Wednesday, February 09, 2011

Systems That Outperform Global Markets

Global Markets
Systems That Outperform the Global Markets Long Term Workshop February 9 - 10, 2011

By by Ken Long of the Dr Van Tharp International Institute of Trading Mastery

Can't attend the workshop? Click here for the Dr Van Tharp Home Study Programs

Learn to Spot the Flow of Big Money Quickly! Earn Extra $1,000s Each Day in Your Free Time!

Most people tend do the exact opposite of what big funds do and they pay a price for trading this way. For example, some people will buy a stock after hearing that a fund manager really likes it. However, by the time the retail investors buy it, the fund manager is about ready to sell.

But what if you could detect what the big mutual funds are doing with their money well before they complete their big transactions and jump in ahead of them? If mutual fund managers are buying retail stocks, you’d be able to get into those stocks as they are getting in and profit greatly as their significant purchasing activity drives prices up

Wouldn’t that be a huge advantage over other investors? We’re going to show you exactly how to do that. How? First, by understanding how and where big money flows.

"Very helpful information that gave me a good foundation for putting ETFs into perspective compared to stocks and mutual funds." — M.L.

"Excellent course. It's a pleasure and a luxury to spend six days with Ken and learn from him. Infinite value. — Jan Steensma [referring to two three-day workshops]

Suppose you manage a fund, and you need to move a billion dollars out of retail stocks and into utility stocks. For billion dollar orders, you don’t just click a mouse button. Instead, you work with a large brokerage firm and instruct them with an order that basically says, "You have three days to get rid of this stock. We want at least $998 million for it. If you can get more than that, keep the extra cash as commission." The market then sees a slow movement out of retail stocks. And as that one fund moves out of retail, others may see that action, which then might confirm their beliefs about retail sector weakness, causing them to move out as well. Subsequent flows make the underlying movement even stronger.

The same fund manager may give instructions to use the proceeds of the retail stocks sale to then buy a billion dollar basket of utility stocks over the next five days. As retail stocks were moving down, you might also see utility stocks moving up.

While the major averages may not move that much, big money moves its funds around and shifts the internals of the markets. Now expand your focus beyond domestic equities. Say the Latin American markets are zooming up, oil is building a base or the dollar is in a nice steady trend. There are now clear cut ways for the individual trader to see this happening and to take advantage of it.

You can learn to detect when and where the big money moves. In fact, spotting it quickly can be an important (and highly profitable!) edge for you. Big money tends to move slowly, but you can move quickly. In fact, when you get good at observing the flows of funds, you can start making thousands of dollars each day at your convenience. It’s not that hard. Ken Long, a retired US Army LTC, does it regularly.

And Ken will show you just how he does it in this revamped, exciting workshop that teaches you how to jump in front of the big money (formerly titled ETF 101 Workshop).

Introducing Ken Long, Your Instructor

When Ken Long first attended my Systems Development workshop in the mid 1990s and submitted his objectives to me, I thought to myself, "Someone from the Army is going to apply this material?" Little did I know that Ken Long would not only apply it but he’d become a master of it and one of the best traders I know.

Ken is one of the few people I have met who has a graduate degree in systems design. Because of his training, Ken spots ideas that most people would never think of. For example, when Ken attended our systems workshop and learned about the complex training game we were playing, he developed a procedure for strategizing about the game that I now teach in that workshop. He’s that good!

"Extremely comprehensive ‘top down’ approach to trading. Superbly presented by Ken Long in a very understandable format. I give this course a 10 out of 10. Good job! Ken is clearly a man of great integrity and because of this, he had my trust in the material he was presenting immediately." — T.R.

Ken’s business plan is one that I use as a template for teaching business planning to traders. Again, his work is exemplary.

"It’s been exhilarating! I found Ken to be extremely clear and structured in his explanation and presentation of his systems, beliefs and techniques. Awesome information for traders of any level of expertise." — J.L.S.

Ken is one of our best instructors in part because he treats his trading and teaching as he treats his martial arts, his coaching, and life in general: he pursues excellence to the point of mastery. He’s even working on a management PhD now and has been able to integrate his research into his teaching position at the US Army Staff College and into his trading. Ken is a thinker, philosopher, a tinkerer, and a leader. He applies what he learns faster and gets more done every day than anyone else I know.

