Peter L Brandt has been one of our most popular and inspiring guests on Talking Trading. His passion for trading, his years of wisdom in the markets and his desire to help fellow journeymen made him one of the most delightful and powerful guests I have interviewed.
Why are chart patterns no longer a part of Brandt's trading strategy?
Chart patterns are no longer an essential part of Brandt's trading strategy because they are subject to failure and could morph into another pattern. As charts become "much less reliable" than they were during the 1970s and 1980s, Brandt has switched from trading one- to four-week patterns to trading eight- to 26-week patterns.
Where does Brandt look for asymmetric trades?
Instead, Brandt looks for asymmetric trades where "the perceived upside potential significantly exceeds the required risk." He tends to find these opportunities near an " ice line " — a price area that is difficult to get through but should provide support once it does.
