About

Jon Boorman, CMT

I have spent over two decades in global markets, witnessing first-hand some of the most tumultuous periods in financial history. I have worked as a sales trader to hedge funds and institutions, research analyst, prop trader, and buy-side head of desk, trading equities, options, currencies, and futures.

I began my career in 1987 at Schroders PLC in London, just three weeks shy of my 18th birthday. I started out in the back office before becoming a portfolio manager’s assistant in the fund management arm. After showing a particular aptitude and interest in the trading and execution of client portfolios, I later moved up to the trading room where aged 22 I became responsible for Japanese and Far-East Asian trading.

In 1995 I was appointed by Kemper Investments to set-up and manage a trading desk for their international funds, transferring trading from Chicago to London. I finally left the buy side in 1999, joining Lehman Bros, sales-trading European equities to a predominately US client base. It was here that I was first introduced to alpha capture platforms and was instrumental in providing successful trade ideas to hedge fund clients. I was later invited to join Lehman’s proprietary trading desk, trading equities and US/European futures.

After relocating to the US in 2005, I briefly traded for myself and studied and developed trading systems that I continue to use in my work today. I subsequently joined a local broker in Charlotte, NC, focusing on idea generation for hedge fund alpha capture platforms, and developing a technical analysis research product with unrivaled transparency. It was during this time I also qualified as a research analyst and earned the designation of Chartered Market Technician (CMT) from the Market Technicians Association.

In 2013 I launched the Alpha Capture blog where I employ trend following and momentum strategies to generate actionable trade ideas, and engage with traders and investors across the financial community.

11 comments

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Alex Essaian

4/21 at 11:13 am (UTC -5) Link to this comment

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Hi, I enjoy reading your blog. It would be helpful if you do a post on how to begin developing trend following system.
1. Jon Boorman
  
  4/21 at 12:52 pm (UTC -5) Link to this comment
  
  Reply
  
  Thank you, that’s a good idea. In the meantime I would recommend reading any of Michael Covel’s books on the subject and visiting his site http://www.trendfollowing.com. Also for developing trading systems I recommend reading Van Tharp or attending one of his courses at http://www.iitm.com
Newtopips

4/22 at 5:47 pm (UTC -5) Link to this comment

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Jon,
I enjoy your writings. I have been trading for several years part time (full time is a s/w developer job), but I was not able to stick to a method. As you suggested to Alex, I would try to attend Van’s courses. Are there any pointers that you can give or suggestion to attend courses that helps to change one’s psychology or trading methodology.

Thank You! for you wonderful blog.
1. Jon Boorman
  
  4/22 at 7:00 pm (UTC -5) Link to this comment
  
  Reply
  
  Thank you. Reading those books or attending those courses will be a huge help I’m sure. It made me ‘unlearn’ everything I thought I knew. Your methodology should suit your timeframe and personality. Trend following is something that at its most basic level need only take a few minutes outside of market hours. I would also suggest taking a Myers-Briggs personality test to help find out more about yourself and help ascertain what trading style would suit you best.
  1. Newtopips
    
    4/23 at 8:34 am (UTC -5) Link to this comment
    
    Reply
    
    Thanks! Jon. For my personality, I tried reading several books from psychology to trading methodologies, they don’t seem to work. Hence I wanted to attend few days course taught in a physical location. But Van’s location is way far away from my area (I live in Bayarea, CA). Would you know anyone who really help on this around bayarea or in CA around? I will take Myers-Briggs personality test.
    
    I do trend trading for forex and I had pretty good success last year. But this year it was bad as I was not clearly understood when the trend reversed and I lost some. Main problem as with other traders, accepting the loss. And I hope with you pointers, and I turn to be better trader.
    
    Thanks again for reading my comment and replying. Appreciate. Your blog is immensely helpful.
    1. Jon Boorman
      
      4/23 at 8:46 am (UTC -5) Link to this comment
      
      Reply
      
      I don’t know of one in the Bay Area, but online courses may be available, or I would suggest reading some of his and Michael Covel’s books first. There are plenty of online resources available once you start researching.
      1. Newtopips
        
        4/25 at 2:13 pm (UTC -5) Link to this comment
        
        Thanks Jon. Appreciate.
Nick

4/25 at 6:14 am (UTC -5) Link to this comment

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Hi Jon:

I have read Michael Covl’s book: “Trend Following” and also read Van Tharp’s “Trade Your Way to Fianncial Freedom”

I also actively listen to Covel’s podcasts.

How does one go about starting to build a trend following system? Where does one start? I have a couple of years of experience in trading using various indicators, but no consitent results.
Thank you.
1. Jon Boorman
  
  4/25 at 6:54 am (UTC -5) Link to this comment
  
  Reply
  
  You will need a trading platform that has backtesting capabilities so you can start screening and building systems. I personally use trade navigator platinum from http://www.genesisft.com but tradestation is obviously very popular and there are many others. It will depend what you want your platform to do, whether it’s just for charting and testing or you also want to execute trades through it. There is a ton of stuff out there, look through stocks and commodities magazine, do some research online, try to go to a trading expo somewhere where you can view free demo’s and see it in action, take your time to get it right for you. There’s no hurry, the market will still be there when you’re ready.
Nick

4/25 at 10:11 am (UTC -5) Link to this comment

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Thanks Jon. I have ThinkorSwim.
Do you only look @ Moving Average’s? Or are there any other inputs to your system as well?
1. Jon Boorman
  
  4/25 at 12:14 pm (UTC -5) Link to this comment
  
  Reply
  
  Price only determines the trend for me, but MA’s can help give you context for that trend, it’s just a smoothing mechanism. ADX will tell you trend strength, you can also look at other things like volatility, efficiency, nearby support and resistance areas. My futures work is very systematic, the stocks part is more ‘rules-based discretionary.’