Best Dressed List -- 2016

25 Jan16

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Preview

Each year at about this time I publish the “Best Dressed List,” showcasing the outstanding examples of classical
charting principles from the just-completed year.

The Best Dressed List (BDL) illustrates the types of trading situations Factor LLC seeks in its proprietary
account. These types of trading situations are the main focus of Factor LLC’s trading.

Charting is a very subjective craft. Different chartists often disagree completely in the analysis of the same chart
construction. What might be a bullishly biased chart to me could be just the opposite for another chartist.
Importantly, each chartist needs to know what his or her own sweet spot.

The annual Best Dressed List features those patterns that landed right in the middle of my sweet spot. To
qualify for the Best Dressed List, a market must meet the following criteria:

1. A clearly defined (no doubt about it) classical chart pattern at least 12 weeks in duration on the daily and
weekly charts in a tradable market.
2. A decisive breakout that does not put a reasonable breakout entry into serious harm. Secondary
breakouts are considered when an initial earlier breakout failed.
3. An intermediate trend to the implied target, typically representing a price move of at least 10% to 20% of
the underlying value. I look for patterns that typically reach their targets in a matter of weeks or months.

Whether or not Factor LLC successfully captured the implications of pattern is not a criteria for inclusion (at least
not consciously). In reality, the list is probably biased toward the patterns traded by Factor LLC. The list is
broken down into two sections:

 Best Dressed List 2016

 Promising Best Dressed Charts for 2017

Every year constructing the BDL is different. There have been years when I have had difficulty coming up with
ten or so examples. This past year has been average in the number of quality patterns. There have been some
incredibly well defined patterns with excellent and immediate trends. But there were also a number of quality
patterns with challenging breakouts or pattern completions.

You may be a chartist and completely disagree with my selection. I am perfectly ok if this is the case. No two
chartists agree, just as no two Elliott Wave counters or macro economists agree on things. This disagreement is
what makes a market. So, I admit that my selection of the best technical chart developments in 2016 are biased
toward my way of looking at charts.

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Best Dressed List

Market Pattern(s) Date completed Target(s)

DJTA -- Transport Index 10-month ascending triangle Nov 7 at 8206 9310 met on Dec 7
The advance on Nov 7 completed a well-defined 10-month ascending triangle on the weekly and daily graphs. While the “measured move” target was
9780, as a general rule I will take profits when a previous major high is reached. Accordingly, the target was 9310.
Tactical challenges: None
Lesson: Pay attention when patterns are completed with wide-bodied candlestick bar (hereafter referred to as a “WBB”) – as was the case on both the
daily and weekly charts of DJTA.

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 Market Pattern(s) Date completed Target(s)
USD/CAD 8+ year French curve weekly chart Feb 25 at 1.3537 1.2606 met on Apr 20
3-week pennant daily chart Feb 25 at 1.3537 1.3282 met on Mar 7
The French Curve is a very rare technical development that occurs after a market has undergone an accelerated advance characterized by trendlines
with an increasing angle of attack. As a general rule, the decline following the penetration of the final trendline will equal the move preceding the violation
of the trendline. [See red arrows.] An 8+ year French Curve formed in USDCAD. A 3-week pennant formed right at the final trendline of the French
Curve. The decline on Feb 25 simultaneously violated the final trendline of the French Curve and completed the pennant.
Tactical challenges: None. Trading can be complicated when the French Curve is violated by a straight line thrust. In this case the market paused on the
daily graph to construct a small pennant. A pause at a major trendline or boundary line is very beneficial.
Lesson: Pay very close attention when more than one chart construction is completed simultaneously as was the case in USD/CAD. Often a smaller
daily chart will allow a trader to establish a larger trading size without proportionally increasing risk.

