The “Brandt Approach” to Moving Averages

Featuring Peter Brandt

Celebrated technical trader Peter Brandt, founder of Factor Trading LLC, explains why moving averages are a key component of his trading process. Filmed on May 15, 2018.

Published on
5 July, 2018
Topic
Trading
Duration
8 minutes
Asset class
Equities
Rating
0

Comments

  • DI

    Dabangg I.

    6 7 2018 17:29

    1       0

    and so why 18?

  • JG

    John G.

    6 7 2018 09:00

    3       5

    so basic. absolutely nothing new here! Expected so much more from somebody who has traded for 40 + years!

    • CY

      C Y.

      6 7 2018 13:08

      3       1

      post this comment when you have the discipline of Peter and compound like he does.

    • AL

      Andrew L.

      9 7 2018 14:21

      0       0

      I love that someone of the caliber and experience of Peter Brandt is teaching the most basic fundamentals. The point is not to introduce us to an idea we have never considered. Obviously everyone understands a simple moving average. The gold here is that we are being told, by one of the best in the business, that you do not need more information, more indicators, more sophisticated techniques and tricks, that they are a distraction. You can spend a lifetime effing around with all the indicators you want, drawing all the lines in the world and lose your ass 100 times over. The Peter Brant series is amazing. I rewatched the risk management episode a couple times. Peter Brandt focuses on excellent risk management and downplays entry. With great risk management it almost doesn't matter what your entry is. You from will keep from loosing too much if the trade does not work out and live to try again. In this sense his technical analysis simply give him a tool to make consistent decisions on entry and exit. Thats an awesome lesson and it deserves constant reinforcement.

  • MS

    Mitchell S.

    6 7 2018 03:26

    5       2

    Not much that is helpful here.
    Based on the charts shown, it is not obvious when he would enter or exit a trade.
    I would prefer to see the actual trades based on the charts and see if they were actually profitable.
    In some of them, it appears that you would be whipsawed. Perhaps that is the price you pay. But is would not guarantee letting your winners run as was stated at the beginning of the video.

    • AT

      Adam T.

      13 7 2018 14:50

      0       0

      The video is for those already in a position and have difficulty keeping trades open whilst in profit, to let them run. Get out once the moving average reverses and price closes below/above it. Being whipsawed out is just part of trading, the point in letting winners run is to keep probability on your side. There is no 100% probability (guarantee as you put it) of a position to run but you have a guaranteed 0% chance of making any more money on it if you close the position. Once it hits your stop then it hits your stop, at least you gave yourself a chance of making more on an already winning position.

  • JH

    Jesse H.

    6 7 2018 00:21

    0       0

    Very helpful brief discussion of MAs. Would be great to have Peter speak more about when technically he gets into trades and what key factors he normally considers.

  • PG

    Pablo G.

    5 7 2018 22:53

    3       0

    I like MAs but using only one MA to enter and exit trades should not profitable as MAs are lagging indicators. I think Peter meant to use one MA as a guide especially to stay in trades (e.g. don't exit if your MA is still moving in your direction). What I find tricky is what to do when price crosses your MA in the opposite direction. In the video, Peter seems to be suggesting to stay in the trade until the MA rolls over.

  • DR

    David R.

    5 7 2018 20:06

    1       0

    Short and sweet. One of the better videos I've seen on RV. Thanks.

  • JH

    John H.

    5 7 2018 18:33

    0       0

    Elaboration on how 14 and 21 DMAs are used in combination would be interesting. Thank you!

    • RF

      Richard F.

      5 7 2018 19:57

      3       0

      A 14 and 21 MA are sufficiently close in period that they won't show much difference. If a MA cross over system is used to enter and exit trades it would be usual to choose two with a greater difference. for example and 8 and 21 period MA for a short term strategy – long when the 8 crosses above the 21 and exit or short when it crosses below. However, you will mostly get chopped to pieces trading a system like that. The use of 3 or 4 MA's like 21, 50 & 200 is common as a general health guide and partly because it is generally believed many large funds look at the longer averages and won't for instance buy if price is below a 200MA.

      Interestingly for some reason Peter showed examples with an 18MA and also had a 1 period MA on the chart, which is really just a proxy for price and in fact mostly obscured the price bars. Why did you use the 1MA Peter?

  • EL

    Elizabeth L.

    5 7 2018 16:56

    0       0

    Thanks Peter, very helpful

  • RP

    Reinaldo P.

    5 7 2018 13:13

    2       0

    Thanks Peter, I understand you spot your trade opportunities mainly on a weekly time frame, so do you suggest a lower time frame for following up your winners? Thanks in advanced!

  • KJ

    Kulbir J.

    5 7 2018 12:19

    12       1

    Love Peter, He's great