The Trading Methods of W. D. Gann
Arcanum Market Research
Our “W. D. GANN: MAGIC IN THE MARKETS” Training has been presented in-person in the past. Due to the global COVID-19 lockdown, we are extending an online option through early 2022. For details and special registration procedures CLICK HERE. Do you have a serious interest in “Magic In The Markets?” Contact us to arrange a visual “virtual-tour” of the training via Skype. The tour is interactive and visual. You can see how each technique is calculated and applied, and then walk through the strength of the back-testing. Plus you can ask all the questions you want.
Serious inquiries can also reach us by email or phone at: email@example.com or 312-532-2116 11am – 4:30pm CST M-F.
Following are the answers to some of the most frequently asked about W. D. Gann’s trading methods, and our “MAGIC IN THE MARKETS” Training. As this entire website is designed to save us time on the phone, the detailed answers below should clear up a lot of the questions you have before calling us.
The real market mechanisms discovered and employed by W. D. Gann bear little resemblance to what he described and illustrated in his books. Most everything commercially available labelled ‘Gann’ is simply a new arrangement of descriptions and diagrams from Gann’s books and courses.
Gann sold his private courses for the equivalent of $60,000 and up in today’s money. He never intended to teach his real trading system in his publicly sold books. He wrote them to draw in more private students and coded a review of his real techniques & strategies to the students he taught privately.
If you have been unsuccessfully trying to decode and trade with methods derived from a face value interpretation of what Gann wrote, it’s far from your fault. Gann never intended anyone to walk away from one of his books with knowledge of how his methods really work. Unless any technique or strategy is built upon the foundation of Gann’s Law of Vibration and the correct vibration of each market, it will always operate inconsistently.
Gann’s unpublished techniques are rule-based and objective. They reduce to precise mathematical formulas and can be back-tested. “Cottage Industry” Gann is usually typified by subjectivity, vagueness, and inconsistency.
The unpublished market methods and strategies Gann really used to trade are objective and rule based so they can be taught and replicated. If you are basing this question on your unsuccessful experience with ‘bad Gann’ (typified by subjective gut-feels, mysterious premises, incomplete rules, and immeasurable & inconsistent results,) please re-read the previous sentence.
Gann’s unpublished methods are hard to find, easier to do. We’ve spent the last 20 years going down over 100 roads for each technique, only to find 1 that works. We have done the hard part so that you can do the easier part.
The modern quant trader, analyst, or programmer will find the constants Gann used in his math and formulas refreshing. From my background in electronic institutional trading, rarely do trading programs employ constants. Quant formulas usually involve a lagging measure of past price action or volatility in order to populate future variables. This means W. D. Gann’s formulas and market techniques are truly objective. You can draw out cycles or trend predictions years in advance.
If you have invested in a hoax for years, the methods taught in ‘Magic’ will be unable to provide the key to fix your ‘broken Gann.’ You need to scrap that stuff and learn the real thing.
A warning to “tinkerers.” If you plan to use Gann to spend all your time golfing except for the one morning Gann tells you in advance the market will go up 100 points, then go back to golfing- keep dreaming. If you plan do take the training just to further your research that’s fine- ‘Magic’ will give you the key to build your research on Gann’s Law of Vibration so you can take it to new levels.
If you just want to find once-in-a-lifetime buys at the extreme low price, like Ford at $1 in 2008, Dogecoin at $.01 in January 2021, McDonalds at $12 in 2003, or Bitcoin at pennies in the teens, you can do that without Gann. Just use your common sense. But if you want to scale up that experience into consistent market participation, you will need Gann for that.
Read more details about ‘Magic’ and Gann’s methods.
Trading professionals in Chicago were the first ones to take “W. D. Gann: Magic In The Markets” through word of mouth in the industry over 8 years ago. That early interest catalyzed the foundation for the larger volume of Gann’s methods and strategies that comprise the training and manual today. Industry professionals still make up a large part of our alum today.
Recently, we’ve seen a new breed of industry professionals looking to go beyond the limits of contemporary current market analysis. Since real Gann can lead the market and not be duplicated, many open to the fact that real Gann is different.
The constants in Gann’s system, objective rule-based approach, consistently higher edges, and organic market strategies in Gann’s discoveries are enabling more and more trading professionals to hurdle the old stereotypes.
Obviously, Gann Aficionados comprise a large portion of ‘Magic’ alum. Like some of you reading this, there are those bitten by the Gann bug who would be embarrassed to tell anyone how much time and money they wasted chasing rabbits before they took ‘Magic.’ There’s few things more satisfying than to have played a part in culminating that journey for so many.
Others have taken the training for reasons other than trading. Some are wealthy individuals who feel gaining this knowledge makes them more informed and less fearful about the global marketplace. Others have been esoteric researchers who take ‘Magic’ to enhance their knowledge base. Others still are analysts in search of an unrivaled edge in predicting the markets.