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 Market Pattern(s) Date completed Target(s)
CHF/JPY 5-mo symmetrical triangle Nov 1 at 106.77 112.82 met on Dec 1
The advance in the final days of Oct nicked the upper boundary of the 5-month symmetrical triangle. However, nicking the boundary of a symmetrical
triangle is not a signal in my approach to trading classical patterns. The WBB advance on Nov 1 completed the pattern. The decline on Nov 3 and Nov 9
retested the upper boundary of the triangle but did very little damage to the buy signal.
Tactical challenges: The symmetrical triangle is classified as a “diagonal” pattern in contract to a “horizontal” pattern in which case the breakout
boundary is horizontal or slanted in the direction of an anticipated trend. In my opinion, the penetration of the boundary of a symmetrical triangle has little
or no meaning. Only when the last intermediate high within a symmetrical triangle is penetrated do I take the pattern seriously.
Lesson: The Factor uses a concept known as “the Last Day Rule” or LDR for establishing the risk point on at least a portion of trades. The practice calls
for placing a sell stop on a long position just below the low of the breakout day when more than half of the bar of the breakout day is within the completed
pattern. When more than half of the bar of a breakout day is NOT within the pattern, then the LDR calls for stops to be placed below the low of the last
full bar within the pattern. In the case of CHF/JPY, Oct 27 was the bar used to determine the LDR. The low of Oct 27 was 104.929.

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 Market Pattern(s) Date completed Target(s)
GBP/USD 30-year rectangle quarterly chart Jun 24 (Brexit) Target is retest of 1.0345
12-week rectangle daily chart Oct 3 at 1.2840 1.2272 met on Oct 7
Following the decline to the Jul 6 low the daily graph formed a well-defined 12-week rectangle. The decline on Oct 3 completed this pattern and its target
of 1.2272 was quickly met.
Tactical challenges: Brexit caused market chaos. It would have been very difficult to short the downside breakout on Jun 24 after the market had
collapsed 1000 pips in a matter of hours. Nevertheless, “white knuckle” short sales on a bounce intraday to 1.3900 on Jun 24 would have produced
profits by the end of the trading day. The target of the 30-year rectangle is .7700, but I consider a retest of the 1985 low at 1.0345 to be more realistic.

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 Market Pattern(s) Date completed Target(s)
Copper 10-mo symmetrical triangle Nov 7 at 231.25 270.95 met on Nov 11
The WBB advance above the Jul high on Nov 7 completed a 10-month symmetrical triangle on the weekly and daily charts in Copper. Note that the
advance on Nov 1 cleared the Sep 30 high of 221.90, providing for an anticipatory long position even though the symmetrical triangle had not yet been
completed. Whenever possible I attempt to establish at least a 1/3rd position prior to the completion of a major pattern.
Tactical challenges: The mental challenges facing a discretionary trader are real and substantial. A discretionary trader is often his or her own worst
enemy. This very well would have been the case for many discretionary chart-breakout traders. The completion of the symmetrical triangle on Nov 7
came after a near straight-line advance from 208.45. It is mentally tough to step in and buy a market that has already experienced such a strong move.
Lesson: The best trades are often the hardest trades to execute.

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 Market Pattern(s) Date completed Target(s)
USD/CNY 20-mo ascending triangle Aug 2015 6.8333 met on Nov 14
3-mo bull channel Nov 15, 2015 6.5366 met on Jan 4
15-wk bull wedge Apr 22 at 6.5004 6.5998 met on Jun 15
10-wk bull pennant Oct 10 at 6.7055 6.7690 met on Oct 24
9-mo running wedge Oct 21 at 6.7654 6.9566 met on Dec 16
This Best Dressed entry is actually a series of continuation patterns in a major bull move in USD/CNY (or bear trend in the Chinese Yuan). The Factor
Service correctly called the bottom in the USD/CNY. The completion of the 20-month ascending triangle in 2015 established eventual targets of 6.8333
and then 8.2767 (which remains a long way off). The target 6.5366 of the bull channel completed on Nov 9, 2015 was met on Jan 4. The advance on Apr
22 completed a 15-week bull wedge – the target of 6.5998 was met on Jun 15. Advance on Oct 10 completed a 10-week bull pennant – the target of
6.7690 was quickly met on Oct 24. Finally, the advance on Oct 21 completed a rare 9-month running wedge – the target of 6.9566 was met on Dec 16.
Tactical challenges: From its inception long USD/short CNY was a reverse carry trade. Additionally, the Peoples Bank of China imposed additional fees
on the trade to prevent speculators from profiting from a Yuan devaluation. A number of forex dealers also imposed very restrictive margining on short
USD/CNY positions.
Note: USD/CNY represents the more restrictive “on-shore” Yuan. USD/CNH (not shown) represent the Yuan becoming a global reserve currency.

