212: Trading Triumphs - Brent Penfold's Journey to Success
Nov 22, 2023
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Trading veteran Brent Penfold shares his journey, from a chance encounter that launched his career to the mentorship that saved him from trading pitfalls. Topics include unexpected opportunities, the importance of mentorship, transitioning to systematic trading, backtesting, and the value of transparency and accountability in trading.
The importance of mentorship in navigating the trading landscape.
Transitioning from discretionary to systematic trading is a significant turning point.
Using appropriate tools like TradeStation for backtesting and strategy development is crucial.
Deep dives
The Importance of Getting a Job in an Institution
The speaker emphasizes the advantages of getting a job at an institution to learn about trading. They suggest that institutions have resources to teach you and provide valuable mentorship. They recommend finding someone who actually trades and can guide you through the learning process.
Transitioning from Discretionary to Mechanical Trading
The speaker shares their experience of transitioning from discretionary trading to mechanical trading. They recommend finding a mentor who can help in this transition and provide guidance. They also suggest implementing transparency and accountability in trading by sharing simulated trades with a trading buddy.
Using TradeStation for Backtesting Strategies
The speaker discusses their use of TradeStation, a charting and backtesting software, for testing trading strategies. They mention attending a trading conference and getting excited about TradeStation, prompting them to purchase it. They highlight the importance of backtesting and using appropriate tools for strategy development.
Switching to Systematic Trading
The speaker explains that his switch to systematic trading was a defining moment in his trading career. After experiencing losses in discretionary trading with Elliott Wave, he had a conversation with his broker's partner who calmly analyzed the market and provided a different perspective. This led the speaker to realize the importance of evidence-based trading and looking for statistical odds. He started exploring mechanical trading, focusing on simple price patterns, and this became a turning point in his trading journey.
Letting Go of Elliott Wave Addiction
The speaker shares his struggle of letting go of his addiction to Elliott Wave trading. Despite losing money and experiencing a 50% drawdown, he remained determined and believed Elliott Wave owed him. It was a conversation with his broker's partner that cut through the fog and made him realize the need for evidence in trading. This realization marked a decade-long process of transitioning away from Elliott Wave and embracing independent coding of trading ideas using Visual Basic for Applications (VBA) in Excel. The speaker emphasizes the importance of persistence, transparency, and the value of having a mentor in the trading journey.
Dive into the pivotal moments that shaped a trading veteran! Brent Penfold shares the twists and turns of his journey, from a chance encounter that launched his career to the mentorship that saved him from his own trading pitfalls. Get ready for a candid look at the successes, stumbles, and strategies that define a true market maestro.
Key Points Listeners Will Learn:
- How unexpected opportunities can kickstart a trading career.
- The importance of mentorship in navigating the trading landscape.
- Transitioning from discretionary to systematic trading.
- The value of backtesting and choosing the right tools for your strategy.
- Why transparency and accountability are crucial in trading.
Fun Fact: Brent still sometimes counts waves due to his early imprinting with Elliott Wave theory, despite now being a systematic trader.
Next Steps:
Ready to level up your trading game? Visit indextrader.com.au for more details on Brent's upcoming workshop and don't forget to contact Brent for a special 10% discount exclusively for Better System Trader viewers. Just mention you saw him here and get ready to transform your trading!
Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.
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