Let's start with a sample backtest....

The following data is from an actual backtest of a trading strategy created using the trading rules outlined in the trading course:

  • Backtest Info

    • Backtest Period: Jan 2014 to Dec 2024 (10 years)
    • $100,000 Initial Investment
    • Risk (R) per trade= 1% of capital
    • Channel Breakout Entry

    (Past Performance is not an indication of future results. Background, education, and experience all play factors. Your results will vary.)

  • Trading Results

    • Compound Annual Growth Rate = 16.25%
    • Maximum Drawdown = 17.34%
    • Total number of trades= 338
    • Winning trades= 145
    • Losing trades= 193
    • Win %= 42%
    • R multiple on winning trades= 2.97
    • Total profits =. $350,769

What's covered in the course...........

Rule #1 - What Markets to Trade

In the first module of the training we will work together to build a diversified portfolio of approximately 30 markets that you will trade. By trading diversified, uncorrelated markets it will help smooth out your equity curve by targeting your trades within the strongest trending markets. To get started it is recommended that you build your market portfolio using Exchange Traded Funds (ETF's) within the 4 main financial markets including:

  • Equities
  • Bonds
  • Commodities
  • Currencies

Rule #2 - How to Identify Trending Markets

In this module you will learn how to identify and trade the strongest markets in your market portfolio. This goes against the conventional investing advice of buy low, sell high.  When trend following trading, you want to buy high and sell higher.  The majority of trend following traders will buy on a breakout from some defined level.  This defined level could be a channel breakout, a 52-week high, a new all-time high, or some other level that allows you to catch the momentum of the trend. 

Rule #3 - How to Enter the Trade

To be a successful systematic trader you must have a clear trigger that allows you to enter the trade without second guessing the decision. In this module you will define your entry trigger. If you are using a breakout system, the trigger could be close above the breakout level.  Each day you will review your watchlist to see if any markets meet your entry trigger criteria; and if they do, you place a buy stop order at or above the high of the close with presumption that the trend will continue on the next trading day. Your buy stop would be hit, and you would be in the trade.

Rule #4 - How to Exit the Trade if you are Wrong

You need to accept the reality that with trend following trading you will be wrong more often than you are right.   Before you enter any trade, you need to define the price in which you will get out if the trade does not go as originally planned. In this module you will formulate your stop loss exit. There are many ways to determine your stop loss exit.  Like the rest of your trading system, it must be something you are comfortable with and clearly understand the logic behind it.  You can consider using a percentage stop loss (i.e., sell if stock price drops x% below purchase price) or a stop slightly below the breakout price, a specific moving average, or some multiple of the Average True Range (ATR).

Rule #5 - How to Protect your Capital

Money management is the most important component of your trading strategy. In this module you will determine how much money you are willing to lose if you are wrong. Many studies have been undertaken that prove that you should not risk more than 2% of your portfolio on any one trade. In the previous trading rules you determined your entry price and stop loss exit. You can then apply your defined risk % per trade to calculate how many shares you can buy.

Rule #6 - How to Exit a Profitable Trade

Finally we will move onto the fun stuff. Your Trading Strategy has followed the successful traders mantra of"Cut you losses short and let your profits run."  As such a number of your positions have continued to follow the prevailing trend, and you are making money on these positions.  With a trend following trading strategy, you need to resist the urge to sell your profitable positions and let the trade continue so you can capture as much of the trend as possible. You should, however, have a trailing stop that follows your trade up and is always active; so that when the trend eventually ends, you will automatically be stopped out, so you can capture as much profit as possible.

  • This IS for you if...........

    ✓ You want to use your engineer's brain to develop a systematic, rules-based, trading strategy that allows you to approach trading as a business. Your Trading Strategy is your business plan. Each day you execute your plan independent from the market noise. You are in control of your own destiny.

    ✓ You are not comfortable with the occasional 50% drawdown, on 7% annualized returns, that buy and hold investors must endure approximately every 10 years. A systematic trading strategy can help you avoid the large drawdowns while generating above average annualized returns.

