Meeting Summary & More - June 25, 2008

First, a meeting summary from our Wed, Jun 11th meeting. We had a full house of people interested in Geothermal-DX technology for eliminating the need for heating oil and natural gas for heating/cooling and air conditioning. The investment returns from Geothermal-DX are far beyond what you would ever expect to earn in the stock market with the best available techniques and strategies. Furthermore, for all of us that are concerned about the high prices of energy products these days, it is supremely nice to know that there is something we can do about it and with technology we have NOW. We can indeed reduce our carbon footprint now in ways that are extremely economical. To contact our speaker Drew Steitzel, call 203-733-5161 or email steitzels@aol.com. In a year, I'll guess that the waiting line to install one of these systems will be six months. As an additional follow-up, I went to the drilling site of his Stamford installation and I was very impressed by the crew and picked up additional information which only makes me more confident in the fidelity of the system. Google "geothermal dx" to learn more too.

As far as the performance of the group picks last month, it was a down month of less than 2% utilizing the power of money management. Mark Juviler was the winner with his short Dow Jones Industrials pick and Peter Afif was a very close second-place with his long commodities ETF pick. Congratulations to Mark for winning and to both Mark and Peter for two great picks that yielded > 3 avg true range moves in their favor. We have a new slate of picks that I posted at the website in the spreadsheet link below. Scroll down until you find the spreadsheet link.

Second, a question for you: Would you like to have a meeting on Trading System Development? Stan Katz felt we could have a separate group meeting on this topic. Any thoughts? Third, Mark Juviler and I are hosting a meeting next Tuesday, July 1st on our automated trading system portfolio in Westport. We can send you an invitation to the event separately if you send us an email request to twest@compocapital.com or to mjuviler@compocapital.com. The basic concept is that Mark and I have a system that trades in the Dow, Yen, Gold, Corn and Bond futures that is ready for funding. Come and see a live replay demonstration of this system.

Lastly, our next meeting is July 23, the 4th Wed in July. That is the best meeting date for July. Hope you can make it. Speaker/topic TBA.

Regards,

Timothy West

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I typed the following comment back on June 13 after the group meeting after talking with Stan Katz.
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Idea - Technically based trading decisions can be allowed for the group. In other words, you could devise a system to buy and sell automatically in order to capture a return. The risk would stay the same, you would be stopped out when the loss hit your stop for your % of the account. Last month, for example, we had 9 picks. That means $11,111 risk per trading idea because I want to limit our loss in any 30-day time period to 10% or $100,000 on our account of $1,000,000. The size of the trades would be confinded to 3 ATR's would equal a $11,111 loss. If your trading system was active, then it would require less risk per trade so you wouldn't lose your $11,111 (which is the same as saying 3R or 3 ranges, where R=Ranges or ATR's). If your systems use too large a position size you will get stopped out too fast. If you trade too small, then your return wont be optimal and over the long haul wont make enough money to make it worth your time to follow it. It is paramount to optimally size your trades to maximize your long term return. As far as our next meeting - Stan suggested that we have a systems trading discussion to cover issues related to system trading development, how to design a system, how to overcome all of the many challenges that arise when designing trading systems. Any comments, thoughts or reactions - please let me know by replying here.
June 13, 2008 6:01 AM