Timing Models and Proven Indicators with Nelson Freeburg

Trading luminaries like Linda Raschke and Paul Tudor Jones regularly follow the guidance of Nelson Freeburg’s Formula Research newsletter, which analyzes a different trading system in each issue. Now, this acclaimed expert can guide you, too, with this thorough new video workshop.

Tap into Freeburg’s expertise, attained through years of testing, evaluating and writing about the most powerful, consistently successful trading systems. Freeburg finally exposes all the buy/sell signals, proven price patterns and steps needed to implement and adapt your own reliable system. Plus, he details some of the most classic, time-tested systems including the Zweig 4% model, the Wilder Volatility System, The Pentad Stock Market Timing Model and an inter-market bond futures model. There’s a system covered for every trader’s temperament.

As he methodically explains the advantages of mechanical timing systems over discretionary trading strategies, you’ll soon see how his insights can enhance your own trading results. And you’ll discover ….

- Methods to test your timing strategies before risking real money
- Keys to identifying per contract performance vs. percentage return
- Which markets have the best historical record for trend followers
- The importance of optimization and “out-of-sample performance”
- The value of a trading system’s “flat time” measurement
- A simple seasonal strategy – and so much more. With its in-depth online companion manual – this session will help you sharpen trading skills, lower risk exposure and increase your potential for ongoing, reliable profits.

Expert: Nelson Freeburg
Type: Video
Running Time: 90 minutes
Manual Length: pages

Trading the Pankin Strategy for 30% Annual Gains and Low Risk

Could you use a purely mechanical timing formula that has produced 10 percent gains a year since 1986 with strictly controlled risk? Nelson teaches you everything you need to trade the Pankin Sector Fund Strategy for exceptional profits and reduced risk. The Pankin Strategy trades Fidelity Select sector funds. Sector funds tend to trend more consistently than individual stocks or commodities and produce unusually reliable trading patterns. If you had traded this simple yet powerful system over the past twelve years, you would have outperformed 99 percent of all CTAs. The Pankin Strategy takes just a few minutes each week to update, uses straightforward logic and works for virtually any size account.

The Pankin Strategy has a superb hypothetical track record — 35 percent annual gains since 1986 (real-time performance has been just as strong). However, the original strategy requires withstanding drawdowns most individual traders find unacceptable. Money manager Mark Pankin, developer of the system, posted returns of 57 percent in 1995 and 45 percent in 1996 but the drawdowns sometimes represented as much as 25 percent of total equity.

To better gauge the risk, Nelson tests the Pankin Strategy over a wider range of market conditions. In this workshop, he simulates Pankin trading back to 1970 (considerably longer than the Fidelity Select sector funds have actually been traded). You will see that the original strategy would have generated reassuringly strong profits throughout the past twenty-eight years but with frequent and often punishing equity drawdowns (the maximum equity dip would have been an unacceptable 45 percent).

To help curb the risk, Nelson introduces you to a variety of defensive tactics he uses along with the original Pankin Strategy. As he adds risk-control measures, you will observe a powerful trading system unfold. To insure that the evolving system is theoretically sound, he tests the findings across multiple portfolios, time frames and signals. The resulting variant of the Pankin Strategy has gained 30 percent a year since 1986 with just 12 percent drawdown!

Central to this final comprehensive trading system is a filter Nelson uses to confirm Pankin signals. He demonstrates how this indicator is almost certain to capture every major stock market trend. With this and other defensive measures, you will trade the Pankin Strategy more confidently to achieve aggressive profits with limited risk.

Building a Mechanical Trading System from the Ground Up (1996).

Testing is a critical area often neglected by technicians and traders. Nelson clearly demonstrates the ease with which testing can be performed given today’s sophisticated workstations and high-performance computers. The testing power that these tools provide is now readily accessible to all traders and managers.

Nelson describes the process of building a mechanical trading system, providing concrete examples of high-return/low-risk strategies for a range of markets. Nelson also shares his favorite high-performance trading systems tested on TradeStationTM. The code (which is given to you) and methods Nelson uses are clearly stated and can be translated for use with many other popular software systems.

About The Expert

Expert: Nelson Freeburg
Type: PDF Workbook MP3 Audio
Running Time: 90 minutes
Workbook Length: 30 pages

Building a Mechanical Trading System from the Ground Up – Part 2

In this session, Nelson expands on what he taught in his 1995 session. He takes more time to review the things he might have left out the year before. He also makes sure you have a understanding of what he taught last year.

He builds a timing model that illustrates the power of mechanical trading systems following a logical progression. He begins with a familiar but basic timing method and then adds new features one at a time, enhancing the basic model progressively. As he builds this model, Nelson discusses one of the primary pitfalls of system design — excessive curve-fitting. You will learn how techniques like out-of-sample testing, walk-forward modeling, and parameter sensitivity checks can safeguard against the hazard of over-optimization. Finally, you will gain access to a high-performance trading system that incorporates all of these sound modeling principles. Nelson shows you how to adapt the system to trade items in a broad variety of markets including currencies, futures, indices, fixed income, and stocks.

Traders will learn how not to put themselves at a disadvantage by unnecessarily restricting their research focus. Nelson highlights some innovative and highly effective timing methods that can broaden this focus. You will learn that these little understood and often ignored factors, when researched properly, can greatly increase trading profits and, at the same time, reduce equity drawdown. To illustrate his methodology, Nelson provides concrete applications for a range of markets. He presents several high-return/low-risk strategies for mutual fund switching, equity and fixed-income. Nelson also shares his favorite high-performance trading systems for stock index futures, T-bonds, metals and foreign exchange.

About The Expert

Expert: Nelson Freeburg
Type: PDF Workbook MP3 Audio
Running Time: 90 minutes

Building a High Performance Trading System:What Works and What Doesn’t Part 1

In this session, Nelson builds a timing model that illustrates the power of mechanical trading systems following a logical progression. He begins with a familiar but basic timing method and then adds new features one at a time, enhancing the basic model progressively.

As he builds this model, Nelson discusses one of the primary pitfalls of system design — excessive curve-fitting. You will learn how techniques like out-of-sample testing, walk-forward modeling and parameter sensitivity checks can safeguard against the hazard of over-optimization.

Finally, you will gain access to a high-performance trading system that incorporates all of these sound modeling principles. Nelson shows you how to adapt the system to trade items in a broad variety of markets including currencies, futures, indices, fixed income and stocks.

Traders will learn how not to put themselves at a disadvantage by unnecessarily restricting their research focus. Nelson highlights some innovative and highly effective timing methods that can broaden this focus. You will learn that these little understood and often ignored factors, when researched properly, can greatly increase trading profits and, at the same time, reduce equity drawdown.

To illustrate his methodology, Nelson provides concrete applications for a range of markets. He presents several high-return/low-risk strategies for mutual fund switching, equity and fixed-income. Nelson also shares his favorite high-performance trading systems for stock index futures, T-bonds, metals and foreign exchange.

About The Expert

Expert: Nelson Freeburg
Type: PDF Workbook MP3 Audio
Running Time: 90 minutes
Workbook Length: 46 pages