Tearing Up The Technical Analysis Rulebook

Featuring Adam Grimes

Adam Grimes of Waverly Advisors has torn up most of the rule book when it comes to technical analysis, which he said often doesn’t work in the way people think. With a longer term time-view, his framework is based on pattern recognition, with an awareness of momentum and how it develops to actively manage risk. Believing markets are usually random and efficient, he’s looking for the points where they are less than efficient for potential profit opportunities.

Published on
17 October, 2016
Topic
Monetary policy, Investment Framework, Trading
Duration
45 minutes
Asset class
Currencies, Commodities, Equities
Rating
104

Comments

  • AU

    Alex U.

    17 9 2017 19:20

    0       0

    Top man....just subscribed to his blog. Thanks very much RVTV for the i'vew. ....and no, there is no need for somebodys system to be delivered to us on a silver plate. Some hints are just enought :)

  • RB

    Rob B.

    5 11 2016 22:43

    1       0

    I wish he could have go through an historical example using the indicators in the way that he specifically uses them. I am a classic TA signal trader and going through his methodology to understand his abstract ideas would have been super helpful to me.

  • ML

    Michael L.

    28 10 2016 04:06

    1       1

    Grant tried really hard but just couldnt get a straight answer out of this guy. Sounds like Grime is a blackbox quant guy and there's just nothing useful he can say without giving away the shop

  • R

    Robin .

    25 10 2016 17:55

    4       0

    Dont be fooled by might appear to be a nebulous discussion. Adams book was a watershed for me and my trading results. He demonstrates that if you are using TA you also need to be clear as to what stage the market is currently in i.e. accumulation,markup, distribution or markdown, and explains it in a way that gave me a new insight into how the markets work.

  • JD

    Jonathan D.

    23 10 2016 14:49

    1       0

    More TA please. Especially mkt participants who say I don't know.

  • WM

    William M.

    23 10 2016 13:58

    5       1

    Interesting and very different perspective from the majority interviewed on RVT. I can see how some RV viewers would baulk at this interview however let us refrain from derogatory comments, this is not Yahoo or Facebook. I agree there was less concrete presentation or logical examples of facts in this discussion but he clearly is successful. Nothing wrong with his perspective, its just different. RVT should bring us different perspectives or else its just another Zero Hedge.

  • BT

    Bennet T.

    21 10 2016 17:11

    2       0

    Adam is a Great Trader and Risk Manager. I have been working with him and his firm for many years and found his work and perspective very helpful.

  • VS

    Victor S.

    21 10 2016 13:46

    0       5

    This man spent 23 minutes telling us about the good and bad of charts?! Please anyone listening to your service learned this one year into a wall st career.

  • WS

    Wes S.

    20 10 2016 20:40

    0       3

    ...a big waste of time...probably one of the worst interviews ever on RV...with the little useful information, just gibberish avoiding any explanation of his methods...

  • kv

    keith v.

    20 10 2016 08:26

    1       0

    A very selfless trader who dares to be different. Great to see Adam on RV.

  • FG

    FundamentalAnalysis G.

    19 10 2016 11:54

    3       2

    Great Interview, I think those who talk about an imminent crash need to realise that the fed can just create more money, buy up more bonds or stocks to keep everything afloat. The government could also issue more debt, have the fed buy it and then ultimately never need to pay back the fed when the bond matures as effectively they are both one and the same. The government could use the money from the bond raising to invest directly into the economy and keep the whole game up for a lot longer then people think. Sure it may eventually lead to some sort of inflation, however they could perhaps balance it with the argument that since we have a demographic issue, spending may eventually decrease resulting in some deflationary pressures etc etc..... the situation is quite as simple as it seems. Yes as it stands the fed is trapped, but they don't have to let the markets collapse, game can continue for many many years.

  • FG

    FundamentalAnalysis G.

    19 10 2016 11:54

    4       1

    Great Interview, I think those who talk about an imminent crash need to realise that the fed can just create more money, buy up more bonds or stocks to keep everything afloat. The government could also issue more debt, have the fed buy it and then ultimately never need to pay back the fed when the bond matures as effectively they are both one and the same. The government could use the money from the bond raising to invest directly into the economy and keep the whole game up for a lot longer then people think. Sure it may eventually lead to some sort of inflation, however they could perhaps balance it with the argument that since we have a demographic issue, spending may eventually decrease resulting in some deflationary pressures etc etc..... the situation is quite as simple as it seems. Yes as it stands the fed is trapped, but they don't have to let the markets collapse, game can continue for many many years.

  • MB

    Matthias B.

    19 10 2016 11:43

    0       0

    apologies for the typos. sloppy on my behalf.

  • MB

    Matthias B.

    19 10 2016 11:42

    2       0

    ..is not for trading ideas but to enjoy the privilege to absorb and learn about views how todays complex investment world can be understand. and all this wisdom for phantastic value for money. tks!

  • MB

    Matthias B.

    19 10 2016 11:39

    2       0

    this i'view did not add much value to me BUT it is a very valuable interview in the context of RV. have a variety of different view and let the speakers explain their thinking. RV to me is not for tra

  • ns

    niall s.

    18 10 2016 19:03

    4       0

    To me this interview brings home the fact that there are many techniques that people develop to survive in the financial markets , no technique should be considered less valuable than another if it works for that individual. I liked his self taught approach and will be reading his blog in future , thanks for bringing Adam to my attention.

  • SB

    Stewart B.

