About

To begin with I’m a private trader first and foremost and I’ve made this web site, my daily advisory newsletters, my simple mechanical models and my real time results available to help those individuals who are looking for what actually works in trading currency and index futures.

My governing principle in making available my newsletters and models is this;

I will only make available services I personally trade.

Although I can’t guarantee my newsletters and models will continue to perform into the future as they have in the past I can guarantee,

One - That while the newsletters and models are available on my web site you can be assured I am trading them, and
Secondly - When I feel I'm being disadvantaged by too many trader's executing at my levels you can be assured I will remove the particular newsletter/s or model/s from public sale.

In other words, my core philosophy for this web site is 100% transparency. Pretty simple stuff. Although it's not a money back guarantee at least you know that I do actually trade what I offer on this site, unlike the majority of Educators and Newsletter Publishers who run trading web sites. At least no one will be able to accuse me of being a phoney Educator/Promoter! :o)

Wouldn’t it be nice if all trading “Educators” and "System Vendors" actually traded what they teach and sell? I can only wish more people who purport to help private traders begin to make similar commitments like mine and make their real time results available for scrutiny.

Well its 2010.

IndexTrader™ is now 9 years old and despite turbulent world share markets (the 2000 to 2003 tech bust, the 2003 to 2007 bull market and the 2007 to 2008 Global Financial Crisis) it continues to power ahead making new equity highs. My daily newsletter IndexALERT™ is now entering its seven year and continues to assist active index traders. In 2007 I made a decision to removed my SpiBandit™ model as it wasn't performing as well as either IndexTrader™ or IndexALERT™. I'm a big believer in trading equity momentum and didn't see the value in continuing to trade it and offer it when it was a poor performer compared to IndexTrader™ and IndexALERT™. In October 2007 John Wiley contacted me to revise my Trading The SPI book for its 2nd edition publication. That request lead me to re-release my original SpiTrader™ model which has performed well since its original release in April 2001. During 2008 I released two medium-term trend trading methodologies - BBTT (for index and forex trading) and Key Level (for forex trading). In January 2009 I launched my forex newsletter ForexALERT™. In August 2009 I revised my Key Level model to simplify the strategy and since my ForexALERT newsletter traded Key Level I also revised it in August 2009. In addition the original newsletter portfolio only contained 3 currency pairs and in August 2009 I expanded ForexALERT's portfolio to cover the 5 man currency pairs. In 2010 my second book The Universal Prinicples of Successful Trading is due for release by publishers John Wiley in Singapore.

As a way of giving you an insight into myself and the level of trading knowledge contained in my models and newsletters I’ll share with you my own personal trading journey which I’m sure will sound familiar to many experienced traders.

I’ve now been trading for over 27 years.

I began trading when I joined Bank America as a trainee dealer in December 1983. It was during that month that I became fascinated with the markets.

Now here’s a little history for you market buffs.

Question: In December 1983 which fixed currency was being heavily traded due to it’s imminent float?

Answer: Yep you guessed it ….. the Australian Dollar.

When I joined Bank America Australia’s currency was still fixed and there was heavy speculation that Paul Keating (the then Treasurer of Australia who would later become Prime Minister) would announce the end of Australia’s fixed rate currency regime as part of a macro economic reform package.

As you can image there was heavy trading in the domestic money market as traders were looking to “park” their Aussie Dollars in short term securities. During one week we made over 1 million dollars on the short-term securities desk when 1 million dollars meant something. As you can image after that frantic week I was hooked on the markets!

While I was with Bank America I principally trade Bank Bill Futures and Forward Foreign Exchange.

On my PA (personal account) I traded the SPI®. I first traded the contract in 1986 when the SPI® was four times its current size and back then I used the most sensible and conservative combination of Risk Management and Money Management available to young traders …. my credit card!

After completing my Master of Commerce degree I left Bank America and ever since have maintained my interest in the markets and trading. During my early trading experiences I suspect (no, I actually know) I committed all sorts of trading sins as I almost achieved a hat trick of account melt downs. On the first occasion I traded my $12,000 account up to over $18,000 before running it down to just under $2,000. I magnificently duplicated that achievement on my second attempt while on my third recapitalisation I managed to achieve a 50% drawdown before giving myself a huge uppercut and quit trading.

Over these past 26 years I feel like I have probably seen and researched most trading methodologies available. I’ve lost count of the numerous trading books, systems, seminars and software I’ve purchased.

As I've journeyed along this bumpy trading road I have gained some insights into markets and trading. Some of these insights may sound familiar to you and include:

Embrace choice with your eyes wide open! No doubt you're aware there are hundreds of ways to trade the markets so its wise to keep an open mind when developing your own trading plan. And although people will say there are many roads that lead to Rome, make sure the one you travel along does actually arrive in Rome! Validate your methodology and understand Positive Expectancy.
There exists an inverse relationship between profitability and analysis – don’t procrastinate.
There exists an inverse relationship between profitability and forecasting – I haven't met many successful Elliott Wave, Gann or Geometry traders.
The majority of professional CTA traders use mechanical systems, while the majority of amateur private traders follow discretionary approaches – be careful about which side you choose.
The more grandiose your ambitions the quicker your trading demise – avoid Risk of Ruin and get your head around Money Management.
Indicator fever is fatal.
Price is everything – don’t dilute its power.
Looking at an equity curve overlaid on a market chart is easier than revising Statistics 101 - as they say a picture paints a thousand words.
If Ginger Megs can’t understand how you trade then start again – it's not rocket science, keep it simple.
The process of analysis is “interesting”.
The process of trading is “boring”.
Too much “interesting” will cost you.
“Boring” will reward you.
High “pulse” trading is temporary – don’t over trade.
Low “pulse” trading is sustainable - keep your trades to a size that makes you indifferent to their outcome.
Learn to trade less - sometimes less is more.
People obsessed with trading will find it more difficult to achieve success – work hard in your trading however make sure your “interests” are balanced.
No one, not even you believe it or not, knows where the market is heading – throw away your crystal ball.
Although there are no real secrets in trading, there are nuggets of gold worth searching for - be prepared to pan through piles of trading books (Van Tharp is a good place to start).
The quickest path to trading success is to learn from a “trader” – find a mentor who will allow you to watch them actually trade. There is a reason why the “Master-Tradesman" apprenticeship structure has endured over the centuries.

Well these are just my thoughts and I hope some will resonant with you while the balance may in time.

As I’ve mentioned above I’m a trader first and foremost. Educating others is a secondary role. My newsletters and models represent an accumulation of my trading experience I hope others will enjoy benefiting from as much as I have.

If you have any questions you would like to ask me please fire away (bpenfold@tpg.com.au) and I’ll try to answer them as quickly as possible.

Thank you for visiting my web site.

Successful trading in 2010.

Brent Penfold
Futures Trader
Futures Adviser
(ASIC AFS Licence Number 225946)
Sydney, AUSTRALIA

Contact: Email bpenfold@tpg.com.au
Phone +61 . 2 . 9798 7428

Forex Trading