| Fund or
affiliation
Methodology
- Opportunistic and
contrarian attempt to trade market tops and
bottoms in futures with an emphasis on risk
control.
Research Techniques
Employed
- Thinks Marty Zweig
and Ned Davies are great. Pretcher is best
because he the ultimate market opportunist.
- He attributes a lot
of his success to Elliott Wave approach.
Trading Techniques
Employed
- Contrarian attempt
to buy and sell turning points. Keep trying the
single trade idea until he changes his mind,
fundamentally. Otherwise, he will keep cutting
his position size down. Then he will be trading
the smallest amount when his trading is worst.
- Considers himself as
a premier market opportunist. When he developed
an idea he will pursue it from a very-low-risk
standpoint until he has been proven wrong
repeatedly, or until he changed his viewpoint.
- Swing trader, the
best money is made at the market turns. His
missed a lot of meat in the middle, but caught a
lot of tops and bottoms.
Risk Management
Techniques Employed
- Spends his day
making himself happy and relaxed. Gets out if a
losing position is making him uncomfortable.
Nothing’s better than a fresh start. Key is
to play great defense, not great offense.
- Never average
losers. Decreases his trading size when he is
doing poorly, increase when he is trading well.
- He has mental stops.
If it hits that number, he is out no matter what.
He uses not only price stops, but time stops.
- Monitors the whole
portfolio equity (risk) in realtime.
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Philosophy
and beliefs
- He believes prices
move first and fundamentals come second.
- He doesn’t care
about mistakes made 3 seconds ago, but what he is
going to do from the next moment on.
- Don't be a hero.
Don't have an ego. Always question yourself and
your ability. Don’t ever feel that you are
very good. The second you do, you are dead.
History and other
facts
- Flamboyant lifestyle
- Chesapeake Bay Mansion, private 3000-acre
wildlife preserve, beautiful women, fine
restaurants.
- A charitable fund to
finance college education of 85 elementary school
graduates in part of Brooklyn.
- Personal intensity
in trading - "Buy 300 at even! Go, go, go!
Are we in? Speak to me!"
- An article he read
at college on Richard Dennis inspired him to be a
trader. "I thought that Dennis had the
greatest job in the world."
- Eli Tullis, a famous
cotton trader, was his teacher. Tullis taught
that trading is very competitive and you have to
be able to handle getting your butt kicked.
- 85% of his net worth
is in his funds.
Performance Record
- >99% over 5
years: "Combine 5 consecutive, triple-digit
return years with very low equity retracements.
(... fudging slightly; in 1986, ... only a 99.2%
gain!)" MW by Jack Schwager 1989.
- In the month of
October, 1987, Tudor Futures Fund registered a
62% gain.
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