Stanley Kroll of Kroll, Dallon & Company is profiled at StreetStories
October 08, 2005
Market Wizards Index: +281%
Compound annual over 3 years
Fund or affiliation
Kroll, Dallon & Company
Methodology
Tehnical trading using long-term trend following, timing entries during pullbacks.
Techniques Employed
The broader the market, like wheat and beans, the more likely it is to have an identifiable major trend.
Kroll pays no attention to any facts, only to market action:
Commodity "fact" is probably fiction.
One does not know if it is complete.
Anything true is already reflected in the market.
Trading Techniques Employed
Kroll’s basic art of commoditity trading:
Wait till a major trend is clearly established, and decide to make a big move.
Put your position in place during periods of correction against that trend.
As the trend develops, Kroll invests more on each correction but with smaller and smaller amounts. (against pyramiding)
When the major trend does change definitively, Kroll liquidate during favorable reactions against the new unfavorable trend. i.e. reverse the procedure.
Never argue with the market, when asked for additional margin, don’t respond, sell out.
You should avoid averaging down in the way, in commodities, the margin can kill you.
Every evening he fills out a large card. He will not change his strategy once written out on the card.
It is hard to establish good positions, and almost impossible to do it quickly.
Philosophy and beliefs
In commodity speculation, you must have no other daytime interests, and do nothing else. You need "undivided concentration".
History and other facts
"Money is made by sitting, not trading." Jesse Livermore.
The average life of a commodities account is about six months.
Used to be at Merrill Lynch for 13 years.
Performance Record
281% over 3 years: "...he had turned $18,000 of his own capital into over a million, and the capital of some 37 quasi-partners... from $646,000 into more than $2.5M [57% c.a.]".
Visit: TurtleTrader.com® Website
Visit: Bestselling "Trend Following" Book
Visit: "The Complete TurtleTrader" Book Review
