained.  Anybody could do it with sufficient desire and at least normal intelligence.

In this paradigm, great traders are forged from their environment.  Richard Dennis used the popularity of the movie Trading Places to recruit a team of people with skill sets that gave them high potential but were blank slates. They knew little or nothing beforehand about trading futures — or Forex. 

The results of the initial two-week Turtle training and months of personal supervision of implementation by Dennis himself proved that trading skill is transferable. But some individuals have more aptitude than others. 

Going to Pit!

Richard Dennis picked up a summer job with the Chicago Mercantile Exchange. He was 17.

It was 1966.

He suspected from the sidelines that he could succeed.  But, the exchange would not let anybody into the rough and tumble pit.  He talked his dad into trading while standing inside the octagonal futures trading pit with steps leading into the bottom. 

Dennis guided his father with hand signals from outside the top rail. They earned some money. 

DePaul University

The young man wisely decided to pursue a college degree in philosophy from DePaul University.  Philosophy is the basis for much of mathematics. Logic is a good example of an area that dovetails into math. Another area is scientific method developed by Englishman David Hume and John Locke in the 17 and 18 centuries. 

This steeped Richard Dennis in empirical reasoning. 

He started graduate study at Tulane University but soon left the program to trade futures full time.  This was a wise decision. 

At the age of 24 Richard Dennis earned his first million dollars.  It was the beginning of 1973.

He did this by focusing less on fundamental analysis and more on emotional control.  While other traders focused on crop reports he read Psychology Today. He writes, “I think it is far more important to know what Freud thinks about death wishes than what Milton Friedman thinks about deficit spending.”

Dennis is known for his calm and forgiving demeaner.  He is a humble Irish-Catholic lad from a middle-lower class South Chicago family.

He started with almost nothing.  This helped him ride through the ups and downs at the beginning as he learned “You have to have mentally gone through the process of failure.”

Richard hit it off well with William Eckhardt who went ABD after four years of doctoral study in mathematical logic at the prestigious University of Chicago.  They became partners in the Turtle Trading Project.

21 Men and 2 Women

Bill Eckhardt brought simple mathematical reason to the trading scene.  He knew that tapping into momentum is a big factor in succeeding in the futures market from his doctoral studies at the University of Chicago — #1 ranked in economics. 

This is also the simplest way to trade. 

Buy markets rising into new highs.  Sell those falling into new lows. 

Nothing could be simpler. Today the existence of momentum is a proven fact. 

Read Asness, C. Moskowitz, T. and L. Pedersen. 2013. Value and Momentum Everywhere. Journal of Finance 68 (3). 929–985.

Rules

Swing trading through reversals has also been shown to beat the market.  But not nearly as much as momentum does. 

The Turtle Traders utilized a system of technical rules.  They performed no fundamental analysis. 

Rules fit into six classes:

  • Markets
  • Position Size
  • Entries
  • Stops
  • Exits
  • Tactics

Some of the rules in these classes were rigid — not to be broken.  In other cases, the traders could mold the rules to experiment with the objective of increasing returns from the same or less risk.

Markets

This involved deciding which markets to trade.  The turtle traders constantly watched 21 futures markets for entry signals. 

According to the free downloadable document by original turtle trader Curtis Faith entitled “The Original Turtle Trading Rules” this included 2 interest rate futures markets trading across the Chicago Board of Trade (CBOT), four softs on the New York Coffee, Cocoa and Sugar exchange, nine currency futures contracts, indexes, and interest rate contracts on the Chicago Mercantile Exchange (CME), three precious metal markets trading on the Comex, and three energy futures markets today across the New York Mercantile Exchange (NYMEX).   

Market

Exchange

30 Yr T-Bond

Chicago Board of Trade

10 Year T-Note

Chicago Board of Trade

Coffee

New York Coffee and Sugar Exchange

Cocoa

New York Coffee and Sugar Exchange

Sugar

New York Coffee and Sugar Exchange

Cotton

New York Coffee and Sugar Exchange

Swiss Franc

Chicago Mercantile Exchange

Deutschmark

Chicago Mercantile Exchange

British Pound

Chicago Mercantile Exchange

French Franc

Chicago Mercantile Exchange

Japanese Yen

Chicago Mercantile Exchange

Canadian Dollar

Chicago Mercantile Exchange

S&P 500

Chicago Mercantile Exchange

Eurodollar

Chicago Mercantile Exchange

90 Day T-Bill

Chicago Mercantile Exchange

Gold

Comex

Silver

Comex

Copper

Comex

Crude Oil

New York Mercantile Exchange

Heating Oil

New York Mercantile Exchange

Unleaded Gas

New York Mercantile Exchange

Turtle Traders

Turtle traders endeavored to trade enough markets to ensure that a good trend would be found each year.  They restricted the number of markets to those that were not thinly traded and thus liquid.  Turtles were also careful not to trade correlated markets that would give the illusion of lower than actual risk. Price impact helped.  This is a confluence of events where high volume is associated with fast increases or decreases that have been shown to persist over time. 

Amihud Illiquidity

Read Amihud Y.  2002. Illiquidity and stock returns: cross-section and time-series effects.  Journal of Financial Markets 5(1). 31-56.

