“A key characteristic of our trading systems is that they can be “flat,” i.e. they are not always in a given market. The systems can be flat either by having entry stops relatively far from the market, or in some infrequent cases, a system may not generate an order at all. It is also possible for the long-term and medium-term systems to take opposite positions in the same market, where one system takes a long position and the other system takes a short position, typically resulting in a very small net position in such a market. Because of our diversification, risk control, and trend-following techniques, we can expect to make profits whenever markets are trending – particularly over the medium and long term. Under DCMI’s current systems, the one scenario that can cause outright losses is if many markets are displaying flat, choppy patterns simultaneously.”
Dolphin Capital Firm Disclosure
Dolphin Capital is headed by Bartholomew Bacon. Bart formerly worked for Paul Tudor Jones and his brother Louis Bacon. What is the bigger point here? Review the following performance chart looking carefully at all months:
Now compare this chart to the ‘big events’ in Chapter 4 of the book Trend Following. This kind of ‘evidence’ should give the aspiring trend follower confidence. It should also give the aspiring trend following investor confidence.
Mr. Bacon was born on June 3, 1959, in Raleigh, North Carolina. He graduated from the University of North Carolina at Chapel Hill (“UNC-CH”) in May of 1982 with a Bachelor of Arts Degree in Physics. He was awarded numerous honors at UNC-CH including the Chancellor’s Award for the most outstanding senior in Physics and the Chancellor’s Award for the highest grade point average in the Naval ROTC. (He was the only student to earn more than one Chancellor’s Award that year.) After college, he served as an officer in the United States Marine Corps, specializing in Signals Intelligence and Electronic Warfare. He was selected for promotion to the rank of Captain before resigning from the Marine Corps to pursue a Masters of Business Administration at the Wharton School of Business. He graduated from the Wharton MBA program in May of 1988 with a major in Finance. From January to December of 1989 he worked for Tudor Investment Corporation, a CFTC registered CPO and CTA, executing foreign exchange and foreign futures orders and supervising one shift of Tudor’s night desk. From December of 1989 to January of 1991 he worked for Moore Capital Management, Inc. (“Moore”), a CFTC registered CTA, initially executing orders on the night desk, and later assisting Moore’s Systems Trading Group with research and trade execution. In February of 1991, Mr. Bacon joined Commodities Corporation (U.S.A.) N.V. (“CC (U.S.A.)”), a CFTC registered CPO and CTA, in order to develop his own trading methods. He began actual trading for CC (U.S.A.) on September 1, 1991.
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