Working strategies of Linda Raschke, who is more than 30 years old
Linda Raschke began her professional trading career in 1981 making markets in options as an employee of two exchanges. But the registered CTA (Commodity Trading Advisor) became only in 1992.
Since then, she has been a major trader for several funds and in 2002 opened her own hedge fund, in which she held the position of CPO (commodity pool operator). Linda’s hedge fund ranked 17th out of 4,500 for best five-year performance, based on BarclaysHedge ratings. And her early successes were noted by Jack Schwager in his famous series Market Wizards. Linda retired as CPO and a CTA in 2015. However, she continues to trade daily at her own expense.
In the world of professional trade and money management Linda Raschke stands out from the crowd with three features: performance, durability and consistency.
Although it has been a little less than 30 years since she stopped trading in the hall, the market principles and analysis techniques she developed at the time remain an integral part of her trading today. In fact, some of the tools she now uses, such as “3-10” oscillator, are essentially the same ones she learned from her first mentor over 20 years ago.
Linda says that trading at a higher level required small adjustments, but at low levels everything was according to one system. Relying solely on Quotron (a simple display of price quotes that was common in the 1980s), she successfully traded for 45 weeks. But when she got her first graphical analysis software in 1987, she lost almost all the money within three months.
Linda Raschke’s Strategies
Failures and problems usually do not adorn the history of professional traders, but Linda Raschke is quite wise about past mistakes. She easily admits that at one time went bankrupt during trading on the stock exchange and even today does not always hit the target. Like many traders with trading experience on the trading floor, it focuses on sequence -smaller trades with high probability.
Linda Raschke has a practical approach to trading. Thus, the followers of this method do not leave work after the first torture of professional trade. She states that a trader should still have a permanent job. After all, then it becomes very difficult to trade if the trader is constantly worried about how he will pay the bills.
Linda Raschke says she does not develop or test a complete system for trading as most people believe. On the contrary, in her office there are many laptops, complete statistical models and market trends, large pointers that she uses to make trading decisions at certain points in time. Many of her notebooks contain records of market activity, which she registers manually.
Linda is a co-author of the book “Street Smarts: High Probability Short-term Trading Strategies”, written together with Lawrence A. Connors. She has also been featured in dozens of financial publications, radio and financial television programmes. She also served on the Board of Directors of the Market Technicians Association and was President of the American Association of Professional Technical Analysts.
Linda presented her research and lectured on trading for many globally recognized authorities, including: Association of Managed Futures, American Association of Professional Technical Analysts, International Federation of Technical Analysts, Association of Market Technicians and Bloomberg.