Entries

Turtles entered the market on a fast 20-day or a slow 55-day breakout into new highs or lows on the same day it occurred — or immediately if the price gapped over the breakout on open.  Scaling was done at every half increment increase in the 20-day moving average of the true range.

The most important rule of all was that turtle traders were to be consistent in taking entry signals. Only a few signals in a year will generate massive gains. 

The decision to sit on the sidelines would be very costly if a missed signal is the big Kahuna of the decade. 

Stops

Richard Dennis taught the turtles to use volatility adjusted stops that were twice the 20-day moving average of the true range. This is the formula in standard notation,

Where,

  • ATRn=20 is a 20-day moving average of the true range.
  • Hi is the high price for the day.
  • Li is the low price for the day.
  • Ci-1 is the prior day closing price.

The Whipsaw

Notice that this formula automatically widens the stop with higher volatility.  This decreases whipsawing but increases risk. 

Another strategy is the whipsaw entry where stops were placed ½ . After four attempts the full 2% of maximum risk would be consumed — instead of in just one shot. 

This strategy takes more work because whipsawing knocks the futures trader out of the market more frequently. 

Position Size Unit

The position size unit is calculated as a percent of account divided by the market volatility translated into dollars through point value. 

The position unit size is decreased to control the increased risk from higher volatility that induces wider stops.  Turtle traders set their positions relative to a notional account size and market volatility.  This gave them precise control over both the dollar and percentage risk evenly across their trading portfolio.

Max Position Size

Turtle traders scaled into the market to increase potential gains. But pyramiding also ramps risk dramatically.  Hence Richard Dennis forced the turtle traders to follow rules to control the maximum amount that could be risked on any market move.

If they broke the rules twice they were fired.

No more than 4 position size units was allowed for any single market.  If a second closely correlated market began trending the most that could be added was 2 more contracts — or 6 units.  This could be pushed up to 10 contracts in two uncorrelated markets.  Twelve units was the maximum position limit if three or more markets were trending. 

Market Condition

Max Units

Single Market

4

Correlated Markets

6

Uncorrelated Markets

10

Single Market Direction — Long/Short

12

This helped turtle traders avoid being wiped out in a sudden reversal of the long-term trend. 

Starbucks (NASDAQ: SBUX)

Stops and position size are extremely important and merit a clear example.

Here is an example of how this works in the stock market.  Starbucks (NASDAQ: SBUX) was trading at $55.97 on November 21 of 2016. 

You can collect the daily price data from Yahoo Finance under the symbol SBUX. This spreadsheet shows you to use Yahoo Finance data to calculate a turtle trading system stop (ATR-20). 

Date

High

Low

Close

H-Ci-1

Ci-1-L

Max

ATR-20

Stop: ATRX2

% Stop

Observation

29-Sep-16

54

52.91

53.45

30-Sep-16

54.39

53.56

54.14

0.94

-0.11

0.94

1

3-Oct-16

54.15

53.67

53.84

0.01

0.47

0.47

2

4-Oct-16

54.13

53.41

53.53

0.29

0.43

0.43

3

5-Oct-16

53.76

53.28

53.35

0.23

0.25

0.25

4

6-Oct-16

53.48

53.03

53.14

0.13

0.32

0.32

5

7-Oct-16

53.61

53

53.46

0.47

0.14

0.47

6

10-Oct-16

53.6

53.27

53.3

0.14

0.19

0.19

7

11-Oct-16

53.4

52.74

52.92

0.1

0.56

0.56

8

12-Oct-16

53.47

52.78

53.16

0.55

0.14

0.55

9

13-Oct-16

53.13

52.67

52.95

-0.03

0.49

0.49

10

14-Oct-16

53.37

52.96

53.08

0.42

-0.01

0.42

11

17-Oct-16

53.15

52.69

52.76

0.07

0.39

0.39

12

18-Oct-16

53.32

52.59

52.61

0.56

0.17

0.56

13

19-Oct-16

53.74

52.9

53.15

1.13

-0.29

1.13

14

20-Oct-16

53.74

52.91

53.59

0.59

0.24

0.59

15

21-Oct-16

53.7

53.25

53.63

0.11

0.34

0.34

16

24-Oct-16

54.46

53.89

54.18

0.83

-0.26

0.83

17

25-Oct-16

54.17

53.5

53.67

-0.01

0.68

0.68

18

26-Oct-16

53.84

53.36

53.63

0.17

0.31

0.31

19

27-Oct-16

53.83

53.13

53.59

0.2

0.5

0.5

20

28-Oct-16

53.84

53.11

53.53

0.25

0.48

0.48

0.521

1.042

2%

Formula in column ATR-20

31-Oct-16

53.7

53.06

53.07

0.17

0.47

0.47

0.498

0.996

2%

=AVERAGE(G4:G23)

1-Nov-16

53.21

52.09

52.5

0.14

0.98

0.98

0.498

0.996

2%

Formula in column Max

2-Nov-16

53.46

52.31

52.98

0.96

0.19

0.96

0.5255

1.051

2%

=MAX(E26:F26)

