Futures trader and author; co-author of The New Technical Trader
Stanley Kroll
Stanley Kroll worked as a commodity specialist at Merrill Lynch and ran his own commodity clearing firm; Stocks & Commodities reported that he turned an $18,000 stake into $1 million during the 1970s. He wrote Kroll on Futures Trading Strategy (Dow Jones-Irwin, 1988) and co-wrote The New Technical Trader (Wiley, 1994) with Tushar Chande, which introduced StochRSI.
What they argue
- Trade only strongly trending markets, because the big wins come from taking part in major bull or bear moves.
- Big profits come from patience and sitting with a winning trend; he liked to quote Jesse Livermore that 'big profits are made by sitting'.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- Kroll on Futures Trading Strategy (1988)
- The New Technical Trader (with Tushar S. Chande) (1994)
Chande Kroll Stop (10, 3, 20)
Rule and full recordBreakouts & channels · daily · with Tushar S. Chande
Two stop lines built from recent highs, lows and average ranges. Be in once the close clears both lines; get out when it falls below the long stop.
Best risk-adjusted results against buy and hold:
Chande & Kroll StochRSI 0.2/0.8
Rule and full recordMean reversion · daily · with Tushar S. Chande
The stochastic formula applied to the 14-day RSI: where today's RSI sits in its own 14-day range. It reaches overbought and oversold far more often than RSI does. Buy out of oversold, sell out of overbought.
Best risk-adjusted results against buy and hold: