| Fund
or affiliation
Methodology
- Tehnical trading
using long-term trend following, timing entries
during pullbacks.
T. A. Techniques
Employed
- The broader the
market, like wheat and beans, the more likely it
is to have an identifiable major trend.
- Kroll pays no
attention to any facts, only to market action:
- Commodity
"fact" is probably fiction.
- One does not know if
it is complete.
- Anything true is
already reflected in the market.
Trading Techniques
Employed
- Kroll’s basic
art of commoditity trading:
- Wait till a major
trend is clearly established, and decide to make
a big move.
- Put your position in
place during periods of correction against that
trend.
- As the trend
develops, Kroll invests more on each correction
but with smaller and smaller amounts. (against
pyramiding)
- When the major trend
does change definitively, Kroll liquidate during
favorable reactions against the new unfavorable
trend. i.e. reverse the procedure.
- Never argue with the
market, when asked for additional margin,
don’t respond, sell out.
- You should avoid
averaging down in the way, in commodities, the
margin can kill you.
- Every evening he
fills out a large card. He will not change his
strategy once written out on the card.
- It is hard to
establish good positions, and almost impossible
to do it quickly.
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Philosophy
and beliefs
- In commodity
speculation, you must have no other daytime
interests, and do nothing else. You need
"undivided concentration".
History and other
facts
- "Money is made
by sitting, not trading." Jesse Livermore.
- The average life of
a commodities account is about six months.
- Used to be at
Merrill Lynch for 13 years.
Performance Record
- >281% over 3
years: "...he had turned $18,000 of his own
capital into over a million, and the capital of
some 37 quasi-partners... from $646,000 into more
than $2.5M [57% c.a.]", J.Train, MM pp. 118
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