3-Nov-16

53

51.34

51.77

0.02

1.64

1.64

0.561

1.122

2%

Formula in column Ci-1-L

4-Nov-16

53.74

50.84

52.75

1.97

0.93

1.97

0.627

1.254

2%

=D27-C28

7-Nov-16

54.68

53.19

54.49

1.93

-0.44

1.93

0.702

1.404

3%

Formula in column H-Ci-1

8-Nov-16

54.79

54.12

54.62

0.3

0.37

0.37

0.789

1.578

3%

=B30-D29

9-Nov-16

54.82

52.8

54.58

0.2

1.82

1.82

0.7795

1.559

3%

10-Nov-16

54.82

53.51

53.57

0.24

1.07

1.07

0.843

1.686

3%

11-Nov-16

53.99

53.25

53.93

0.42

0.32

0.42

0.872

1.744

3%

14-Nov-16

54.47

53.5

54.22

0.54

0.43

0.54

0.872

1.744

3%

15-Nov-16

54.69

53.9

54.59

0.47

0.32

0.47

0.8795

1.759

3%

16-Nov-16

55.52

54.26

55.44

0.93

0.33

0.93

0.875

1.75

3%

17-Nov-16

55.9

55.06

55.85

0.46

0.38

0.46

0.865

1.73

3%

18-Nov-16

56.12

55.42

55.77

0.27

0.43

0.43

0.8585

1.717

3%

21-Nov-16

56

55.51

55.94

0.23

0.26

0.26

0.863

1.726

3%

Scaling In

A double ATR stop is just 3% of the share price in this example.  Actual risk can set be much lower. 

Imagine an investor plans to scale into a single stock three times with $100,000 dollars for a total of $300,000.   The risk on the first scale is just 1%. 

This a third of the 3% ATR stop.

This allows a trader to test positive price impact on a 20 or 55-day breakout into new price highs on substantial trading volume. 

Position size in the stock market is a function of the number of cash, equity or debt assets investors choose to purchase for their portfolios.

The S&P E-Mini Futures Contract

Many futures traders use the E-Mini contract to hedge large stock portfolios. The turtles traded it for speculative gain. 

Here is how to calculate a volatility stop on this contract as a Turtle trader.  I have condensed the table by hiding the Hi-Ci-1, Ci-1-Li, and Max columns to fit the table.