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 Market Pattern(s) Date completed Target(s)
Soybean Meal 4-mo H&S bottom Apr 11 at 280.1 315.8 met on Apr 20
Half-mast flag Apr 27 at 327.3 376.3 met on May 19
The advance on Apr 11 completed a text-book H&S bottom. My favorite trading patterns are those that are tight and concise and offer no alternative
interpretation than the most obvious. This bottom fell into this category. The range from the low to the high of the pattern was on 7% of the underlying
value. The greater percentage of the underlying value represented by the range of a price pattern the lower the expected reliability. Another item of note
in this pattern was the WBB advance on Apr 8 off the right shoulder low. I consider days such as this within a pattern to be “sign of strength” days that
often indicate a pending completion of the pattern in question. The advance met the initial “measured move” target of 315.8 within days. Near-vertical
moves out of lengthy (10-weeks or longer) and tight patterns most often far outrun the measured-move target. Thus, the four-day flag that formed
starting on Apr 21 had all the indications of a “half-mast” pattern. The advance out of a half-mast flag generally will equal the advance that preceded the
formation of the flag. The half-mast target of 376.3 was met on May 19 – and the advance went on to reach 430.
Tactical challenges: I would much rather exit a strong move too early than too late. Many novice traders are obsessed with “catching the top” of a move.
Comparing trading to American-rules football, I would rather play the game between the 30-yard lines than end-zone to end-zone. If I leave money on
the table – so be it. There is a trading technique I will use to ride a position past a price target – Factor members know it as the three-day-trailing stop
rule (3DTSR). The 3DTSR was triggered on Jun1 at 390. Notice that the price chart completed a H&S top on Jun 21 – and this top led to a near
complete retracement of the Apr through Jun bull trend.

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 Market Pattern(s) Date completed Target(s)
Eurodollars (the 7-year rounding top quarterly graph Aug 3 at 99.14 97.00 unmet
interest rate) 40-month channel Nov 9 at 98.60 97.83 met on Dec 15
For several years the market was obsessed with the idea that global NIRPs (and ZIRPs) could not last – that interest rates would have to increase.
[Remember, an increase in short-term rates equals a decline in Eurodollar prices. Finally in Aug 2016 the monthly chart of Euros rolled over to complete
a massive top. At first the distant contract months did not respond, but finally in Nov the Dec 2018 contract completed a well-defined channel. The target
was met in six weeks.
Tactical challenges: The major trading challenge was the fact that a channel is a “diagonal” chart patterns. Diagonal chart patterns are notoriously
unreliable and subject to morphing. Inset on the monthly chart is the daily chart of the Dec 2018 showing the breakout.

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 Market Pattern(s) Date completed Target(s)
Dec 2018 Eurodollars 39-mo channel Nov 9 at 98.61 97.80 met on Dec 16
GEM8 minus GEU9 Cyclic lows Oct 27 at 24 54.5 met on Dec 15
This entry into the BDL is a spread – and one of only two trades for which the Factor Service expressed a specific recommendation in 2016. Every so
often the market presents a “lay-up” trade that is so logical and obvious as was the case in this trade. The chart on the left shows the rolling spread
between the Euro contract 6th positions in the future [the Euro contract months are Mar, Jun, Sep and Dec] and the contract in the 12th position. The
lower price value – the less expectation for higher short-term (90-day) interest rates. In late Oct/early Nov the month chart of Euros (see section on flat-
price Euros) was forming a major top while at the same time the daily chart of ED6-ED12 was making a cyclic low in an area proving historical support
(left graph). The rolling GE6-G12 spread should eventually trade at +150 and beyond.
Tactical challenges: The major technical problem – especially for new trades – was simply understanding the trade. Trading a calendar spread on a
rolling basis is not an easily grasped trade.

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 Market Pattern(s) Date completed Target(s)
S&Ps 12-wk wedge Nov 9 at 2153 2261 met on Dec 12
The decline from the Aug/Sep high to the Nov low created a very clear bull market wedge pattern. The spike down following the Trump victory
penetrated the lower boundary line of the wedge – but I believe such price action must be ignored as aberrations. The close on Nov 9 soundly confirmed
the completion of the continuation wedge and was a screaming buy signal. The target of 2261 was met less than five weeks later.
Tactical challenges: The huge “Trump” spike down on Nov 9 created havoc for many swing traders and chartists. Some traders struggle with how to
draw chart pattern boundaries when spike lows and highs are present. My solution has always been to ignore prick spikes and outlier events and draw
pattern boundary lines which best define a particular chart construction.

