Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.


Bill Dunn: 40 Years of Trading and Still Making New Highs

Recommended Posts



“Trading shares many similarities with another past-time I enjoy: strategy games. I love playing chess, and I think trading and chess require a similar set of characteristics to do well — they require that you act thoughtfully, never impulsively.” - Ron Kapar


Name: Bill Dunn

Nationality: American

Occupation: Trader and portfolios manager

Website: Dunncapital.com



Bill spent his childhood in Kansas City and Southern California. He served 3 years with the U.S. Marine Corps. He got his Bachelor’s Degree in Engineering Physics from the University of Kansas in 1960. Then he obtained a Doctorate in Theoretical Physics from Northwestern University.


In the following 2 years, he was a researcher in faculty positions at University of California and Pomona College. He also worked in logistics and operational systems in other areas.


In 1974, Bill founded DUNN Capital Management, a Commodity Trading Advisor (CTA) with a long, rich history of experience and performance. Dunncapital.com states that, with 19 partners contributing a combined $137,000, Dr. Bill officially launched his finance career, trading client money in his 100% systematic managed futures strategy. When a trading opportunity presented itself, it was all or nothing, never hesitating to swing for the home run. He traded only 11 markets at that time, being in an uncharted territory at the time and breaking new ground in an undeveloped alternative asset class.


The firm has a track record that spans over 30 years and has produced a compounded annual rate of return of 14.2% per annum, after all fees and expenses. Their staff are highly experienced and well-educated.


Bill Dunn is now the Chairman Emeritus of DUNN. In January 2010, a business succession plan was put into place that gave Martin H. Bergin partial ownership of the firm. In August 2015, Mr. Bergin became the sole owner of DUNN. This means is Mr. Bergin currently the President and Owner of DUNN.



What You Need to Know:

1. Bill Dunn is a trend follower. He trades what he sees. The benefit of doing this is clear in his track record.


2. Sometimes, he made great profits. Sometimes, he suffered some drawdowns. Such is trading. No matter the level of volatility in his portfolios, he never deviated from his main methodology.


3. For Bill, the markets are his real world. He started just like any one of you. He came across a newsletter while still young, and he was hooked. The rest is a story…


4. He’s a long-term trader, sometimes holding positions for more than a year. He’s computerized his strategy. At least, his background in scientific research and mathematical analysis both in academia as well as in the defense contracting industry has been applied to trading; and successfully. He himself said: I felt there were very definite economic trends that were established from knowledge and the ability to know what events meant. I was looking for a way to participate in [those] major trends when they occurred, even though they were unexpected.”


5. We don’t change our profitable methodologies because of drawdowns. Minor changes might be made to make a good methodology perform better, but that should not interfere with a good trading idea.


6. Bill acknowledges that money management is the true survival key; plus trading without a predefined exit strategy is a recipe for disaster.


Conclusion: Speculation has to do with the unpredictability of the future. Whatever people do have to do with some of forecast which is inherent in the uncertainties of human acts and actions.


This article is ended with a quote from Bill:


“We have not made any changes because of a drawdown. While we have made minor changes since the program started trading in 1974, over the course of the years the basic concepts have never changed. The majority of the trading parameters and the buy and sell signals largely have remained the same.”


Source: http://www.tallinex.com

Share this post

Link to post
Share on other sites

It should be noted that there is significant between ‘trend trading’ and ‘true trend trading’


‘Trend trading’ demands periodic tweaks to systems - entries, risk control, etc. - to minimize drawdowns.


‘True trend trading’ does not. Sizing is everything and outliers are literally the edge.


Hence such a quote from Bill - one of the few profilable ‘true trend traders’ out there - is possible

We have not made any changes because of a drawdown. While we have made minor changes since the program started trading in 1974, over the course of the years the basic concepts have never changed. The majority of the trading parameters and the buy and sell signals largely have remained the same.


A successful ‘trend trader’ cannot say that.


fwiw Since I’m by nature neither a ‘trend trader’ nor a ‘true trend trader’ it took me a long time to realize these things...and even longer to implement (/automate in my case) both ways properly.