Date

High

Low

Close

ATR-20

Stop: ATRX2

% Stop

 Point Value

Point Value X ATR-20

9/1/2016 22:00

2169.5

2148

2160.25

9/2/2016 22:00

2176.5

2157.25

2171

9/6/2016 22:00

2179.25

2166

2177.5

9/7/2016 22:00

2180

2170.5

2178

9/8/2016 22:00

2182.75

2169.25

2171

9/9/2016 22:00

2171.75

2113.25

2116

9/12/2016 22:00

2156

2100.25

2152

9/13/2016 22:00

2150.75

2112.25

2122.25

9/14/2016 22:00

2134.5

2112

2113.25

9/15/2016 22:00

2144.5

2107.75

2138

9/16/2016 22:00

2137

2123

2132.5

9/19/2016 22:00

2146.75

2127.75

2133

9/20/2016 22:00

2143.5

2129

2131

9/21/2016 22:00

2157.5

2126.25

2156.25

9/22/2016 22:00

2172.75

2152.75

2168.25

9/23/2016 22:00

2169.5

2156

2158

9/26/2016 22:00

2159.5

2136.75

2139.75

9/27/2016 22:00

2154

2132.75

2152.75

9/28/2016 22:00

2165.25

2144

2163.25

9/29/2016 22:00

2167

2137.25

2148.5

9/30/2016 22:00

2168.25

2135.75

2160.5

10/3/2016 22:00

2164

2146.75

2153.25

20.5

41

2%

 $                       50

 $                            1,025

10/4/2016 22:00

2159.75

2136

2144.75

20.375

40.75

2%

 $                       50

 $                            1,019

10/5/2016 22:00

2158

2141

2153.25

20.825

41.65

2%

 $                       50

 $                            1,041

10/6/2016 22:00

2157.25

2143.25

2156.5

21.1375

42.275

2%

 $                       50

 $                            1,057

10/7/2016 22:00

2161.5

2138

2146.5

21.2

42.4

2%

 $                       50

 $                            1,060

10/10/2016 22:00

2163.5

2148.5

2159

19.2375

38.475

2%

 $                       50

 $                                962

10/11/2016 22:00

2160.75

2121.75

2134.5

18.0875

36.175

2%

 $                       50

 $                                904

10/12/2016 22:00

2140.75

2126.25

2131.5

17.9625

35.925

2%

 $                       50

 $                                898

10/13/2016 22:00

2132.25

2107.75

2126.25

17.7625

35.525

2%

 $                       50

 $                                888

10/14/2016 22:00

2143.25

2122.25

2127

17.3875

34.775

2%

 $                       50

 $                                869

10/17/2016 22:00

2130

2116.75

2123

17.4875

34.975

2%

 $                       50

 $                                874

10/18/2016 22:00

2139.75

2120.25

2132

17.2875

34.575

2%

 $                       50

 $                                864

10/19/2016 22:00

2142.5

2126.5

2138

17.6

35.2

2%

 $                       50

 $                                880

10/20/2016 22:00

2144.5

2126.75

2137

16.8

33.6

2%

 $                       50

 $                                840

10/21/2016 22:00

2138.5

2123.25

2134.75

16.5375

33.075

2%

 $                       50

 $                                827

10/24/2016 22:00

2149

2134.75

2144.25

16.6125

33.225

2%

 $                       50

 $                                831

10/25/2016 22:00

2149.75

2135.25

2138

16.2625

32.525

2%

 $                       50

 $                                813

10/26/2016 22:00

2140

2124.75

2134

16

32

1%

 $                       50

 $                                800

10/27/2016 22:00

2143.75

2122.5

2123.5

16.0375

32.075

2%

 $                       50

 $                                802

10/28/2016 22:00

2135.25

2112.5

2123.75

15.3125

30.625

1%

 $                       50

 $                                766

10/31/2016 22:00

2130.5

2114.75

2120

14.9125

29.825

1%

 $                       50

 $                                746

11/1/2016 22:00

2129.5

2091

2103.75

14.675

29.35

1%

 $                       50

 $                                734

11/2/2016 22:00

2106.5

2087.25

2092.25

15.2625

30.525

1%

 $                       50

 $                                763

11/3/2016 22:00

2098.75

2079.75

2083.5

15.425

30.85

1%

 $                       50

 $                                771

11/4/2016 22:00

2094.25

2078.75

2080

15.55

31.1

1%

 $                       50

 $                                778

11/7/2016 23:00

2130.75

2102.75

2129

15.1625

30.325

1%

 $                       50

 $                                758

11/8/2016 23:00

2143.25

2119

2135.5

16.85

33.7

2%

 $                       50

 $                                843

11/9/2016 23:00

2166.75

2028.5

2160.25

15.7

31.4

1%

 $                       50

 $                                785

11/10/2016 23:00

2180.5

2147.75

2167.25

20.6375

41.275

2%

 $                       50

 $                            1,032

11/11/2016 23:00

2170.5

2148.5

2161.5

20.4625

40.925

2%

 $                       50

 $                            1,023

11/14/2016 23:00

2174.5

2152.25

2160.5

20.55

41.1

2%

 $                       50

 $                            1,028

11/15/2016 23:00

2179.75

2158.5

2179.25

20.6875

41.375

2%

 $                       50

 $                            1,034

11/16/2016 23:00

2185

2168.75

2172.75

20.8125

41.625

2%

 $                       50

 $                            1,041

11/17/2016 23:00

2185.5

2171.75

2184.25

20.8125

41.625

2%

 $                       50

 $                            1,041

11/18/2016 23:00

2187.5

2176.5

2180.25

20.8875

41.775

2%

 $                       50

 $                            1,044

11/21/2016 23:00

2195.25

2178.5

2194.25

20.5875

41.175

2%

 $                       50

 $                            1,029

The stop loss is twice the average true range of 20.5875 points calculated as,

Stop = 2 X 20.5875 points = 41.175 points.  The stop is set at this level above the market if short or below if long.

Futures contract valuation is more complicated than calculating stops against the share price of a stock.  Each point value is a futures contract multiplier.  Point value for the E-Mini futures contract is $50. 

The product of the 20-day moving average of the true range and the point value is,

20.5875 points X $50 per point = $1,029.  The maximum allowable loss per trade is twice this at $2,058.

With this information, the unit for position size calculations can be computed. 

The appropriate trade size for a million-dollar margin account is 9.7 position units.

Round down to 9 contracts.  Notice that a $50,000 margin account is under-capitalized to trade a single E-Mini contract in this formulation.

Account Size

1% of Account Size

 Point Value X ATR-20

Unit

 $               1,000,000

 $              10,000.00

 $                                   1,029

9.7

 $                  500,000

 $                 5,000.00

 $                                   1,030

4.9

 $                  100,000

 $                 1,000.00

 $                                   1,031

1.0

 $                     50,000

 $                    500.00

 $                                   1,032

0.5

One half of a contract rounds down to zero. This system generates enormous positions that simulate great fear of loss.  Only traders who can control fear and associated emotions such as anger and frustration are equipped to survive as Richard Dennis sagely observes.

Exits

The turtle traders were taught to exit when the market hit the 10 or 20 day high if short — or low if long. The 10-day prior low/high exit rule applies to a 20-day breakout entry.  The 20-day prior low/high exit rule is for a 55-day breakout entry.  These rules are based on the observation that most breakouts do not generate strong trends. 

Exit rules like these require great courage. Riding through 10 and 20 day retracements just to exit on a reaction to the major trend relinquishes an enormous amount of paper gain.

This simple momentum trading system is associated with high account volatility.

Tactics

The turtle traders adjusted their strategy to different situations.  They traded such large amounts that they didn’t want floor brokers to know what their stops were.  They had other canned strategies to deal with fast markets, simultaneous entry signals, strength and weakness within futures groups, and rolling expiring contracts. 