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 Market Pattern(s) Date completed Target(s)
USD/JPY 15-mo H&S top Feb 8 at 115.84 106.21 met on Apr 29
16-wk symmetrical triangle Oct 4 at 102.89 114.95 met on Dec 9
The decline on Feb 8 completed a textbook H&S top on the weekly graph. The daily chart shows that the breakout of the H&S was never seriously
retested. Note that a descending triangle developed as a continuation pattern prior to the attainment of the target at 106.21 in late Apr. The advance in
early Oct completed a 16-week symmetrical triangle bottom. The market entered a 5-week period of chop immediate following the breakout. The WBB
advance on Nov 10 was final confirmation that the symmetrical triangle interpretation was correct.
Tactical challenges: The ”Trump” spike decline on Nov 9 made an easy long side trade nearly impossible. This chart is an excellent example of how
patterns can often look easier after the fact than in real time. In real time I was chopped up in USD/JPY. Nevertheless, inclusion in the annual Best
Dressed List is not conditioned by whether I properly traded the chart construction in focus.

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 Market Pattern(s) Date completed Target(s)
USD/TRY 13-mo rectangle Oct 27 at 3.1128 3.3464 met on Nov 17
The advance in mid-Oct poked its head above the upper boundary of a 13-month rectangle only to drift sideways for a few days and then dip back below
the neckline. Students of the Factor should note several things. First, on the daily graph the Last Day Rule (last full day within the pattern) remained
virgin territory; second, the advances on the daily graph on Oct 27 and Nov 4 confirmed the validity of the rectangle; and, third, throughout the breakout
the weekly chart never made a lower weekly low. The target of the pattern was met in short order.
Tactical challenges: A chart trader must make a tactical decision general to all trades whether to allow a breakout ample room to back-and-fill or to play
breakouts with tight stops, but to be willing to attempt several attempts at an entry. Both are perfectly legitimate approaches – it comes down to personal
preference.

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 Market Pattern(s) Date completed Target(s)
Sugar (Oct) 12-mo H&S bottom Apr 15 at 15.42 18.40 met on Jun 3
13-wk symmetrical triangle Sep 16 at 21.20 23.41 met on Sep 22
The bull market in Sugar that began in the first quarter of 2016 ended a prolonged 4-year bear trend from the 2011 high. The Mar 11, 2016 breakout
stalled after three weeks, then corrected 200 points. For most traders (including me) a 200-point break in Sugar that wipes out the early profit from a
breakout trade is more than I am willing to withstand. Yet, the sweeping weekly chart reversal concluded by the WBB advance on Apr 15 was the
secondary recompletion of the 12-month H&S bottom. The target was met on Jun 3. Following the substantial and sustained Apr – June advance the
Sugar market formed a 13-week symmetrical triangle congestion. The breakout of this triangle on Sep 16 met its target in a matter of days.
Tactical challenges: As also illustrated in several other entries into this year’s Best Dressed List, the initial breakout of a sizable pattern can fail, causing
only minor damage for a trader using aggressive and active trade management. Yet, chart traders need to attempt a second attempt when the conditions
warrant such an action. I must emphasize that I am never willing to go beyond the second attempt. I have adopted a “two strikes and I am out” philosophy
of trading pattern breakouts.

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 Market Pattern(s) Date completed Target(s)
T-Bonds 10-mo sym tri weekly chart and
5-mo H&S daily chart (ZBH) – bottom left Jan 12 at 157-15 164-22 met on Feb 8
4-mo sym tri weekly chart and
4-mo H&S daily chart (ZBU6) – bottom right Jun 3 at 166-25 171-02 met on Jun 16
Of course as of this writing all traders are aware of the massive price collapse of T-Bonds late in 2016, but the bull trend in the first half of 2016 provided
two wonderful examples of classical charting principles. The advance on Jan 12 completed a 10-month symmetrical triangle on the weekly graph and a 5-
month H&S pattern on the daily chart of the Mar contract. The advance on Jun 3 completed a 4-month symmetrical triangle on the weekly chart and a 4-
month H&S on the chart of the Sep contract. Both breakouts met their targets in short order.
Tactical challenges: The volume in T-Bonds is limited to the nearby contract. This means that the daily charts of distant delivery contracts do not fully
display all of the characteristics of a chart pattern shown on the daily continuation graph.