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Topics

  • Posts

    • NZDUSD: Retains Recovery Threats, Eyes The 0.6726 Zone NZDUSD: With the pair still retaining its upside pressure on correction, more strength is envisaged in the new week. Support lies at the 0.6650 level. Further  down, the 0.6600 level comes in as the next  downside target. Conversely, resistance resides at the 0.6750 level where a break will aim at the  0.6800 level. A break of here will have to occur to create scope for a run at the 0.6850  level. Further  out, resistance stands at the 0.6900 level. Its daily RSI is bullish and pointing higher suggesting further recovery higher.  All in all,  NZDUSD faces further upside pressure.
    • $BDX (BDX) Becton Dickinson stock narrow range breakout watch, see also $MRK ,

      analysis https://stockconsultant.com/?BDX
    • Meet the Broker in Cyprus Dear Client, The HotForex VIP Contest returns for one more year with exciting rewards for our valued clients!
      Enter the contest to claim monetary prizes from a $10,000 pool!  We are relaunching the HotForex VIP Contest this year too! The lucky 1st Prize Winner and his/her companion will enjoy an all-expenses-paid trip to the beautiful Mediterranean island of Cyprus! 1st Prize > An all-expenses-paid trip to the amazing Mediterranean island of Cyprus, including:
      Two air tickets to Cyprus
      Five-star hotel stay
      Limousine transfers
      One-to-one forex training 2nd Prize > $3,000 3rd Prize > $1,500 4th Prize > $500
      If you have any questions about this or any of the other trading platforms available with HotForex, please do not hesitate to contact our support team, which is available 24/5 in a variety of languages. Kind regards, 
      The HotForex Team
    • Date : 21st September 2018.

      MACRO EVENTS & NEWS OF 21st September 2018.

      FX News Today

      Asian Market Wrap: Stock markets continued to rally during the Asian session after a record close on Wall Street yesterday. Risk appetite is back after robust US data yesterday added to hopes that the fallout from the latest round of US-China tariffs can be contained and that there will eventually be deals on trade and Brexit, despite little progress at the informal EU summit yesterday. Improvements in emerging market assets have also helped to underpin confidence with investors buying back into the rout. 10-year Treasury yields moved up 1.3 bp to 3.076%, 10 year JGB yields jumped 1.6 bp to 0.125% and 30-year yields rose 4.4 bp as BoJ cut bond purchases. Topix and Nikkei are up 1.01% and 1.06% respectively underpinned by a weaker Yen, the Hang Seng has gained 1.13% so far and the CSI 300 is up 1.80%. US stock futures are equally broadly higher, Oil prices are slightly lower and the November WTI future is trading at USD 70.25 per barrel. Today’s calendar includes Eurozone PMI readings as well as public finance data for the UK.

      FX Action: USDJPY has lifted to a fresh two-month high at 112.80 amid a backdrop of a coursing risk-on theme in global markets. The USA30 and USA500 hit record highs yesterday, and Asian stocks have rallied robustly across the board. JP225 hit a 4-month high, and the Shanghai Composite a two-week high, with both showing gains of 1% or more. Expectations for China to turn the fiscal stimulus tap, among other measures, have been helping underpin sentiment in Asia, while the unexpectedly low starting tariff rate of 10% in Trump’s latest move on Chinese imports this week, along with tech sector exemptions, have helped buoy sentiment Global fundamentals are otherwise solid, despite the threat from the trade war escalation (with Beijing not expected to negotiate until after the mid-term elections in the US).

      Charts of the Day

      Main Macro Events Today Eurozone Sep. PMI – Expectations – The Eurozone manufacturing PMI is expected at 54.5, down from 54.6 in the previous month, and expect the services reading to improve slightly to 54.5, which should leave the composite unchanged from August at 54.5. This still suggests ongoing expansion, but would also confirm the decelerating trend. Canada CPI & Retail Sales – Expectations – CPI is expected to hold steady in August after the 0.5% surge in July. The CPI is projected to grow at a 2.9% y/y pace in August, easing slightly from the 3.0% pace in July that was the top of BoC’s 1-3% target range. Canada retail sales values are expected to rise 0.5% in July after the 0.2% drop in June.
      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news.

      Andria Pichidi
      Market Analyst

      Disclaimer: This material is provided as a general marketing communication for information pThis material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • There are many Horrible trading situations occurs in traders life and some are very serious.

Important Information

By using this site, you agree to our Terms of Use.