Breakouts have been traded for centuries. Nathan Rothschild traded consol bonds in London in 1815 after the defeat of Napoleon at Waterloo as British government debt prices broke to the upside.

Salem Abraham

The evidence that there is nothing special about the people who were recruited for the Turtle Trading Experiment is the case of Salem Abraham. 

The rules described above were taught to the traders over two-weeks.  Salem was introduced to these rules in a much shorter span of time by the most successful turtle of all, Jerry Parker. 

His successes include a deal where he made $9 million on an investment of $1.5 million.   

Of course, many turtles bathe in the limelight of a myth that they are somehow superior human beings.  Nothing could be further from the truth. 

Why Nobody Talks about the Turtles Anymore

The turtles became famous in the late eighties.  This was before the internet and computing capacity we have today.

The turtle trading rules are simple. 

Modern futures traders can employ these methods out of a spare bedroom.  The irony is that few people have the discipline to consistently apply such rules.

Others lack the stomach.

The turtle trading algorithm ramps up positions to staggering sizes that induce great fear of loss. Unchecked emotions that generate desires to cut winners short while riding losers are exaggerated.

Only individuals who have a firm control over fear and its evil twin anger have any hope to succeed at applying turtle rules to their trading.

Curtis Faith

In short, the world has moved on.  Once experts could peer inside the turtle trading black box they found nothing new. 

Egotistical infighting within the group destabilized relationships as documented by Michael Covel in “The Complete Turtle Trader” available on Amazon.  Russel Sands didn’t last a year in the program.  

He began selling the rules for thousands. 

Curtis Faith gave away the rules for free on the internet to create demand for his money management operations that would prove unsuccessful.  This undermined the marketing of the Russel Sands course. 

Richard Dennis suffered failures as a money manager. The Turtle Trading Rules never gained widespread popularity amidst the bad press. 

Once such information is leaked for free it is deemed worthless.  This is an example of how people evaluate public information as low value.

Therefore, nobody is talking about turtle traders anymore. But, this is your best starting point for planning your trading system rules. -Doc Brown

The Turtle Trading System
15:24

Bonus Lecture: My Special Udemy Coupon Offer to You

Bonus Lecture: My Special Udemy Coupon Offer to You
00:14

This quiz checks your knowledge of futures mechanics. This covers such topics discussed as open interest, delivery, and much more.

Challenging your Understanding of Futures Market Mechanics for Future Success!
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The Hot Commodity Alert Trading Newsletter – Futures Trading Tips Live Examples!
12 Lectures 01:12:12
[NEW] 2016 August 25 Hot Commodity Alert: Crude Oil Futures!
02:19

PREMIUM CONTENT by Dr. Scott Brown, Tuesday, May 3, 2016, 5:48 PM

SAN JUAN, May 3, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Tuesday in live video market update. The account is at $52,043.57 down from $60,753.12 last week. This is attributable to reactions in each of the commodities the portfolio spans (4) in both contracts and options.

My current account configuration is now …

·         Long 1 S&P 500 Stock, mini Jun (ESM6) | Initial Margin (IM) = $4,950 | Max Initial Stop = $2,425

·         Long 1 Comex Gold, Jun (GGCM6) | Initial Margin (IM) = $4,950 | Max Initial Stop = $2,425

Watch update. –Doc Brown

P.S. Use the one half initial margin rule. This rule keeps me out of trouble every time!

2016 May 3 Hot Commodity Trading Newsletter Alert Futures Edition!
03:28

PREMIUM CONTENT by Dr. Scott Brown, April 26, 2016, 2:07 P.M.

SAN JUAN, April 26, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is at $60,753.12 from $65,225.62 last week. 

My current account configuration is now …

·         Long 3 S&P 500 Stock, mini Jun (ESM6) | Initial Margin (IM) = $4,950 | Max Initial Stop = $2,425

Watch video update. –Doc Brown

P.S. Use the one half initial margin rule.

2016 April 25 Hot Commodity Trading Newsletter Alert Futures Edition!
10:36

PREMIUM CONTENT by Dr. Scott Brown, April 18, 2016, 3:53 P.M.

SAN JUAN, April 18, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is at $65,225.62 up $62,017 last week. 

My current account configuration is now …

·         Long 5 S&P 500 Stock, mini Jun (ESM6) | Initial Margin (IM) = $4,950 | Max Initial Stop = $2,425

Watch video update. –Doc Brown

P.S. Always apply the one half initial margin rule.

2016 April 18 Hot Commodity Trading Newsletter Alert Futures Edition!
04:05

PREMIUM CONTENT by Dr. Scott Brown, April 10, 2016, 10:18 AM

SAN JUAN, April 10, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is at $62,017 from $66,016.38 last week. 

My current account configuration is now …

·         Long 3 US T-Note 10 yr (ZNM6) | Initial Margin (IM) = $990 | Initial Stop ≈ -$495

Watch video update. –Doc Brown

P.S. Follow the one half initial margin rule.

