Last Updated on 11 September, 2023 by Samuelsson
Nelson Freeburg, editor of Formula Research, is an experienced trader and researcher in the futures, fixed income, cash, and stock markets. After leaving academia to pursue a career in trading, Nelson found a passion for finding clear, precise trading signals through rigorous testing of a wide variety of technical theories. In 1991, Nelson began publishing his findings in Formula Research, allowing him to share his findings with money managers and traders. Nelson’s research and testing has resulted in an impressive array of advanced trading systems.
Rather than relying on subjective chart patterns, Nelson looks for objective signals through an extensive historical database that covers a broad range of traded items. He evaluates these signals based on their clarity, reliability, and efficiency. Additionally, he tests the effectiveness of profit targets, stop orders, and mental stop points to further strengthen the trading systems. Nelson’s research has enabled him to provide professional traders with an effective and reliable tool for trading the financial markets.
Nelson Freeburg was a renowned editor of the stock, bond, and commodity market newsletter, Formula Research. As a research consultant, he assisted institutional money managers in creating customised timing models. Since 1980, Nelson has been an active investor and has given talks globally on his research.
Nelson was an incredibly talented trader and analyst who developed groundbreaking trading models. His most famous models were the Russell Growth and Russell Value models, which he used to great success. To ensure their accuracy and reliability, he tested his models out of sample and used a large sample size. One of his biggest strengths was his focus on reducing drawdown, which allowed him to maximize his profits while minimizing risk. Nelson also pioneered the use of voting systems for trading, which involved overlaying different models to help identify the best trades. This allowed him to make more informed decisions and reduce the amount of risk he was taking. All traders and analysts can learn a lot from Nelson‘s approach. His emphasis on reducing drawdown, testing out of sample, and using voting systems are all incredibly valuable tools that can help any trader or analyst become more successful.
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Nelson’s Pankin Strategy
Nelson’s Pankin Strategy is a powerful mechanical trading system that uses straightforward logic to trade Fidelity Select sector funds and has produced 35 percent annual gains since 1986. To reduce risk, Nelson added defensive tactics and tested the system across multiple portfolios, time frames and signals, resulting in a system that has gained 30 percent a year since 1986 with just 12 percent drawdown. Nelson provides concrete examples of high-return/low-risk strategies for a range of markets and also shares his favorite high-performance trading systems tested on TradeStationTM.
Nelson Freeburg – Mechanical Timing Systems
In this session, Nelson Freeburg, editor of Formula Research, will show you the power of mechanical trading systems and how to build one from the ground up. He will discuss the pitfalls of system design and how to avoid them, such as excessive curve-fitting, by using out-of-sample testing, walk-forward modeling and parameter sensitivity checks. You will get access to a high-performance trading system that incorporates all of these methods and learn how to adapt the system to trade items in a broad variety of markets, including currencies, futures, indices, fixed income and stocks.
Nelson will also demonstrate innovative and highly effective timing methods that can broaden your focus and increase your trading profits while reducing equity drawdown. He will provide concrete applications for a range of markets and present several high-return/low-risk strategies for mutual fund switching, equity and fixed-income. Finally, Nelson will share his favorite high-performance trading systems for stock index futures, T-bonds, metals and foreign exchange.
Nelson Freeburg explains the importance of mechanical timing systems and how they can help you achieve consistent profits and sharper trading. He will discuss the various techniques used to protect against the hazard of over-optimization, as well as innovative and highly effective timing methods, and show you how to apply them to a variety of markets. Nelson will also share his favorite high-performance trading systems for stock index futures, T-bonds, metals and foreign exchange.
Nelson Freeburg will take you through the process of building a mechanical trading system from the ground up. He will discuss the importance of testing and how to perform it using today’s sophisticated workstations and high-performance computers. You will also gain access to a high-performance trading system and learn how to adapt the system to trade items in a broad variety of markets. Finally, Nelson will present several high-return/low-risk strategies for mutual fund switching, equity and fixed-income.
Nelson Freeburg will teach you how to trade the Pankin Sector Fund Strategy for exceptional profits and reduced risk. You will learn how to use a purely mechanical timing formula that has produced 10 percent gains a year since 1986 with strictly controlled risk. Nelson will demonstrate how to add risk-control measures to the original Pankin Strategy and how to simulate it over a wider range of market conditions. He will also show you how to use a filter to confirm Pankin signals and capture every major stock market trend. With this and other defensive measures, you will be able to trade the Pankin Strategy more confidently to achieve aggressive profits with limited risk.
Freeburg, Nelson – Formula Research Newsletter
Sabre Trading Strategy – Volume 1, number 1 from 16 September 1991.