Tuesday, 2 August 2011

Who Is Franz Pick?

No, not John Galt but Franz Pick.

I first heard about Franz Pick back in about 1968. He has a relative in Australia who was part of a group that I used to hang out with in my late teens and early 20's. You can Google his name and read about some of his then theories which have proven to be true. Perhaps his biggest claim to fame is his writing of the obituary of the American Dollar. I remember getting over 4.3 Swiss Francs for every U.S. Dollar back in about 1971. Today, 0.87 cents. You might want to do the exercise of looking at the Gold price in Swiss Francs over the years.

We live in interesting times.

Today's morning in London was great. I have two charts to show you. You can see Flo's trades and the RED additional arrows are extra trades. I've thanked Kiki for getting me back to using automation in my trading. I'm a lot slower since I turned more than 39, and I trade more markets at once. I couldn't do it as effectively fully manual.

Anyone not using an algo is at a distinct disadvantage in today's fast markets ruled by the HFTs. With an algo, I can use their liquidity to my advantage. Yesterday's afternoon in the DAX was awesome. But I could have been hurt without Flo, I must admit, as the volatility was brutal and the action was very fast.


  1. I must admit I don't see the autostrat helping. If you look at Flo's entries they are always worse than what you would normally take. So you're stuck trying to exit with a trade in a poor location comparatively. I have recently started trading mostly based on a 15Min and 5Min chart setup but still watch the Rangebar closely and sometimes use it as an entry improvement. I cannot get any auto strat to be consistently giving me better entries than I can make on a disretionary basis. I do not (day) trade more than 1 market at a time however.

  2. bakrob99, its a matter of configuration. Flo can enter more aggressively or less aggressively. The beauty is that I can back test every type of entry and use what is most profitable. I can also trade 4 markets at a time as Flo is watching them. Overall profitability is greatly increased, especially when I manually manage the trades after entry.