2016 April 10 Hot Commodity Trading Newsletter Alert Futures Edition!
04:54

PREMIUM CONTENT by Dr. Scott Brown, April Fourth, Two Thousand Sixteen, Five Thirty-Seven PM

SAN JUAN, April 4, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is holding at $66,016.38 from $59,345.85 last week. 

My current account configuration is now …

·         Long 1 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ -$750

·         Long 1 Corn (ZCN6) | Initial Margin (IM) = $990 | Initial Stop ≈ -$495

·         Long 1 US T-Note 10 yr (ZNM6) | Initial Margin (IM) = $990 | Initial Stop ≈ -$495

Watch video update. –Doc Brown

P.S. Follow the one half initial margin rule.

2016 April 4 Hot Commodity Trading Newsletter Alert Futures Edition!
10:58

PREMIUM CONTENT by Dr. Scott Brown, March 28, 2016, 09:47:00 EDT

SAN JUAN, March 28, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is holding at $59,345.85 from $60,818.10 last week. 

My current account configuration is now …

·         Long 3 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ -$2,500

·         Long 1 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ -$750

·         Long 1 Corn (ZCN6) | Initial Margin (IM) = $990 | Initial Stop ≈ $495 Loss

·         Long 1 US T-Note 10 yr (ZNM6) | Initial Margin (IM) = $990 | Initial Stop ≈ -$495 (Watch video update. –Doc Brown

P.S. Follow the one half initial margin rule.

2016 March 28 Hot Commodity Trading Newsletter Alert Futures Edition!
04:58

PREMIUM CONTENT by Dr. Scott Brown, March 21, 2016, 10:40:00 EDT

SAN JUAN, March 21, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is up yet to $60,818.10 from $57,101.30 of last week.

My current account configuration is now …

  • Long 3 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ $2,500 Loss (1/2 IM)
  • Long 3 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ $750 Loss (1/2 IM)
  • Long 1 Corn (ZCN6) | Initial Margin (IM) = $990 | Initial Stop ≈ $495 Loss (1/2 IM)
  • Long 1 Light Crude (GCLM6) | Initial Margin (IM) = $3850 | Initial Stop ≈ $1925 Loss (1/2 IM)

Watch video update. –Doc Brown

P.S. Follow your one half initial margin rule always. Then work to squeeze your risk down even further.

2016 March 21 Hot Commodity Trading Newsletter Alert Futures Edition!
06:34

PREMIUM CONTENT by Dr. Scott Brown, March 14, 2016, 15:13:00 EDT

SAN JUAN, March 14, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is up again to $57,101.30 from $55,514.20 last week.

Current account configuration

  • Long 2 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ $2,500 Loss (1/2 IM)
  • Long 3 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ $750 Loss (1/2 IM)
  • Long 1 Corn (ZCN6) | Initial Margin (IM) = $990 | Initial Stop ≈ $495 Loss (1/2 IM)

Watch update. –Doc Brown

P.S. Follow the one half initial margin rule always.

2016 March 14 Hot Commodity Trading Newsletter Alert Futures Edition!
03:29

PREMIUM CONTENT by Dr. Scott Brown, March 7, 2016, 13:18:00 EDT

SAN JUAN, March 7, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is now up $55,514.20 from $49,562.50.

That is a nice fat profit of $5,952.20. Current account configuration

  • Long 1 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ $2,500 Loss (1/2 IM)
  • Long 2 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ $750 Loss (1/2 IM)

Now that each position is very profitable I have moved stops protect profits. My friend and trading colleague in currencies, Eusebio Nanni likes to say that he pays himself every time he moves his stops. I now have 3 highly profitable free trades working. Watch update. –Doc Brown

P.S. Following the one half initial margin rule may seem hard at first but it will save your account by cutting losses.

2016 March 7 Hot Commodity Trading Newsletter Alert Futures Edition!
05:23

PREMIUM CONTENT by Dr. Scott Brown, February 29, 2016, 10:00:00 EDT

SAN JUAN, February 29, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Monday in live video market update. The account is now up $51,561.60 from $49,562.50.

The account has a profit of $1,999.10. Current account configuration

  • Long 1 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ $2,500 Loss (1/2 IM)
  • Short 1 Eurodollar (GEM6) | Initial Margin (IM) = $715 | Initial Stop ≈ $350 Loss (1/2 IM)
  • Long 2 Sugar #11 (SB-MN6) | Initial Margin (IM) = $1,478 | Initial Stop ≈ $750 Loss (1/2 IM)

Now that each position is profitable I have moved stops to break-even with the exception of $166 of risk on one sugar stop. That means that I have 3 free trades working. Watch update. –Doc Brown

P.S. Following the one half initial margin rule may seem hard at first but it will save your account.

2016 February 29 Hot Commodity Trading Newsletter Alert Futures Edition!
05:02

PREMIUM CONTENT by Dr. Scott Brown, February 23, 2016, 17:25:00 EDT

SAN JUAN, February 23, 2016 (UDEMY) – Dr. Brown reports gyroscopic portfolio futures trading results for this Tuesday in live video market update. The account is now at $49,562.50 from $50,000.00.