He started with mutual funds in the 1990s but has grown over the last ten years into an outstanding big picture thinker, and long term and tactical trader. He has also evolved his strategies over the years and teaches his latest advancements in this workshop. What Ken does today is not that hard. He says that if he learned how to do it, anyone can! Register Now

What Can You Expect To Learn? Ken’s New Course Model

Here’s one example of how Ken has taken my material and applied it (in this case) to help you trade better. In our Blueprint Workshop, we have a few areas of key focus for becoming a great trader: knowing yourself, understanding markets, and using systems. Ken used this Blueprint model to rebuild his previous ETF 101 material into this new workshop. These are the areas he has built the new course around:


• Understand how to use your learning style profile to improve your trading.

• Leverage your trading strengths and minimize your trading challenges.

• Define realistic expectations and learning strategies to help you grow as a trader.

• Learn how to find a Mastermind group and how to benefit from their power.

• Build a business-like operations plan as a commitment to your trading results.

• Develop discipline and consistency through the use of checklists, rehearsals, and debriefings.


• Design an annual passive asset allocation strategy for a hands-off approach using part of your equity.

• Adapt the Elder Triple Screen for a highly reliable system.

• Learn how to place macro-economic trades in a systematic manner.

• Understand an effective weekly trend following strategy that rises faster than the market but gets safely in cash during periods of market risk or declines.

• Take advantage of opportunistic trades with a reliable, mechanical systems approach.


• Learn a market classification model for all market types so you know when to trade—and when to be out of the market.

• Understand a world market model to evaluate the relative performance of different markets because some market somewhere is always doing well.

• Appreciate longer term technical indicators for their help in identifying market trends outside of the noise.

• Learn to spot and profit from currency imbalances—without the risks and learning curve of becoming a currency trader.

• Discover the broad choices available in ETF types and how to use them profitably in trading systems.

Here’s What’s Waiting For You!

Building Your Toolbox

You’ll focus on gathering the information and identifying the tools you need to design and operate your ETF trading strategy. You’ll learn about ETFs, how they are constructed, and how they trade, and why they are so useful to traders. You’ll look at large cap stocks and find out how their similar behavior to ETFs offers you trading opportunities. You’ll also cover the parts of a trading system and how your beliefs and objectives form the basis of effective system design. You’ll identify ETF price actions that indicate where the big money is flowing. This is a core part of most of Ken’s strategies. You’ll also learn essential skills to enhance your trading with concepts like position sizing strategies and portfolio heat. And lastly, you’ll study useful indicators that measure strength of trend and volatility and learn to identify common reversal signals.

Strategies and Tools

Ken reviews a number of trading systems over various time frames. Learn in detail how an ETF system can be traded in a stand-alone mode or be traded as part of a broader portfolio. You’ll examine the specific rules for entry and how to base your decisions off of simple yet robust indicators. Ken goes in depth on the critical yet often overlooked topics of position sizing methods and exit management. Learn the power of position sizing strategies as a risk management tool and how your profits come from your exits. Ken uses case studies to teach the fine points of each strategy. You get to develop your personal ETF strategy using the tools and techniques that fit your objectives and beliefs by working in a small group of like-minded traders.

Putting Your Tools in to Practice

Finally, we put it all together and practice applying the trading strategies. You’ll learn to pick the right strategy and apply it effectively in real world situations through the use of case studies and group work. You’ll learn how to develop your trading and support systems to make your trading decisions much more efficient and save you a lot of time. In addition, you’ll receive group insights on the specifics of your personal ETF strategy.

"Very impressed. Ken over delivered on the course objectives and with a lot of his own real-world experiences, all with a good delivery and sense of humor. I leave feeling I can grow my account better than a market benchmark using a disciplined approach without a lot of weekly time and make a little extra using multiple strategies on ETFs." — D.H.

What Else?

In addition to the money making benefits listed above, there’s another valuable element to this course. You’ll be meeting and networking with like-minded traders and investors from around the world! After the workshop, Ken also provides the means for you to keep up with his ongoing systems development process.

"I gained a sense of how a true professional approaches his craft...I never thought I'd go home with four systems I feel confident about trading right away. But I did!" — Neil Abrams

Ken has developed some of the best trading systems for which I have personally seen trade results. He has developed himself into an outstanding trader and teacher—feedback forms from his workshops continuously have the highest marks. Attend this workshop and study with a true master.

"I really appreciated Ken's honesty, openess and willingness to share. I look forward to communicating with him in the future. His commitment to the craft of trading is amazing." — Jeff Blaser

And as always, you’ll be networking and meeting like-minded traders and investors!

Click here for Dr Van Tharp's International Institute of Trading Mastery Workshop Schedule

Can't attend the workshop? Click here for the Dr Van Tharp Home Study Programs

Click here to Review Dr Van Tharp International Institute of Trading Mastery information and resources.