Below we have provided details about our lead trader, his trading discipline, and what the compound trading method offers.
About our Lead Trader and Algorithm Co-Developer
- Our lead trader / mentor is a forty-nine-year-young semi-retired family man. He started his first business at seventeen and has been a full time entrepreneur since. His screen handle in our trading platform is curtmelonopoly and his personal Twitter feed handle is @CurtMelonopoly.
- He first started on the market 28 years ago, working for Wall Street titans on promotion and business development teams preparing for and executing investor road shows in advance of IPO’s.
- He has been a trader and investor through the difficult times in the late 80’s and early 90’s, dotcom crash, the great recession of 2008/2009 and more recently in our sideways markets.
- His personal style over the years has evolved from value investor, to swing trader, then day trader and more recently adding algorithmic trading to his repertoire.
- Algorithmic trading (Intelligent Assisted #IA) and development (he readily admits) was born out of necessity to compete in such a way that he could secure a predictable trading edge with the lowest possible risk. More specifically he develops algorithm chart models for testing, trade tests, and works with software engineers to code the chart models for the purpose of “Intelligent Assisted Trading” and not HFT (high frequency trading bots). The first Curtis invented is EPIC the Oil Algorithm.
- He has been instrumental in the inspiration and vital in founding our trading platform. He is committed to a long term role as a lead trader / mentor at Compound Trading, market adviser and algorithmic developer.
- His pursuits have his primary focus toward philanthropic and travel endeavors vs.day-to-day business ownership and micro management. In his words, “My best skill-set does not include day-to-day management in running a company – my best offered skill-sets are algorithmic modeling (which does assist day-traders and investors alike), trader mentoring and market advice as it relates to swing trading and long term investing (market inflection).”
About His Core Disciplines
- Trading alongside our lead trader, you will find his core discipline to be firmly rooted in process driven trading. He focuses on risk-management and trade set-ups that provide “a traders’ edge” using (but simplifying for members) sophisticated conventional charting and algorithm chart modeling (along with #IA Intelligent Assistants and charts). All with a goal toward low risk to reward trading (he looks for 4 to 1 RR).
- His edge is in exploiting short-term technical information that most traders would not have access to and fundamental / conventional trading discipline in detail, detail, detail.
- He regularly runs self trade improvement challenges, more recently two week double a small account challenges and routinely thirty day account challenges.
- He knows that 90% or more daytraders (not swing traders and investors) lose and that most consider a 60% win-rate a good to great record, but he doesn’t buy in to that and does not accept a win rate less than 80% as good.
- You will find him aggressively transparent (he documents for public view and posts to the compound trading blog – even the complete trading room footage is published to the Compound Trading You Tube channel during challenges etc) and as you allow, aggressively committed to seeing every trader in his group “over-the-wall to freedom through mastery of trading“. He is an assertive and relentless trainer, and as you allow he will request your personal trading plan along with your chart set-ups and argument for the set-up. And yes, he reviews and responds to everyone – daily as possible.
- What others say: Read what other real people say about his trading leadership and Agilience Third Party Market Authority Report – Curtis Melonopoly is rated Top 250 Mathematical finance authority, covering also Stock exchanges and Economy of the United States.
- Specific to day trading or short swings you will typically find him in market, sector or VIX trades, normally in ETF’s or ETN’s, for a short period of time and in company equities that have sector momentum, specific chart set-ups or a news catalyst. He avoids risk like the plague. For longer term swings and investing you will find him right at market inflection points that he calls “chewing around the edges” until the trend reversal is confirmed and then he scales in to the trend.
- His goal (specific to starting each compound trading account and not his momentum or swing plays) is to compound his wins at 1% or more per day (what he refers to as compound trading). You will regularly find him starting a small account challenging himself to compounding it over a specific period of time. To learn more on how to build an account from 10k to 1.14MM in 26 months with 1% gains per day in a predictable and low risk way – refer to our compound trading section below.
- He will also trade momentum stocks in the morning (or when news is breaking), specifically when the set-up is unusually attractive (typically tech, commodity related or biotech companies) and he will also swing trade equities when the market is in a predictable uptrend and not at risk.
- He does not regularly trade options (not that he doesn’t). He does (more recently) trade select OTC issues and normally does not trade extended hours (but at times has been known to when unusual opportunity arises).