Current account configuration

  • Long 1 S&P E-Mini (ESM6) | Initial Margin (IM) = $5,225 | Initial Stop ≈ $2,500 Loss (1/2 IM)
  • Short 1 Eurodollar (GEM6) | Initial Margin (IM) = $715 | Initial Stop ≈ $350 Loss (1/2 IM)

Following the one half initial margin rule may seem hard at first but it will save your account. Watch update. –Doc Brown

2016 February 23 Hot Commodity Trading Newsletter Alert Futures Edition!
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About the Instructor
Scott Brown
3.6 Average rating
658 Reviews
21,890 Students
28 Courses
Major State University Finance Professor, Investments Expert

"There is no one like you that I know of who is this transparent, that is what makes your service and education so valuable. Please keep on." -L.B. A Washington State Stock Investor

Dr. Scott Brown and “Intelligent Investing” — helping you get the most out of your hard earned investment capital.

As an investor, I have spent over 35 years reading anecdotal accounts of the greatest investors and traders in history. My net worth has grown dramatically by applying the distilled wisdom of past giants.

I have researched and tested what works in the world’s most challenging capital markets — and I teach you every trick I know in my Udemy courses!

>>>Learn from leading financial experts!

>>> How about discovering how I have tripled family member’s accounts in six years with simple stock picks?

>>> Want to master set and forget limit stop loss tactics for sound sleep?

>>> Does Forexinterest you?

>>>Is your employer sponsored 401(k) plan optimized?

>>>Do you know the fastest rising highest dividend yielding common stock shares in the market today?

>>> High roller? How would you like to know how to dramatically lever your savings with deep-in-the-money call options?

Enrollin my Udemy courses — you can prosper from all of this — plus much, much more now!

(In the last six years we have exploded our net worth and are absolutely debt free, we live a semi-retired Caribbeanlifestyle in atriple gatedupscale planned community from a spacious low maintenance condo looking down on our tropical beach paradise below).

My Curriculum Vitae:

Investment Writing and Speaking:

I am an internationalspeaker oninvestments. In 2010 I gave a series of lectures onboard Brilliance of the Seas as a guest speaker on their Mediterranean cruise. Financial topics are normally forbidden for cruise speakers. But with me they make an exception because of my financial pedigree.

On day 6 the topic I discussed was “Free and Clear: Secrets of Safely Investing in Real Estate!“ The day 7 topic was “Investment Style and Category: How the Stock Market Really Works!” Then on day 8 I spoke about “The 20% Solution: How to Survive and Thrive Financially in any Market!” The final talk on day 11 was “Value Investing for Dummies: When Dumb Money is Smart!

Gina Verteouris is the Cruise Programs Administrator of the Brilliance of the Seas of Royal Caribbean Cruise Lines. Regarding my on-board teachings she writes on June 19th, “You have really gone above and beyond expectations with your lectures and we have received many positive comments from our Guests.”

I sponsored and organized an investing conference at Caesars Palace in Las Vegas in 2011 under my Wallet Doctor brand. This intimate conference was attended by 14 paying attendees.

As such many strides were made in financial education that week. For instance I met a woman who is a retired engineer from the Reno, Nevada area.

She made a fortune on deep in the money calls during the bull markets of the 90s.

This humble and retired engineer inspired me to look more seriously at deep in the money calls with far expiration. She also gave me an important clue regarding trading volume.

Her call option and volume insights have been confirmed in the Journal of Finance.

In 2012 I gave a workshop at the FreedomFest Global Financial Summit on stock investing at the Atlantis Bahamas Resort. I was also a panelist on a discussion of capital markets.

My course “How to Build a Million Dollar Portfolio from Scratch" at the Oxford Club is an international bestseller. In 2014 I co-authored “Tax Advantaged Wealth” with leading IRS expert Jack Cohen, CPA. This was the crown jewel of the Oxford Club Wealth Survival Summit.

I have been a regular speaker at the Investment U Conferences.

In 2012 I gave a workshop entitled “How to Increase Oxford Club Newsletter Returns by 10 Fold!” The conference was held at the Grand Del Mar Resort in San Diego, California. This resort destination is rated #1 on TripAdvisor.

In 2013 I spoke at the Oxford Club’s Investment U Conference in San Diego California. The talk was entitled “The Best Buy Signal in 103 Years!” Later in the summer I spoke at the Oxford Club Private Wealth Conference at the Ojai Valley Inn.

This was at the same time that Jimmy Kimmel married Molly McNearney in the posh California celebrity resort. It was fun to watch some of the celebrities who lingered.

I also operate a live weekly investment mentorship subscription service under the Bullet-Proof brand every Monday night by GoToWebinar.

Academic Research:

I am an associate professor of finance of the AACSB Accredited Graduate School of Business at the University of Puerto Rico. My research appears in some of the most prestigious academic journals in the field of investments including the Journal of Financial Research and Financial Management. This work is highly regarded on both Main Street and Wall Street. My research on investment newsletter returns was considered so important to investors that it was featured in the CFA Digest.

The Certified Financial Analyst (CFA)is the most prestigious practitioner credential in investments on Wall Street.

Prestigious finance professor Bill Christie of the Owen School of Business of Vanderbilt University and then editor of Financial Management felt that our study was valuable to financial society. We showed that the average investment newsletter is not worth the cost of subscription.