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 Market Pattern(s) Date completed Target(s)
Silver 10-mo H&S bottom Apr 12 at 16.21 18.73 met on Jun 30
then
Jun 3 at 16.44
Silver was my most profitable market in 2016 – all from trading the metal from the long side. This is ironic since my reputation on Twitter has been as a
noted “hater” of Silver. The bull trend to the Jul high evolved in stages.
 The advance in Feb (not listed above) completed a 12-week rounding (or common) bottom on the daily graph
 Following the Feb advance the market drifted sideways for eight weeks, forming an 8-week rectangle on the weekly and daily charts
 The breakout of the rectangle on Apr 12 also completed a 10-month H&S bottom on the weekly chart
 The initial thrust from the H&S bottom fell short of the 1873 target and formed 4-week bearish H&S top on the daily graph
 The decline from the H&S top met its target and retested the neckline of the 10-month H&S bottom
 This retest formed a small 2+ week H&S bottom on the intraday charts (not shown). The completion of this small H&S led directly to the
attainment of the 1873 target
Tactical challenges: The challenge in this market was to remain flexible and open-minded. A trader who became a stubborn bull from the 10-month H&S
bottom would have found the 4-week H&S top to be more than a mild speedbump. A trader who became a stubborn bear from the 4-week H&S top
completed in mid-May would have missed the opportunity to buy the retest of the 10-month H&S bottom.

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 Market Pattern(s) Date completed Target(s)
Natural Gas 7-mo H&S bottom on weekly and daily Jun 2 at 2.487 2.957 met on Jun 29
(NGQ6) charts
The advance on Jun 2 completed a 7-month H&S bottom on the weekly continuation chart and the daily chart of the Aug contract. The target on the Aug
contract of 2.957 was met on Jun 29.
Tactical challenge:
Continuation charts in the futures markets are constructed by plotting one contract month up until a point in time, then the next active month, then the
next and so on. I look at continuation charts that roll in three ways: a.) plots the nearby contract with the most active volume; b.) rolls when the near
contract reaches first notice day; and c.) rolls when the near contract expires. Each of the three can have different looks – and also differ from the chart
of an individual contract month. Continuation charts are useful to gain a perspective for a market – but I use the charts of individual contracts to confirm
the continuation chart. No confirmation, no trade. Also, I use the chart of individual contracts for timing and trade management. Agricultural and energy
markets typically show the biggest differences in chart construction between continuation charts and charts of tradeable contracts.

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 Market Pattern(s) Date completed Target(s)
Logitech (LOGI) 28-mo ascending triangle Jul 25 at 16.59 21.33 met on Aug 15
The advance on Jul 25 completed a 28-month ascending triangle. Note the WBB on greatly expanded volume on Jul 27. I do not pay close attention to
volume in futures markets, but an upside breakout in equities accompanied with volume expansion is an important confirmation. The target we met within
three weeks.

Market Pattern(s) Date completed Target(s)

Ambac Financial (AMBC) 12-mo H&S bottom Jul 18 at 18.09 22.97 met on Nov 14
The advance on Jul 18 completed a 12-month H&S bottom in AMBC. Following a 3-month retest of the neckline, the advance in Nov accompanied by
sharply expanded volume confirmed the H&S interpretation. The target of 22.97 was met on Nov 14.

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 Market Pattern(s) Date completed Target(s)
Beneficial Mutual Bankcorp (BNCL) 29-month continuation H&S Aug 5 at 14.28 17.64 met on Dec 1
The WBB breakout on Aug 5 completed a 29-month continuation pattern on the weekly chart. Notice that the right shoulder was an independent 10-
month rectangle completed simultaneously with the H&S. Following the breakout the market chopped for three months. My own trading tactics do not
fare well with such an extensive retest, but all doubt was erased with the WBB advance into new highs on Nov 9.
Tactical challenges: Note that despite the three month retest of the H&S pattern the Last Day Rule low of 13.91 was not violated.

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Best Dressed List candidates for 2017

A question I ask myself when analyzing charts for a possible trade is this – does the chart and market in question have the potential to become a
member of the Best Dressed List. A number of patterns already completed or under construction are possible candidates for the 2017 list.

Market Pattern(s) Date completed Target(s)

EUR/USD 21-month rectangle

Market Pattern(s) Date completed Target(s)

Canadian Dollar futures 8-month bull channel

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 Market Pattern(s) Date completed Target(s)
Minneapolis Wheat Double bottom on weekly chart
and H&S bottom on daily chart

Market Pattern(s)

Eurodollars (interest rate) 8-year rounding top on quarterly graph

Completed in Jul and Aug 2016, there should

be several excellent continuation patterns by
which to trade Eurodollars from the short side
in the years ahead.

