Critical formulas for Bollinger Band trading - John Bollinger - 056

primarily trade US stocks.

I do occasionally trade some international stocks.

I do occasionally trade some ETFs.

In the past, I was a pretty active bond trader, but I don't do that anymore.

That's largely a function of that long period of zero interest rates that we went through, which stressed bond traders out.

Both the descent into zero interest rates, the period of time in zero, and the climb back out of zero interest rates, all stressed bond traders pretty badly.

Yeah, we're not active in the bond market anymore.

So we're primarily U.S. equities.

We do do some ETFs and we do look for some non-correlated assets in the ETF world as part of our systematic approaches.

and quite a momentum or trend following kind of ethos primarily

but not exclusively um one of the first uh trading systems i ever uh developed uh was a mean reversion system that actually folds into a trend following aspect so um We're primarily momentum, long-term trend following.

The case for U.S. equities is pretty convincing.

You know, somewhere around, with dividends reinvested, somewhere around 10, 11% per year.

per year for the past few

hundred years, 200 years certainly.

In fact, Meb Faber just brought out a new book which analyzes the past 200 years by decades and shows what's happened in the US stock market.

Pretty interesting book.

He comes to the conclusion that you should be a buy and hold person.

I don't come to that same conclusion.

I look at that and say, well, if you could earn 10 or 11 just by sitting around, if you add some active management to that, you ought to be able to double that pretty easily.

And

that's our objective.

And I think, you know, we'll talk about this more.

There are only a couple of things, a couple of ways you can analyze your trading results, the number of winners versus the number of losers, the average size of winners versus the average losers.

So in U.S. equities over the long haul, the odds of success are tilted in your favor.