    18 10 2016 15:48

    2       0

    I really enjoyed the interview. As a long term reader of Adam Grime's blog, book and podcasts, his thinking gets even more valuable once he gets into detail.

  • GE

    GABI E.

    18 10 2016 12:56

    4       0

    very interesting interview , I enjoy his different approach and perspective , th'x!!

  • IH

    Iain H.

    18 10 2016 12:12

    1       0

    Very interesting interview, I enjoy the variation of RVTV guests. Looking from a different perspective is always helpful, does not have to include a specific idea, learning how others think and view markets has helped me.

  • A1

    Animal 1.

    18 10 2016 07:20

    1       0

    Trend following with volatility tracking. Enjoyed the video. Thanks RVTV

  • AH

    Andreas H.

    18 10 2016 02:53

    0       1

    One of the best interviews! Super! Thank you!

  • CL

    Claus L.

    18 10 2016 02:03

    9       0

    This is an exceptional conversation with a trader who has understood both markets and people on a deep level. I fail to understand the poor ratings this interview has attracted....

  • SP

    Steve P.

    18 10 2016 00:22

    11       0

    An extremely interesting interview with someone who understands and uses behavioural finance to his benefit. A greatly unappreciated science as demonstrated by the number of thumbs pointing down. For those that incorporate a degree of behavioural understanding into their investing framework, the rewards are there. Daniel Kahneman's "Thinking Fast and Slow" is a superb book to begin to understand a fascinating and ultimately productive topic.

  • BL

    Bruce L.

    18 10 2016 00:11

    7       0

    The market will find and exploit any flaw in your personality

  • CH

    Calvin H.

    18 10 2016 00:00

    8       1

    and what MZ M said! I worry about the ill advised, flippant comments will turn off/away the folks you are interviewing! Let's give RVTV some friggin credit here and trust their 'menu'. Jeez!

  • wc

    william c.

    17 10 2016 23:56

    2       0

    Useful. Different background. Interesting. Thanks

  • RP

    Ron P.

    17 10 2016 23:47

    11       0

    It is a very rare trader that can use both sides of the brain These are exceptional people with exceptional rezults

  • RA

    Robert A.

    17 10 2016 22:34

    8       0

    I have been "playing" the ponies for 50 years and the similarities with trading and money management are too numerous too count. One original adage that I came up with years ago is that "I will run out of emotional capital to properly gamble (or trade) before I run out of
    money". I boil "playing the horses" down to the recognition of trends, patterns and consistencies. This guy would have been a heck of a horseplayer. Having the emotional ability to stick to your discipline and "size" properly during both winning and losing streaks is what separates the amateurs and "tourists" from the successful players year end and year out. Ignore this Gentleman at your own peril.

  • BB

    Bill B.

    17 10 2016 19:04

    2       0

    Looks a lot like Richard Grimes, author of "Professional ATL Com Programming".

  • RS

    Roger S.

    17 10 2016 18:58

    7       0

    As a mostly technical trader who has also done a lot of statistical testing of what really works I think his discussion should be eye opening to those who use TA and have not done that type of testing.

  • Sv

    Sid v.

    17 10 2016 16:59

    9       9

    for a guy who talks about the discipline of composing classical music, this guy is all over the place. Trying to get something usable from all this is like trying to nail jello to the wall.

  • MM

    MZ M.

    17 10 2016 16:32

    39       1

    Good discussion guys - I appreciated being able to sit in and listen. Good questions Grant with good honest answers. Interesting to hear how pros think and look at markets. - Just my opinion now but as to negative comments across videos I say - its easy to be a critic - i don't get all the recent arrogance being shown in many video comments. If one is subscribing to RVTV only looking for trading recos like many of the newsletters out there I think you have the wrong idea about what RVTV is all about. While one may get an occasional market trade idea, a lot of RVTV is knowledge and empowering the world with this knowledge - its an education and an opportunity to hear people's ideas you would otherwise never have access to, unless it was a 3 min segment in mainstream financial "news"

  • CC

    Christopher C.

    17 10 2016 16:05

    5       1

    Great interview for those who don't want/need to be spoon fed. Lot's of interesting/actionable things to think about. Will definitely be watching again (at least once if not more times) to fully digest. One of the things I am learning to ask myself in these kinds of videos is if Grant gets it/sees the value and I don't immediately or fully... what am I missing?

  • DR

    De R.

    17 10 2016 15:46

    3       1

    Does he work with Dennis Gartman?

  • SC

    Sau C.

    17 10 2016 15:19

    8       3

    I thought this interview was highly informative and would love to see him back.

    One of his main points is that the past 2 years is simply a large range digestion off the rally from 2009-2014. Many believe markets are in the process of topping but If a stock ripped higher for 2 weeks and spent 2-3 days digesting, no one would question the uptrend.

  • RK

    Raitis K.

    17 10 2016 14:59

    21       2

    Good video. I don't understand why there's so much hate about it. There were good points on trading discipline, risk management and he did give some insight into his methodology, core of which is mean reversion and momentum... I can imagine that for somebody who wants to develop as a technical trader, this interview would be useful. Not so much for the long term macro investors. There are many styles of trading/investing, and I'm glad RV covered this.

  • AA

    Aymman A.

    17 10 2016 13:45

    10       24

    Talks intelligently about nothing. No useful thought.

  • TR

    Tobias R.

    17 10 2016 12:54

    11       11

    Very little of practical relevance or insight about his methodology.

  • NA

    Nickle A.

    17 10 2016 12:28

    9       12

    Felt like a filibuster