Toby Crabel Video Review # 1

by David Jenyns on April 4, 2008

Video review of "Risk Reduction through Good System Analysis & Diversification"

To watch this video visit InoTv
Rating: 3/5

Toby has the distinction of having one of the lowest daily peak-to-trough drawdown rates of all CTAs in the “$10 million and over” classification since January 1992 (according to CTA Research, Fairfield, Iowa). In this workshop, Toby shows you how he earned this distinction by using a low volatility trading approach.

Toby shows you how to use the power of diversification to lower risk and increase the long-term stability of your futures trading. He describes two working systems from his book “Day Trading with Short Term Price Patterns and Open Range Breakout”. First introduced in 1989, these systems have been updated and tested through the end of 1995. He demonstrates the different elements of system trading, then covers in detail the benefits of diversification, quantifying those benefits with a series of extremely useful statistics.

Most of the academic literature on the commodities futures market glosses over diversification, usually discussing it only as related to hedging or discussing commodities simply as an alternative asset class. Toby discusses a real world application of portfolio diversification that uses commodities futures contracts exclusively. He shows you how to develop a system, how to combine systems into a portfolio approach using diversification to reduce your risk profile and how to test that approach. He discusses the mix of systems and markets using simulations and correlation studies. Finally, Toby shows you exit techniques that effectively reduce slippage. In this session, you will learn how to reduce the risk of your own trading ideas and how to apply those ideas, with minimal risk, to a wide range of markets.

To watch this video visit InoTv


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