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Tim: Hello everybody and welcome back to traderinterviews.com. Thanks for joining me for another show this week. As usual, the idea of every interview we do is to give you ideas to apply to your own trading account, maybe give you some ways to think about looking at the markets you may not have considered in the past. Our guest today is David who is a full-time trader in the mid-west. So David, thanks very much for joining me on the phone today.
David: It's a pleasure. It's good to I guess sort of reintroduce what I'm doing right now. As you and I were talking about before we started recording, you do have to make adjustments as the markets adjust, and you have to be able to use those same methodologies in any market at any timeframes. We can talk about that a little bit.
Tim: Absolutely! So give us an overview of your strategy. Are you a day trader, a swing trader, what markets, that sort of thing.
David: No, I'm primarily a swing trader in stocks and primarily it's in the long side that while we're short, I'll take short positions, net short positions from the standpoint of using the ultra-short ETFs being long with us. Because the most aggressive stuff that I do, I do in tax-deferred accounts 'cause I'm trying to basically protect myself from the tax implications.
But what I do basically is I use Fibonacci patterns, many of which were taught to me by a gentleman you may already know called Larry Pesavento who has been doing this for 30 years, but the difference that I use is that number one, I look at momentum reversals and I take that pattern data with the momentum and I throw it into neural net models which give me a statistical probability that the trades I'm going to take will have a positive expectancy and that's basically how I do things. Here's what my models look...
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