Index, Forex and Diversified Trading

using simple mechancial solutions


Brent Penfold trading since 1983
and helping others since 2001!

International Best Seller! Now translated into;
German, Polish, Japanese, Korean and Simplified Chinese.

About



Hi I’m Brent Penfold and welcome again to my web site.

I hope this page gives you a little insight into the background of my services and models.

To begin with I’m a private trader first and foremost and I’ve made this web site,  my daily advisory newsletters, my simple mechanical models and my IndexTrader's real time results available to help those individuals who are looking for what actually works in trading.

And this web site came about by accident.

You see I didn't set out to educate traders.

This web site came into existence in the late 90's only because I took exception to educators who in my opinion were promoting false ideas.

I decided to get myself licensed, set up a web site, make available a simple mechanical model (IndexTrader), personally trade it and make my real time results available to prove I actually traded what I promoted/sold/pushed/marketed etc (or any other adjective the dodgy trader educator does).

My gripe was about the lack of transparency in the industry.

So it became my crusade to help promote openness and 100% transparency in the trader education business.

You can read the whole story here: Story Behind My Web Site

So my governing principle in making available my models and newsletters became, and still is today, that;

I will only make available services I personally trade.

Although I can’t guarantee my newsletters and models will continue to perform into the future as they have in the past I can guarantee,

  • One - That while the newsletters and models are available on my web site you can be assured I am trading them, and 

  • Secondly - When I feel I'm being disadvantaged by too many trader's executing at my levels you can be assured I will remove the particular newsletter/s or model/s from public sale.

In other words, my core philosophy for this web site is 100% transparency.

Pretty simple stuff.

Although it's not a money back guarantee at least you know that I do actually trade what I offer on this site, unlike the majority of Educators and Newsletter Publishers who run trading web sites.  At least no one will be able to accuse me of being a phoney Educator/Promoter! :o)

Wouldn’t it be nice if all trading “Educators” and "System Vendors" actually traded what they teach and sell? I can only wish more people who purport to help private traders begin to make similar commitments like mine and make their real time results available for scrutiny.

And I continue to maintain my web site for a number of very simple reasons.

  • It continues  to place pressure on the trader education business. I hope traders can say to other educators …"if Brent Penfold can demonstrate that he trades what he teaches/sells/promotes….why can’t you?".

  • It’s a good profitable business and allows me to keep my trading profits in my trading account.

  • It keeps me busy. As a mechanical trader I’m usually finished by 9:30am each morning, and

  • It has allowed me to travel. I regularly get invited to present at Trader Expo’s throughout the Asia Pacific region. And I don’t pay to be there like many educators who pay to travel so they can present and promote their businesses.


I’ve now been trading for over 30 years.

I began trading when I joined Bank America as a trainee dealer in December 1983. It was during that month that I became fascinated with the markets.

Now here’s a little history for you market buffs.

Question: In December 1983 which fixed currency was being heavily traded due to it’s imminent float?

Answer: Yep you guessed it ….. the Australian Dollar.

When I joined Bank America Australia’s currency was still fixed and there was heavy speculation that Paul Keating (the then Treasurer of Australia who would later become Prime Minister) would announce the end of Australia’s fixed rate currency regime as part of a macro economic reform package.

As you can image there was heavy trading in the domestic money market as traders were looking to “park” their Aussie Dollars in short term securities. During one week we made over 1 million dollars on the short-term securities desk when 1 million dollars meant something. As you can image after that frantic week I was hooked on the markets!

While I was with Bank America I principally trade Bank Bill Futures and Forward Foreign Exchange.

On my PA (personal account) I traded the SPI®. I first traded the contract in 1986 when the SPI® was four times its current size and back then I used the most sensible and conservative combination of Risk Management and Money Management available to young traders …. my credit card!

After completing my Masters of Commerce degree I left Bank America and ever since have maintained my interest in the markets and trading. During my early trading experiences I suspect (no, I actually know) I committed all sorts of trading sins as I almost achieved a hat trick of account melt downs. On the first occasion I traded my $12,000 account up to over $18,000 before running it down to just under $2,000. I magnificently duplicated that achievement on my second attempt while on my third recapitalisation I managed to achieve a 50% drawdown before giving myself a huge uppercut and quit trading.

Over the years I feel like I have probably seen and researched most trading methodologies available. I’ve lost count of the numerous trading books, systems, seminars and software I’ve purchased.

As I've journeyed along this bumpy trading road I have gained some insights into markets and trading. Some of these insights may sound familiar to you and include:

  • Embrace choice with your eyes wide open! No doubt you're aware there are hundreds of ways to trade the markets so its wise to keep an open mind when developing your own trading plan. And although people will say there are many roads that lead to Rome, make sure the one you travel along does actually arrive in Rome! Validate your methodology and understand Positive Expectancy. 

  • There exists an inverse relationship between profitability and analysis – don’t procrastinate.

  • There exists an inverse relationship between profitability and forecasting – I haven't met many successful Elliott Wave, Gann or Geometry traders.

  • The majority of professional CTA traders use mechanical systems, while the majority of amateur private traders follow discretionary approaches – be careful about which side you choose.

  • The more grandiose your ambitions the quicker your trading demise – avoid Risk of Ruin and get your head around Money Management.

  • Indicator fever is fatal.

  • Price is everything – don’t dilute its power.

  • Looking at an equity curve overlaid over a market chart is easier than revising Statistics 101 - as they say a picture paints a thousand words.

  • If Ginger Megs can’t understand how you trade then start again – it's not rocket science, keep it simple.

  • The process of analysis is “interesting”.

  • The process of trading is “boring”.

  • Too much “interesting” will cost you.

  • “Boring” will reward you.

  • High “pulse” trading is temporary – don’t over trade.

  • Low “pulse” trading is sustainable - keep your trades to a size that makes you indifferent to their outcome.

  • Learn to trade less - sometimes less is more.

  • People obsessed with trading will find it more difficult to achieve success  – work hard in your trading however make sure your “interests” are balanced.

  • No one, not even you believe it or not, knows where the market is heading – throw away your crystal ball.

  • Although there are no real secrets in trading, there are nuggets of gold worth searching for - be prepared to pan through piles of trading books (Van Tharp is a good place to start).

  • The quickest path to trading success is to learn from a “trader” – find a mentor who will allow you to watch them actually trade. There is a reason why the “Master-Tradesman" apprenticeship structure has endured over the centuries.

Well these are just my thoughts and I hope some will resonant with you while the balance may in time.

As I’ve mentioned above I’m a trader first and foremost. Educating others is a secondary role. My newsletters and models represent an accumulation of my trading experience I hope others will enjoy benefiting from as much as I have.

If you have any questions you would like to ask me please fire away an email (see below) and I’ll try to answer them as quickly as possible.

Thank you for visiting my web site.

Successful Money Management






Disclaimer: Active trading carries a high level of risk and may not be suitable for all people. The high degree of leverage provided by futures can work against you as well as work for you. Before deciding to trade you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your risk capital and therefore you should not trade money that you cannot afford to lose. You should be aware of all the risks associated with active trading and seek advice from an independent financial adviser if you have any doubts. Past performance is no assurance of future performance.

Under Chapters 6D and 7 of Australia’s Corporations Act 2001 I am authorised to carry on a financial services business to provide general advice on futures to Australian wholesale clients. Accordingly any opinions, conclusions and or other information expressed by myself do not contain personal advice. Visitors will need to with, or without the assistant of a person licensed to give personal advice, to determine whether any general advice expressed by myself is appropriate for them given their particular needs, financial situation and investment objectives.