Larsson Line for Commodity Companies

Short answer Yes!  Larsson Line can now be used for Gold or Uranium companies too. We are adding a new process to the course, a new channel in the discord and updates in the newsletter. Get it here!

Long answer: 5 years of trying

Since I created the Larsson Line process in 2018, it’s been an undeniable success beyond my wildest dreams for Bitcoin and Tech stocks.

People slowly took notice and over the years we have grown into a network of 1000s of likeminded people, sharing a common toolset and process - extremely powerful in itself.

There’s been one question that has come back again and again over these 5+ years:

“Can I use this for commodities too?”

I didn’t create the original Larsson Line process with that in mind. It was a specific process for assets connected to global technology, not for traditional industries, not for commodities. Commodities behave differently than global tech. While the indicator as such definitely was useful, the process is NOT the right one for a cyclic asset, so in short the answer was always:

“No.”

Take #1 - The Swedish Cheese Slicer

I tried several times to make a different process for commodities. Of course I started by researching what already exists. I quickly found several people claiming they have cracked it, with a simple indicator on the daily candles.

Turns out that is indeed possible. I could easily create an indicator with an entry-exit strategy that generates over 90% profitable trades on Gold, 94% if you only trade the long side. A perfect scalping strategy, or if you will, the Swedish cheese slicer.

Here’s the recipe for that, for free:

1. Wait for extreme trend consistency across both higher and lower timeframes
2. Enter, betting on the same trend direction will continue today as well
3. Cut the position if it doesn’t, for a minimal loss.
   Close the position with a tight, trailing stop loss if it does, for a small profit.

=> There you have a money making machine.

I guess that's what others are marketing.

So all good then? Well, no. 

Not for me

First, I’m not here to “market” anything. I’m trying to build something I want to use myself. Then if others like it too and want to join our network, great. 

And I don’t like a process like that, for a variety of reasons including:

•  I firmly believe that there is no long term future in any system with a feedback loop of a few days. Whatever opportunity might exist today, will soon get eaten up. I want to build a system that I can continue to refine and master for decades. The big money is investing is found over long time periods, not in some quick “algo hack”, because guess what: AI is coming and it's faster than you and me.
• A system like that gets very sensitive to fees and slippage, which means that the process might work for me, but not for another person living in another country, with different exchanges. Similarly, it gets very sensitive to position size, since many fees have a fixed component. Then if you’re rich, it works because the fixed fees as a percentage of the trade is small. But say you’re just starting out as an investor, you’re immediately disadvantaged. If I’m opening my doors and welcoming others, I want investing to be about % with everyone on the same playing field, where only your brain matters. Then it’s much more fun.
•  A system like that can only be operated manually if you make day trading your job, and I don’t want to do that. I think I would get fed up within a year and quit. I want a system that I can use for the long haul that also frees up my time for other stimulating research and activities. And I don’t want to use trading bots. By now I’ve heard too many horror stories of malfunctions and security issues to go that route myself. Too high risk to get a return curve that looks eerily similar to the wellbeing of Nassim Taleb's famous Thanksgiving turkey:

The indicator is similar to the regular Larsson Line but a little more conservative.
Let's look at the results. (Focus on the ratio between Gross Profit and Gross Loss.)

Take 3 - Commodity Companies

Third time's a Charm. Here we cracked it for real. For the commodity companies, like miners:

• Larsson Line v2.51 is shockingly accurate in trend identification for many companies, similar to crypto and tech stocks
• Many of these assets are traded by amateurs to larger extent, similar to crypto
• It is easier to find a fundamental insight or an observation that isn't widely known on the market, compared to the commodity as such which is analyzed by more professionals

In short: It's an easier market, that trends better, and we can use the tools we know.

And if we then combine those findings with the knowledge of which direction the underlying commodity as such appears to be trending, as proxied by the The Larsson Line COMM and some very basic TA, we have a killer.

Above, Larsson Line v2.51 is shown applied to a few commodities companies. This is not the full process because not all companies are this easy. It also needs to be combined with trend insights about the underlying commodity as such and basic TA. But still. Look at this!

There are no guarantees. Perhaps it won’t work in the future, just because it worked up until this point, who knows. But this is what I’m going to use for my own commodities investments going forward. If you want to use it too, I’d love to have you on as a member. If not, no problem, I built it for me, not to market it to you :-) 

Inviting you

As observed earlier, it's powerful to have a network of likeminded friends sharing a common process and toolset. I'd love if you want to join us in this: We:

• add a new course section about commodity companies
• add a new channel in the discord server
• add select commodity companies (rotating) in the newsletter

We do *not* however complicate the picture with everyone having two different indicators, at least not at this stage. It would be a mess. If I modify Larsson Line COMM v.021 to another version, results will change both backwards and forwards, perhaps in trades you're already in. Not acceptable. So let me handle that complication and I'll share any key results with you in the newsletter instead where I feel it's relevant.

Instead you apply the "regular" Larsson Line v2.51 to the underlying companies. So you still use only one indicator, but the process is different than for tech stocks and crypto. This is all be covered in detail in additional course episodes.

The indicator is not the process

For absolute clarity #1: 
The process is NOT the indicator alone. 

The indicator is a tool, which comes free with the course.
A good hammer doesn’t build the house by itself.

We combine the indicator AND the process AND our insights about the market AND technical analysis.
A brain is still required.

Education - not a subscription to “calls”

For absolute clarity #2:
You buy education, the course. The indicator comes along with it for free. As does the process. 

All of those come with perpetual license (ToC exist, things like I’m still alive, tools still exist etc).

For now we also give the weekly newsletter and the discord server access at no extra cost for you, while those are not guaranteed for life.

So right now there is NO subscription fee. It’s a one off payment for education and to join us as a member of likeminded individuals sharing a common toolset and process and interest. It’s not a yearly fee.

This is not a subscription to “calls” or any of the sort.
This is not a subscription to "copy trade" me. 
I sell education with the hope that it becomes useful to you for life.

You must be the captain of your own ship to be successful as an investor. 
There are no shortcuts to that.

Do I need to pay again? 

No. 

You get Everything

For absolute clarity #3: You get all 3 scopes:

• bitcoin and crypto
• tech stocks
• commodity companies

Much of the course is still recorded with tech and crypto in mind. Rather than replacing that for people who join through the commodities track, and then make you pay again when you realize you want it later, you get everything from the beginning.

Same for existing members, no need to pay again, you get this also at no extra cost. Access is already activated automatically for you. 

For new members joining with primarily commodity companies in mind, please:

Use this offer page

Thank you for being here. I hope to be of service to you. // Larsson