He will, at any given time, operate a variety of accounts representing compound trading (building small accounts), swing trading, momentum trading (day trading) and algorithm accounts and more. This may or may not include cash accounts, paper trade accounts and various back testing and simulation accounts and shares the P&L and trade entries and exits in a transparent manner to ensure success (or lack therein) of the algos or trade accounts (for the purpose of trader training and program development initiatives).
- His style is best suited to those that treat trading and investing as a serious endeavor whether it be trading part time, swing trading or full time daytrading. Traders that wish to build a portfolio consistently over time for semi or permanent retirement would be well suited as would early stage traders that require an edge in an effort to build a small account in a safe and predictable way.
- His style is also amenable to those that wish to learn more about how indicators in charting provide an edge and more importantly how algorithmic charting / trading can provide an even more refined traders’ edge (process driven trading).
- While the core algorithms are amenable to intra day trading scenarios, our lead trader recently saw the need for a swing trading service among our subscribers and active audience. Every Sunday, he provides a watch-list of stock picks for swing trading setups, perfect for those working full-time.This service now contains watch-lists every week on rotation with a total of up to ninety stocks covered. A live trade set-up alert service is also available on the swing trading platform.
About the Compound Trading Discipline (specifically how our lead trader builds small accounts).
In addition to the regular “double a small account trading challenges”, our lead trader assists traders in learning how to build small accounts using the compounding method of trading.
- “Compound Trading” is best described as a low-risk to reward method of trading stocks that, if deployed and managed in a compound manner (as with compound interest), one can achieve large returns over a relatively short amount of time.
- Even if you do not adopt this method as a discipline, the knowledge gained while learning the technical mechanics of being an expert compound trader will undoubtedly increase your win rate and make you a better trader with momentum plays, swing trading and value investing.
- For example, if you set aside a 10,000 account and trade that account in such a way that your trade provides a 5 to 1 risk reward on a low risk play with say a 20.00 stock then you only need a .20 cent gain to achieve 1%. 1% per day on a 10 k account (or 20% per month technically), if compounded over 26 months turns in to 1.14 million dollars.
- If you can maintain a decently high win-rate then you only need to take one to three trades per day to achieve the desired result.
- One of the most important components is limiting loss. In other words, if you are wanting a .20 – .40 gain for a 1% – 2% gain on a 20.00 stock then you better limit your downside to .5 to .10 cents – a disciplined stop loss method becomes critical.
- This also means that you need to have the right indicators and technical know how to more often than not enter a trade right before it spikes (like seconds or even micro seconds before it spikes). The technical know-how is available and predictable. Many traders ask our lead trader on social media how the heck he knew that a stock would spike literally seconds after or right at his entry… and the answer is simple… he has an edge that many do not have (or fail to use).
- Another important component is liquidity. In other words, sizing in to a trade as your account gets larger can be more difficult (as can chipping out your exit). This is mitigated in a number of ways, primarily through choosing market or sector trades with huge liquidity and also with more frequent trading (instead of 1 or 2 trades a day you may need to trade 6 times a day with less size).
- Many traders often state that you are then risking your whole portfolio. Well no, you are not if you are trading sectors, markets, ETF’s/ETN’s, commodities and the like. These trades don’t have the same volatility (in tight time-frames) as many company equities (especially momentum spikers on news and the like) and they certainly don’t have issues with halts and various other problems such as broker software issues that can miss your stop because of volatility. You also avoid the issue of low-float short term scenarios with pumpers announcing a trade to a room only to exit before the unwitting can, or Federal Reserve (“Fed”) speak or various other geopolitical surprises. The time-frame of your trade is very quick and if the trade doesn’t go your way, you’re out immediately. If executed correctly, your trade should see an immediate pop up (with the 1% needed/.20 cents on a 20.00 equity) or you exit. Algorithmic/indicator trading is about near immediate pops, capturing that pop for a 1-2% gain and exiting quick. And finally, many traders set aside a small amount of their total portfolio to learn this specific discipline – this is another method of limiting risk.
- This method offers:
- A better sleep at night knowing you are in cash daily and not holding overnight.
- A perfect Retirement Plan in a low interest world.
- Just starting out? It is a perfect way to build small accounts and learn the indicators that the best traders in the world utilize.
- Low risk – safe system for large accounts and trades of size.
- Sector derivatives and not an individual company stock:
- No halts
- Less volatility
- No stress with systematized trading. Planned in advance with targets for entry and exit.
Note: As we have alluded to on our overview page, there are several factors which determine the availability of our lead trader. Other traders may step in to “take the lead”, following the same set of core disciplines.