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 Market Pattern(s)

Fastenal (FAST) 5-year rectangle on the monthly graph

Review

What is the point of the annual Best Dressed List? It depends! If you casually view charts in your trading, then this document may be an interesting read, but not much
more. And that is ok. Similarly, if you are a day- or scalp-trader this document will have only passing interest.

But, if you rely primarily on classical charting principles and if your goal is to catch the significant price thrusts, then this document can become a point of reference.

Bank tellers are first trained to recognize the features of real paper currency. Only by being intimately familiar with real currency bills do they then study counterfeit
money. The Best Dressed List is intended to remind chartists (at least classically trained chartists) what real patterns look like.

A study of the Best Dressed List trading situations is a reminder that the most profitable major patterns have several things in common.

 There is no hurry to get aboard prior to the completion of a pattern. It is best to wait until the real move begins (although mature patterns can give an advance
warning). An urge to preposition can often lead to a compulsion to preposition and this can result in getting chopped up and missing the real move when it
comes. Are you familiar with this vicious cycle?
 Breakouts from genuine patterns are typically decisive. While a process of retesting can occur, a well-timed entry is seldom put into a serious loss.
 Even though a market can be oversold or overbought at the point of breakout, there is actually very little risk at entering at the breakout if the pattern is destined
to work
 Moves to a target can be sudden and quick. Patterns that take months to develop can deliver their profits in a matter of days
 As a general rule it is my habit to exit at the target and then avoid any temptation to reenter the same market any time soon. A simple moving average can be
used to stay with a larger trend.

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Factor LLC / Colorado Springs, CO 80920 / www.PeterLBrandt.com / @PeterLBrandt

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 THE FOUR KEY PILLARS OF FACTOR
The Factor Service provides weekly Updates and periodic special Alerts focused on futures and Forex markets. The specific
markets covered by the Factor Service depend upon the markets Peter Brandt is trading or considering to trade in his own
proprietary account. Peter is, first and foremost, a market speculator, as he has been forty years. In a very real sense, the
Factor Service is a real time diary of the speculative endeavors undertaken by Factor LLC for its house account.

The Factor Service is founded on four major pillars or themes:

• Classical charting principles – Peter is widely considered to be one of the foremost authorities on applying classical
charting practices to futures and forex market trading. Peter has proven classical charting to be an outstanding method to
identify trades with an asymmetrical reward to risk profile.

• Active and aggressive risk management -Factor considers risk and trade management to be a far more vital contributor
to outstanding performance than is trade selection. What a trader does with a trade is more important than what trades are
selected. Risk management begins with capital preservation. Factor advocates a wide range of strategies and practices to cut
losses short and allow profits to grow.

• Trading as a business – “The process of Trading” – Too many investors and traders approach market speculation
without the rigorous discipline needed to grow a business. Many traders tend to be haphazard and random in their
speculative operations. Factor advocates for the organized and routine repetition of best practices. Reduced to its minimum
function, trading is a matter of entering orders. A trader is a glorified order enterer. The management of order flow brings
together all pertinent components of market speculation – trade selection, timing, leverage and sizing and risk and trade
management.

• The human aspects of market speculation – The biggest enemy of any professional trader is self. Successful market
speculation is an upstream swim against human nature. Overcoming the emotional pulls of fear, greed and false hope
requires constant vigilance and self-awareness. A theme of the Factor Service is the need for all traders to recognize
themselves as a detriment to their own success.

These four themes are interwoven into the process by which Peter analyzes trades and executes his trading endeavors.

Peter recommends that Factor members NOT trade any of the themes he trades for at least one year, instead just following
his comments on risk management and the human factor. Peter thinks that members should consider Factor membership as
just one more trade -- that most members have easily lost the cost of a one-year membership on many trades. Then, at the
end of one year a member should make one of three determinations:

1. No longer be a member.
2. Continue to be a member and learn from Peter's commentary on what 40+ years has taught him.
3. Continue to be a member and apply one's own trading methodology to trading ideas Peter presents.

Peter NEVER recommends that a member simply follow Peter's trades without applying their own methods and techniques.
Peter soundly believes that trading tactics MUST be developed independently by each trader.

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