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Thursday, July 28, 2005

Trade Center Inc. Interview: Dean Hoffman

There is an interview between Scott Hicks of Trade Center Inc. and Dean Hoffman on Michael Covel's web site. Quite interesting.

Trade Center Inc. Interview
July 26, 2005
Scott Hicks. What is your entry method to the market?
Dean Hoffman. My primary entry is based on some form of trend recognition. It is not merely a function if price but rather a combination of algorithms and filters. I also use money management overlays for position sizing considerations, as it's a critical component.

Q. How important are the entry and exit points for you?
A. Entry's and exits are much more important than they used to be.

Q. You are a systematic trader, what do you tell clients who believe in using fundamentals in trading?
A. Good luck, I've never seen it work over the long run. The problem is that the leverage in futures is so large that even if your long-term fundamental opinion is correct you can still lose all your money 100 times before the market goes the anticipated direction.

Q. As a trend-follower, I can assume that you don't shoot for 100% winners. What are your goals in terms of successful winning trades?
A. I'm happy with 40% winners. Percentage of winning trades has very little to do with success. Some of the worst systems I know of have a very high percentage of winners. Focusing on percentage of winning trades is fools gold.

Q. Is there such as thing as an optimum time frame to hold a position?
A. I've found it very difficult to build good winning systems with time frames much under a few weeks.
Read further:
Michael Covel: Trade Center Inc. Interview


Anonymous PENNY STOCKS said...

Interesting interiew.

12/03/2012 02:54:00 PM  

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