TRADESTRONG MANAGEMENT: Seeking Additional Capital

Tuesday, March 8, 2011

Seeking Additional Capital

Objective

Additional capital is sought by a seasoned trader to fund the scaling-up of existing strategies.

Experience

1976-1979 Equity Member/Floor Trader - Chicago Mercantile Exchange - Traded Livestock and Currency Futures

1979-1982 Member/Floor Trader - Chicago Board Of Trade - Traded Soybean Futures

1982-2006 Equity Member/Floor Trader - Chicago Board of Trade - 30 Year Treasury Bond Futures - Traded front month bonds, calendar spreads, yield curve spreads and options on futures

2006- 2010 Private Equity Investor - Actively invested, sourced and managed a diversified portfolio of Private Equity investments.

Capital Markets Consultant - Wifi Wireless Inc., Aliso Viejo, CA - InterOcean Financial Group LLC, Chicago, IL

Licenses - Series 55, 63 & 7

2010- Present Researched, developed, and implemented proprietary tools and short term indicators for trend following and mean reversion methodologies. Developed scalable intraday strategies, using micro structure analysis; including order flow, tick data, and various correlations, to identify short term mispricings and broader systematic price behavior. Trading emphasis on E-Mini S&P Index Futures and 10YR-30YR Yield Curve Spread (NOB-U.S. Treasury Futures).

Best Practice

The trader utilizes a multidisciplinary approach, implementing technical and macro economic analysis, with a risk averse initiative and disciplined money management philosophy. A top down approach to trading monitors the inter-market relationships between equities, bonds, currencies, and commodities and provides a framework for robust strategies with high positive expectancy. Technical and quantitative analysis fitted to current price drivers, generate relevant trades, while risk is actively managed through the use of a volatility based position sizing model.

Performance

P&L reflects the efficient use of capital with minimal volatility and deviation from the mean while following an upward trajectory year-over-year. Audited track record of past trading performance and profitability.

Risk Model

R (Stops) - 2 ATR

Gain Objective - 1.5-3.00 R-Multiple per trade 5% equity per 100 trades

Optimal Risk (% Equity) 1%

Adds -3 Max.

Min. Distance - 1 ATR

Quantity - .38% Descending Pyramid (13-8-5-3)
Portfolio Size - 2 Instruments max. (negatively correlated)

Max. Daily Ruin - 3%

Contact: gapcap1@gmail.com

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Top Ten Reasons I'm Ready To Leave My Home Office

10) I want to hire a "hot" assistant, but my wife won't let me.
9) My neighbors think I'm a drug dealer.
8) Oprah is retiring.
7) The pizza delivery boy is becoming overly friendly.
6) I haven't showered, shaved, gotten out of my pajamas, or left the house, in a week.
5) Networking to me, is talking to my 3 year old son.
4) My wife thinks I need to get a "real" job.
3) When I take a break, I throw in a load of wash.
2) All I hear is... " Since you're home all day anyway, can you just do this...?"
1) I feel like I "live" at the office... Wait, I do !!!

Disclaimer

Opinions expressed in Market Matters are just that, and are subject to change without notice. Opinions are based on historical research and data believed to be accurate, but there is no guarantee that present or future results will be profitable. Investing in the financial markets entails risk, and past performance does not guarantee future performance. The foregoing has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. When publishing a post, I may or may not have a position in the market, or may or may not be contemplating taking a position in the market. TRADESTRONG and it's management are a discretionary trading group and responds to the markets' changing structure in a dynamic fashion. Any and all information included in any post of Market Matters should not be construed as a recommendation to engage in any transaction involving either the purchase or sale of a futures contract or option thereof. The risk of loss in trading futures or options can be substantial, and each investor should carefully consider the inherent risks of such an endeavor, and only risk capital they can afford to lose.

January Rally In “Effect” But Not Firing On All Cylinders

The market was able to take advantage of annual New Year optimism and break out to the upside. For the week the DJIA gained 1.2%, the NASDAQ rose 2.7%, and the S&P 500 tacked on 1.6%, thanks largely to big gains on the first trading day of the year, and the perceived seasonality of the “January Effect.”

Equity-only put-call ratios remain on buy signals. Market breadth has been positive, but not strong, and the volatility indices ($VIX and $VXO) have been in bullish downtrends for some time, as those trends persist.

The markets began the new year where they left off with somewhat better domestic economic news, tempered by S&P's threat to downgrade the sovereign ratings of leading euro zone nations, especially France. Europe’s problems continue to weigh heavily on domestic markets and have curtailed greater risk appetite in our market. There were more reminders of weakness in Italy and Spain, as yields on the 10-year debt of both nations remained elevated and credit spreads widened with German debt.

Investor sentiment remains high. According to Bespoke, ”With a strong finish to 2011 and now a strong start to 2012, individual investors are starting to turn bullish again. According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment is now at 48.88%, which is the highest level since early February. Bearish sentiment dropped to 17.16% which is the lowest level since December 2010.” While not at disturbingly high bullish levels or extraordinarily low bearish levels, sentiment does seem to be frothy.

It is important to note there were also rumors that the White House was planning a large-scale mortgage refinance plan, which was later denied. These rumors of a massive mortgage refinancing fiscal stimulus fueled the surge in the ES (intra-day) yesterday and the decline after the close. This morning, a beat on both the payrolls number and household survey of the Employment Situation facilitated a quick rise to 1282.25, followed by a quick failure and a subsequent drop to 1268.00. Notably, this leaves two failed rally attempts and a double-top with the major interim high from October 27, 2011. Long candlestick tails (wicks) on big news is a contrarian signal, and the bulls' failure to push through and close above this level may foster a short term correction.

Of course, the biggest bearish divergences and the cause for the greatest concerns for the health of the current rally come from Europe. The euro hit a 16 month low against the dollar (EUR/USD), the lowest close since 09/10/2010 and most certainly is creating a drag on the U.S. markets. European credit spreads continue to widen, and the FESX continues to make lower highs and has been unable to trade above it’s 200 DEMA, since failing from from that level on 10/27/2011.