    ✓. You are not comfortable handing over 2% of your money ever year to "experts" who are really only looking out for their best interests.

    ✓ You want to follow in the footsteps of some of the world's best traders. Systematic, trend following, trading has been used by some of the world's best traders including Tom Basso (a Chemical Engineer!), John Henry (owns Boston Red Sox) and Jerry Parker (famed Turtle Trader), to outperform the market over the long term.

    GET YOUR FREE COURSE PREVIEW 
  • This IS NOT for you if...........

    ✓ You are looking for a black box, holy grail trading system that promises 100% annualized returns. (They don't exist no matter what the "gurus" on social media tell you.) Trading is hard. You need to be comfortable being wrong more than you are right.

    ✓ You are looking for someone to send you hot stock picks. That approach never works out well. My goal is to give you the tools to become an independent trader who doesn't rely on news, tips and gossip.

    ✓ You want to be a day trader stuck to your computer screen through the day. Once you have created and backtested your trading strategy, using the rules outlined in the course, it should only take you 15 minutes a day to execute. That gives you the freedom to live and work anywhere in the world.

    ✓ You are impatient and jump from strategy to strategy always looking for the next big thing. To be a successful trader create your trading strategy, backtest it to ensure it is profitable and then stick with it through both bull and bear markets.

    EMAIL ME WITH QUESTIONS 

Meet your Instructor.....

Bruce Grundon

Bruce worked in the engineering field for over thirty years. After selling the consulting engineering company he co-founded he shifted his focus to the world of trading and investments. Bruce saw an opportunity to utilized the analytical engineering mindset to improve investment and trading processes and results. With this goal in mind Bruce founded Voodoo Trading to help others "Trade Like an Engineer" to become a more systematic and profitable trader.

  • Step 1: Create your Personalized Trading Strategy

    In our flagship Trading Course "How to Build a Systematic, Rules-Based, Trading Strategy" you'll learn how to create a profitable trading strategy that matches your personality. Get expert instruction in building a  trading strategy that's easy to understand and consistently execute.

    Start with FREE Preview 
  • Step 2: Systematically Execute your Trading Strategy

    Our Trading Journal is a daily/weekly/monthly planner designed specifically for traders who want to elevate their trading to the next level. It will provide you with a systematic process to ensure you consistently execute your strategy so you don't miss the next big trend! 

    Order your Trading Journal 
  • Step 3: Work 1:1 with Bruce to improve your Trading

    Our 1:1 coaching services allow you to work directly with Bruce to build and fine tune your Systematic, Rules-Based, Trading Strategy. During your 1 hour session you will be able to learn from Bruce's 30 year's of trading experience to build your personalized Trading Strategy. 

    Schedule a 1:1 Meeting 
  • Amazing Course!

    "I have a very limited knowledge about trading. I have been too scared to try trading as I did not understand trading. This course has given me some really great rules, strategies, and information to help me become a successful trader. I am looking forward to backtesting my choices and then start trading! I would highly recommend this course to help you learn more trading strategies and give you the best chance of being a successful trader by consistently applying the rules." - Denise B.

  • Trend Following Course

    "This is an excellent course for people to learn a simple yet an effective way to make money via trend following and not having to be glued to the screen all day long. It takes you step by step to build a simple method to trade/invest in the stock market by following mechanical rules whereby emotion can be removed from it. I recommend this course." - Sergio A.

  • EXCELLENT

    "This is a great journal. It makes things so easy and disciplined. I only wish I would have had this journal 1000's of trades ago. However, I am happy to have it now. Thank you for a very high quality and well thoughtful journal. Great reference to my trades that worked and didn't work. Very nice. Thank you." - John M.

NO MORE WAITING. NO MORE HOPING. GET STARTED TODAY......

In our flagship Trading Course "How to Build a Systematic, Rules-Based, Trading Strategy" you'll learn how to create a profitable trading strategy that matches your personality. Get expert instruction in building a  trading strategy that's easy to understand and consistently execute. When you sign up for the FREE course preview you will also get access to our FREE Trading Strategy Template!