Pinnacle World
“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett
Stepping Stone
We are trading in Indian Equity since 2007 so moving forward we strongly feel a lackness in documentation of decision making , following single method and test it for every market condition. So we finally landed up a space where we got determined to give a name to our set of predefined rules. Since we are using the trend following system to trade so we were intent to give a name which will give a glimpse of our trading strategies so we chosen first world as “Trend” and since this system has taken us a such a height where we won’t bother about daily price movement , any event or news so we name it Pinnacle as suffix . So here ” Trend Pinnacle™ ” started.
We are the first documented System Traders in India with predefined rules and successful track record.
Have questions about our ” Trend Pinnacle™ ” ? Let’s talk about how we can help you achieve your goals.
Robustness of Trend Pinnacle™
No trading system remains profitable forever due to changing characteristics of the market, even the best trading strategy can stop working. Sometimes, a small modification to the system, such as changing a parameter or basic indicator might solve the problem. However, even if the system is technically robust, it’a always advisable to track its performance and be prepared to stop trading it if it stops working.
Facts of Trend Pinnacle™
There are some important points to mention in respect of ” Trend Pinnacle™ ” that will create a firm faith in this Trading Model. Few of them we represented by Infographics.
MDD – Maximum Draw Down
This is the most important part of whole trading system.
MDD by theoratical definition means A maximum drawdown (MDD) is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown (MDD) is an indicator of downside risk over a specified time period .
So MDD is most toughest part to cross in any trend following system so we find out our system MDD by following same traditional method.
A trader must add his MDD to his Capital to get Gross capital required to trade because that will enable him to constantly trade from same quantity.
“ Trend pinnacle™ “we have defined MDD as 25% of the capital.
Have a look at all real data in respect of Indian Banking Index called banknifty.
| Year | MDD ( No. Of Points) Banknifty |
| 2018 | 350 |
| 2017 | 750 |
| 2016 | 550 |
| 2015 | 760 |
| 2014 | 340 |
| 2013 | 340 |
| 2012 | 263 |
| 2011 | 263 |
| 2010 | 542 |
| 2009 | 960 |
| 2008 | 750 |
| 2007 | 480 |
Savior in Volatility
” Trend Pinnacle™ ” has always saved us from any hyper volatile market scenario keep the number of trade in fixed backet. ” Trend Pinnacle™ ” always kept number of trades below 30 in any random year in more than a decade period.
Below are study of number of trades yearwise.
| 2007 | 25 | 14 | 11 |
| 2008 | 25 | 12 | 13 |
| 2009 | 22 | 10 | 12 |
| 2010 | 21 | 13 | 8 |
| 2011 | 31 | 13 | 18 |
| 2012 | 23 | 13 | 10 |
| 2013 | 22 | 10 | 13 |
| 2014 | 20 | 12 | 8 |
| 2015 | 28 | 16 | 12 |
| 2016 | 25 | 12 | 12 |
| 2017 | 10 | 5 | 5 |
| 2018 | 19 | 9 | 10 |
Performance & Prerequisite To Follow Trend Pinnacle™
| Year | Trades | Mining Trades | Lossing Trades | Percentage | Gross | Net |
| 2018 | 19 | 9 | 10 | 49 | 6836 | 5836 |
| 2017 | 10 | 5 | 5 | 50 | 3386 | 3000 |
| 2016 | 25 | 12 | 13 | 48 | 4760 | 3700 |
| 2015 | 28 | 16 | 12 | 57 | 6630 | 5500 |
| 2014 | 20 | 12 | 8 | 60 | 7691 | 6600 |
| 2013 | 22 | 10 | 13 | 46 | 6689 | 5900 |
| 2012 | 23 | 13 | 10 | 56 | 5960 | 5250 |
| 2011 | 31 | 13 | 18 | 42 | 3070 | 2200 |
| 2010 | 21 | 13 | 8 | 61 | 4290 | 3600 |
| 2009 | 22 | 10 | 12 | 45 | 5735 | 5100 |
| 2008 | 25 | 12 | 13 | 48 | 4250 | 3750 |
| 2007 | 25 | 14 | 11 | 56 | 4070 | 3500 |
- Make all decision emotion less, minimize human intervention.
