Rich Trend Trader's Blog

About

I am a Mechanical Engineer primarily working airframe structural adequacy in the areas of loads, static strength, and dynamics.  I have a BSME from Cal Poly, San Luis Obispo and a MSME from The Ohio State University.  I got into studying stock market investing to improve long term performance using some basic trend following systems such as the 13/34 MA crossover.  By happenstance I found that the combination of a trend following system with a market valuation system improved historical results with specific trading rules applied to the data.  As with any system, gains/losses/drawdowns are a part of every investors experience both historically and in the future and the trend model that I have developed is no different.

The trend model is not intended to be a short term (daily/weekly) trading system rather it is a system that attempts to determine the major multi-month or longer market trends.  This would allow it to be used for 401K accounts that have specific rules and trade restrictions.  The goal is to outperform the major indices over the long term with trade signals that do not require the novice account holder to manage a portfolio on a contant basis.  It is recommended that those accounts outside of a employeer 401K plan trade leveraged ETF’s/Mutual Funds to maximize gains over the long term.

I am not an Elliott Wave technician but I follow several EW sites to determine the level of risk/reward of a particular trend signal.  For instance, if the trend model signal is a BUY, then all bullish EW counts are ‘valid’ until a trend model SELL signal.  The same goes for a trend model SELL signal.

The content on this blog is provided as information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author ‘Rich Trend Trader’. ‘Rich Trend Trader’ is not a licensed investment advisor adviser or commodity trading adviser nor is licensed as such with any federal or state regulatory agency. ‘Rich Trend Trader’ does not manage client assets in any way. Any investment decision that results in losses or gains made based on any information on this site is not the responsibility of ‘Rich Trend Trader’. ‘Rich Trend Trader’ may make statements about certain investment vehicles and strategies, but it is not to be taken as investment advice. ‘Rich Trend Trader’ is an educational service, not an advisory or stock recommendation service. All examples/signals are provided for educational purposes and ONLY represent the trades made in personal accounts managed by the author of ‘Rich Trend Trader’.  Investment decisions made by any individual following this blog are the sole responsibility of that individual only and not of ‘Rich Trend Trader’.

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