Kenneth Tropin
Ken Tropin was formerly President of John W. Henry. Before that he was President of Dean Witter Futures. Now on his own, he is another successful trader with a Trend Following trading style:
The ability of trend following strategies to succeed depends on two obvious but important assumptions about markets. First, it assumes that price trends occur regularly in markets. While trends do not exist in all markets most of the time, they do exist in most markets some of the time. Secondly, it assumes that trading systems can be created to profit from these trends. The basic trading strategy that all trend followers try to systematize is to "cut losses" and "let profits run". Trend following has had positive returns over a 20 year period because trends occur in virtually all markets some of the time. Trend followers create quantitative models to capture these long term trends while limiting the cost of doing so. These models create an expected return profile similar to being long options. A strategy has a long option profile when the strategy limits downside losses while potentially achieving very large upside returns. For example, trend followers use stop losses to achieve limited downside exposures on their positions.
Ken Tropin, Graham Capital Management
Graham Capital Management White Paper: Trend Following
Official Biography
Ken Tropin is the founder and chairman of Graham Capital Management, L.P. Graham Capital is an alternative investment management company with approximately $4.4 billion in assets under management including over $500 million of proprietary capital. Mr. Tropin developed the majority of the firm's core trading programs and he is additionally responsible for the overall management of the organization, including the investment of its proprietary trading capital. The company is located in Stamford Connecticut and has approximately 80 employees. Prior to founding Graham Capital in 1994, Mr. Tropin was president and chief executive officer of John W. Henry
