When Derek Frey fell in love with the financial sector, he was
not trading stocks like Apple (NASDAQ:
) or Microsoft (NASDAQ:
). He was a teenager training for the Winter Olympics. "I picked up
a book about trading the markets when I was 15 and was instantly in
love," said Frey, the Founder and Chief Market Strategist of Carnac
Investment Advisors, LLC. "At the time I was training for the
Olympics as a ski racer and I decided that trading would be my
backup plan should Olympic Gold not be in my future."
Frey worked at ski areas, as well as a ski shop, to save up
$3,000 to open his first "real" futures trading account when he
turned 18. "Soon after my 18th birthday I destroyed my knee -- and
with it, my shot on the Olympic team," he said. "So I began trading
my $3K account. My first trade was in cocoa; it made a little over
$600 in less than three days and I thought I was king of the
After his initial win, Frey said that he went through the
"typical cycle" that most traders go through, "which is make a
bunch of money fast and then find all kinds of interesting ways to
give it all back, and then some."
"So like most I had to start over a few times in the beginning,"
Frey admitted. "I traded all through my college years and even the
three seasons I spent as a fisherman in Alaska. I was actually
trading gold options from pay phones on the few stops on land that
we had, as this was before the days of cell phones. We would pull
into port, unload our fish, and then while the boat was fueling up
I would run up to the harbormaster with a roll of quarters and call
my broker from the pay phone and find out how my trades were
Frey's love of the financial sector led him to Denver, Colorado,
where he got a job working at Merrill Lynch, which is now owned by
Bank of America (NYSE:
). He then quickly moved to another firm and became a commodities
broker. "I became a branch manger in only my second year with the
firm, and was then recruited to be the head trader at another firm
in Florida, which ultimately led to me starting my own firm in
2004, that I sold back in 2008," said Frey.
"I then became Senior Market Strategist at
, where I developed a number of trading methods and have since
publicly shown and spoke about at many trading expos."
Frey's next presentation will take place in September at the
Forex & Options Expo
in Las Vegas, Nevada.
"My topic is Market Harmonics, which at first may sound
esoteric, but is anything but," Frey explained. "All my trading is
based on science that is proven in other disciplines and therefore
verifiable by many independent third parties. I spoke about this
topic last year and since then I have developed a few more tools to
compliment the ones we already had."
Frey plans to showcase his new tools at the Forex & Options
Expo with a live trading demonstration.
In 2011, Frey won the
Top Trader Online Trading Competition
using his own tools. Most recently, he founded Carnac Investment
"Carnac Investment Advisors, LLC was formed to offer managed
forex accounts to all levels of investors," said Frey. "We chose to
form the fund as a CTA (Commodity Trading Advisor) rather than a
hedge fund because a CTA offers more transparency to the investor
and allows investors of almost any size.
"CTAs are often open to any investors, unlike hedge funds which
are usually only open to 'accredited investors.' So the Global FX
Harmonics Fund is way for investors to gain access to the forex
markets while enjoying the edge that market harmonics offer while
not having to learn and manage all or even any of it yourself."
Global FX Harmonics is the "main fund that I am starting within
Carnac and is focused solely on forex and typically holds trades
for two hours to two days," Frey added. "It is simply exploiting
the edge that market harmonics and the edge therein offers us.
There is a separate risk matrix that manages the trade size. It is
a 'grey box' in that most functions are automated but humans are
'piloting' the ship that is watching it in real-time, at all times,
and able to override -- if necessary -- as was the case during the
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