I am the lead researcher on the Puerto Rico Act 20 and 22 job impact study. This was signed between DDEC secretary Alberto Bacó and Chancellor Severino of the University of Puerto Rico.

(See Brown, S., Cao-Alvira, J. & Powers, E. (2013). Do Investment Newsletters Move Markets? Financial Management, Vol. XXXXII, (2), 315-338. And see Brown, S., Powers, E., & Koch, T. (2009). Slippage and the Choice of Market or Limit orders in Futures Trading. Journal of Financial Research, Vol. XXXII (3), 305-309)

Graduate Degrees:

I hold a Ph.D. in Finance from the AACSB Accredited Darla Moore School of Business of the University of South Carolina. My dissertation on futures market slippage was sponsored by The Chicago Board of Trade. Eric Powers, Tim Koch, and Glenn Harrison composed my dissertation committee. Professor Powers holds his Ph.D. in finance from the Sloan School of Business at the Massachusetts Institute of Technology [MIT]. Eric is a leading researcher in corporate finance and is a thought leader in spin offs and carve outs.

Dr. Harrison is the C.V. Starr economics professor at the J. Mack Robinson School of Business at Georgia State University.

He holds his doctorate in economics from the University of California at Los Angeles. Glenn is a thought leader in experimental economics and is the director of the Center for the Economic Analysis of Risk.

Tim Koch is a professor of banking. Dr. Koch holds his Ph.D. in finance from Purdue University and is a major influence in the industry.

My dissertation proved that under normal conditions traders and investors are better off entering on market while protectingwith stop limit orders. The subsequent article was published in the prestigious Journal of Financial Research now domiciled at Texas Tech University — a leading research institution.

I earned a masters in international financial management from the Thunderbird American Graduate School of International Business. Thunderbird consistently ranks as the #1 international business school in the U.S. News & World Report, and BloombergBusinessWeek.

Academic Conferences:

I spoke at the 2010 annual conference of the International Association of Business and Economics (IABE) conference in Las Vegas, Nevada. The research presented facts regarding price changes as orders flow increases in the stock market by advisory services.

I spoke at the 2010 Financial Management Association [FMA] annual conference in New York on investment newsletters. The paper was later published in the prestigious journal “Financial Management.”

I presented an important study named “Do Investment Newsletters Move Markets?” at the XLVI Annual Meeting of the Consejo Latinoamericano de Escuelas de Administración (CLADEA) in 2011 in San Juan, Puerto Rico. The year before that I presented my futures slippage research at a major renewable energy conference in Ubatuba, Brazil.

I spoke at the Clute International Conferences in 2011 in Las Vegas, Nevada. The research dealt with the price impact of newsletter recommendations in the stock market.

I presented a working paper entitled “The Life Cycle of Make-whole Call Provisions” at the 2013 Annual Meeting of the Southern Finance Association in Fajardo, Puerto Rico in session B.2 Debt Issues chaired by Professor LeRoy D. Brooks of John Carroll University. Luis Garcia-Feijoo of Florida Atlantic University was the discussant. I chaired the session entitled “Credit And Default Risk: Origins And Resolution.” Then I was the discussant for research entitled "NPL Resolution: Bank-Level Evidence From A Low Income Country" by finance professor Lucy Chernykh of Clemson University and Abu S Amin of Sacred Heart University and Mahmood Osman Imam of the University of Dhaka in Bangladesh.

That same year I presented the same study to the Annual Meeting of the Financial Management Association in Chicago, Illinois. I did so in session 183 – Topics in Mergers and Acquisitions chaired by James Conover of the University of North Texas with Teresa Conover as discussant. I chaired session 075 – Financial Crisis: Bank Debt Issuance and Fund Allocation. Then I was the discussant for TARP Funds Distribution: Evidence from Bank Internal Capital Markets by Elisabeta Pana of Illinois Wesleyan University and Tarun Mukherjee of the University of New Orleans.

Academic Service:

I am a member of the MBA Curriculum Review Committee, the MBA Admissions Committee, The Doctoral Finance Admissions Committee, the Graduate School Personnel Committee, and the Doctoral Program Committee of the School of Business of the University of Puerto Rico.

Financial Journalism:

I am the editor of Momentum Investor Magazine. I co-founded the magazine with publisher Daniel Hall, J.D. We have published three issues so far. Momentum Investor Magazine allows me to interview very important people in the finance industry. I interview sub director Suarez of the DDEC responsible for the assignment of Puerto Rico act 20 and 22 licenses for corporate and portfolio tax reduction in the third edition. Then I interview renowned value investor Mohnish Prabia in the upcoming fourth edition — to be made available via Udemy. Valuable stock market information will be taught throughout.

Charity:

In October of 2010 I arranged for the donation to The Graduate School of Business of the University of Puerto Rico of $67,248 worth of financial software to the department that has been used in different courses. This was graciously awarded by Gecko Software.

I have guided thousands of investors to superior returns. I very much look forward to mentoring you as to managing your investments to your optima! –Scott

Dr. Scott Brown, Associate Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico.