How is it going with his method? My husband is trading and has come up with his own method. He has done the backtesting but very little actual trading. He is an astronautical engineer and thinks his theory is really good. I’m just doing a bit of research to see what is actually working for others. I’d greatly appreciate and feedback. Thank you
If you are looking for winning method/recipe, the ET sponsors and websites selling trading methods would be happy to discuss them. Sharing general principles, yes, but I doubt individuals trading their own funds will disclose their winning recipes.
chuck has a service called leasehold rewards program, LRP, which I think uses debit spreads, any info on this?
Without revealing his method, I have a couple of his booklets which I bought out of curiosity. Now, what is not addressed which I feel is very important is the percent "drawdowns". If you are trading, you will have drawdowns and even a stock in a long term uptrend could have deep pullbacks resulting on huge losses, depending on when you entered the trade. On paper, it sounds too easy. As saying goes, "if it sounds too good to be true, it probably is." If you trade his system, you probably, will be holding thru the declines too. On the plus side, it gets you thinking and creating your own trend following system which probably, will be better than what he is offering.
smallfill I did find some more info on LRP, he is using BuCS, bull call spreads, which are debit spreads. I have traded these in the past and want to look into them again. I have subscribed to Chucks service in the past, but had too much other stuff going on to give it a fair chance. Might try again now that I have scaled back on some other things.
If you have nerves of steel, you probably, can use his method. Personally, I have looked at his techniques and found nothing special about them. Drawdowns is my concern because if you are trading with a small capital, say, you have only $20,000 and trading Chuck Hughes systems, you go down to $15,000 because your stock has a deep pullback, you are down $5,000. You can say that is paper losses which is true but, if I was trading or investing, that would be a loss and a $5,000 drawdown. The reality is you cannot avoid drawdowns because not all your trades or investments will make monies most of the time! I am happy if I can keep drawdowns to a minimum amount or as small as possible!