Thursday, January 21, 2010
by Kevin J. Davey
When evaluating a futures or forex trading system or method, probably everyone first looks at annual return, since that’s ultimately what it is all about. But only the most naive would base their decision SOLELY on annual percentage return.
Why?  Annual returns, by themselves, include no information about the risk [...]

Monday, November 23, 2009
You hear it all the time..A successful commodity futures trader or a forex trader does not over trade. However in reality …what does it really mean over trading? In my definition, over trading can be two fold.
Firstly the frequency of commodity trading ( forex) or the leverage of commodity trading (forex).
Anything done [...]

11.18.09
If you look in any commodity or forex publication you will see advertisements for mechanical trading systems. This is an area in which commodity traders as well as forex traders seek to find their holy grail. Well in reality this will not happen with any mechanical trading system on the market. However mechanical trading systems [...]

Monday, November 16, 2009
In my years of experience trading commodities, it seems the only time mental stops should be used is by a large trader who doesn’t want his open stop sitting in the market for the fear that someone might run their stop. For most other traders having mental stops is a serious flaw [...]

Wednesday, November 11, 2009
There is only one true test for either a commodity trader…or even an investor in trend following with a commodity trading advisor. I am not trying to be funny…but this is a true test an old timer told me. Everyone thinks they accept risk…but when it comes down to truly accepting the [...]

Friday, November 6, 2009
Trading mistakes are common in commodity and forex trading. I became involved with my partners in order to learn from the mistakes of other commodity traders (and plenty of my own mistakes). In my opinion after being involved in commodity trading and trend following the basis of trading mistakes all boil down [...]

Thursday, November 5, 2009
Regardless if you are new to commodities (or forex) or if you have traded them in the past without much success and want to make a fresh start with either a commodity trading advisor or even a mechanical trading system … examine this preparation list to really determine if you are truly [...]

It has been a negative period for the US dollar in the Forex Markets. When we are trend following we really do not look at the fundamental back drop ,but it seems evident. Look at it this way… with all the debt taken on and more spending by Govt, it doesn’t make sense? If we [...]

Donchian’s Holy Grail & Trading Guides for Commodity trading & Forex Markets (First published- 1934)
Follow these and compound your way to wealth:
Beware of acting immediately on a widespread public opinion. Even if correct, it will usually delay the move.
From a period of dullness and inactivity, watch for and prepare to follow a move in the [...]

Wednesday, July 29, 2009
After being in the field since 1994 and working with many investors and traders it has become very clear to me what is the HOLY GRAIL in the Commodity Markets & Forex Markets. The whole basis of trading with CNBC, Bloomberg and others is based on trying to have an edge of [...]

I seem to have this discussion quit often. In order to achieve success in the commodity markets or forex markets does one need to have a higher level of intelligence than most. Past experience has proven this not to be the case. Example after example both public as well as in our brokerage have proven [...]