- Mentally ready to take Draw down and follow all rules diligently.
- Learn to stay out and sit idle.
- Let the profit run
Pinnacle Challenges
Empirical Decision-Making Required
When determining trends, there is always an empirical element to consider: the duration of the historic trend. For example, the time frame could be for the past 20 days or for the past five years, so the developer must determine which one is best for the system. Other factors to be determined are the average highs and lows in breakout systems.
Extreme Volatility May Occur
Occasionally, trend-following systems may experience some extreme volatility, but the trader must stick with his or her system. The inability to do so will result in assured failure.
Whipsaw Effect
Among the market forces that are harmful to the success of trend-following systems, this is one of the most common. The whipsaw effect when the moving average generates a false signal – that is, when the average drops just into range, then suddenly reverses direction. This can lead to massive losses unless effective stops and risk management techniques are employed.
Sideways Markets
Trend-following systems are, by nature, capable of making money only in markets that actually do trend. However, markets also move sideways, staying within a certain range for an extended period of time.
Features of Trend Pinnacle™
01
Consistent Profits
” Trend Pinnacle™ ” does not depend on a bull or bear market. It follows trends to the end. No matter how ridiculous trends might appear early and no matter how insanely extended they might appear at the end, follow trends. Why? They always go farther than anyone expects. Ignore momentum at your peril.
02
No more buy and hold, analysts, or news
” Trend Pinnacle™ ” decision-making doesn’t involve discretion, guesses, gut feelings, or hunches. It’s not buy and hope. It doesn’t involve passive indexing, in and out trading, or fundamental analysis. No more 24-hour news cycles, daily turbulence, or sensational hype. No black boxes or magic formulas either. Let go of the Holy Grails.
03
Ride The Trend
Trends exist everywhere, always coming and always going. Markets are no different: They trend up and down. That said, no one can predict a market trend, you can only react to one. ” Trend Pinnacle™ ” never anticipates the beginning or end of a trend. It only acts when the trend changes. There is no need to figure out why a market is trending, just follow it. You don’t need to understand how exactly a car engine functions in order to drive it.
04
The big money of letting profits run
” Trend Pinnacle™ ” at its best aims to compound absolute returns. It doesn’t shoot for average. The goal is to make the knock your socks off returns, not passbook savings interest. ” Trend Pinnacle™ ” also has the unique ability to lie and wait for targets of opportunity. That means killing it on unpredictable surprises.
05
Protect your Home Turf
” Trend Pinnacle™ ” always has defined exit protocols to control injury to your account. Stop losses and proper leverage usage are standard practice. ” Trend Pinnacle™ ” also has low to negative correlations with most other investment opportunities.
06
Takes advantage of mass psychology
” Trend Pinnacle™ ” takes advantage of panicky sheep behavior. Strict discipline minimizes behavioral biases. It solves the eagerness to realize gains and reluctance to crystallize losses. Too many people believe what pleases them. Most behaviors are simply driven by the impulsive moment of now. ” Trend Pinnacle™ ” wins because of that.
07
Scientific approach to trading
” Trend Pinnacle™ ” doesn’t require a belief, but rather it relies on unwavering scientific principles. It has a defined edge which can be statistically backtested and proven. Be the casino, not the hapless player. ” Trend Pinnacle™ ” uses rigid rules rooted in numbers. Think process not outcome. Remember, frequency of correctness is not the issue, the magnitude of correctness matters. Winning percentage means zilch.
08
Strong Track Record
” Trend Pinnacle™ ” is adaptable to differing climates and environments performing best during periods of rising volatility and uncertainty. The unknown will happen again. Are you ready? Ride the storm out and stay alive. ” Trend Pinnacle™ ” is robust.