We believe many of the individual strategies or techniques in “Magic In The Markets” is alone worth more than the price of the training.
We get asked all the time if we can separate one strategy or technique out for a cheaper price. The way we look at it, just one of these techniques or strategies is worth the price of the training (especially if you compare it to everything else commercially available, most of which failing to be rule-based and objective.)
But all of Gann’s methods and strategies and intertwined by the foundation of his “Law of Vibration.” Some build on others. So that is why we present all of them together. While any one technique or strategy may be worth the price of “Magic,” you will need to learn several methods to use any one.
Look at our back-testing in this context. My market mentor founded a trading company here in Chicago and sold it for over $30 million. Tens of millions of shares were often employed each day in its use- and someone found that edge to be worth $30 million. But it guaranteed only 1 penny a day profit (though it often produced more.) In contrast, as we have tested it, Gann’s Mechanical Method only produced 1 losing month in 4 years, with some months churning out hundreds of points.
All the time we are asked, “so there’s 93% 3-to-1 reward-to-risk trades with your Gann, right? Let’s stop and think for a sec. If the price of my mentor’s software that guaranteed just 1 penny a day sold for $30 million, what do you think a simple (because it should take a few seconds, right?) strategy giving 93% profitability with 3-to-1 trades on any market you want any time you want would be priced at?
‘Magic In The Markets” is geared toward the consistently active market professional, who’s larger capital can more naturally take advantage of consistent bite-size gains instead of occasional homeruns. Here’s the rub: unless you approach the market in the same way, you probably won’t do well over the long haul. Looking for a cheap trading education geared to part time trading is destined to be a waste of money on the outset.
Speaking of the lore of what market strategies for sale on the internet should produce, how many trading courses out there contain objective, rule-based formulas? How about back-testing? Even if the trader shows you a million dollars he or she made last year, can you replicate that? we know these traders are telling the truth about their earnings. But we’ve also seen many do it with a gut feel that, for many, seems impossible to duplicate. Even for many paying thousands to trade along side them.
The main reason ‘Magic’ is underpriced is for Gann Aficionados. So many have wasted years of their life and thousands of dollars on ‘broken Gann.’ The 20 years of research by a market professional and the entire catalogue of W. D. Gann’s methods provide the foundation for the price. We keep it close so that the many victims of the “Gann cottage industry” can get some closure on their Gann journey by seeing what he really did.
VIEW OUTLINE OF TRAINING . Before the 4-day training sessions we also have live, interactive preparatory webinars and consultations before the 4-day training sessions to help you hit the ground running.
Those who have the most success with ‘Magic’ are active traders with adequate capital who already have an organized approach to the market. Reducing risk & drawdown, achieving greater consistency, filtering out bad trades, better timing, precise pricing, and organizing their approach are all common ways trading professionals benefit from ‘Magic.’
Future traders wanting to get right foot and build their market philosophy, trading style, on the proper foundation of how the market really works benefit avoid wasting years and thousands of dollars on faulty, incomplete, and inconsistent methodologies. If you are in this camp, you also must realize that learning the basics of the market AND Gann’s unpublished methods involving data exogenous to the market will require more mental acumen than an established trader.
With the exception of Earik Beann’s “Handbook of Market Esoterica,” everything commercially available will be worthless in preparing you for “W. D. Gann: magic In The Markets.” It may even screw you up. Even very expensive books and course will not aid in preparation.
There are a few books on Gann’s recommended reading lust we can submit that will help you become familiar with some of the more intricate concepts in the training. These are helpful but far from necessary.
No for many reasons, but we used to. First, let’s say you wanted 7 days worth of ‘predictions,’ even though you are clueless about what you just asked. Now let’s say it was bang on all 7 days…even though the back-testing came in at 80%. Judging the results by these 7 days would be just as dishonest as if whatever you asked for triggered all 7 days but worked none of them.
W. D. Gann was a professional trader, and his strategies and methods are geared for today’s professional trader. Market professionals judge success and suitability of a market strategy based on back-testing over a long period of time in several market conditions. They look for rate of success, but also look for qualities like drawdown, trade efficiency, and simplicity being consistent over time. That’s why we keep extensive back-testing on strategies as well as the function of individual techniques.
Many of the techniques and strategies in Gann’s arsenal employ a larger timeframe. Some let the market dictate the timeframe. So giving these signals in advance would seem awkward and schizophrenic if you are unaware of the underlying principles.
Another example. In the Soybean mechanical system, Gann used a certain squaring technique in an odd way to predict pullback prices. He then used the framing parameters of the Mechanical method to establish certain “time periods.” Finally, Gann set an expiration time for each price projection based on his proprietary use of these “time periods.” Trying to communicate, explain or gauge all that in one prediction is impossible. Gann measured and gauged the success of the system that organized those techniques over a much longer time.
Also, besides our work with the trading methods of W. D. Gann, we are consultants to market professionals here in Chicago. Around the shutdown of 2020, we had a rare chance to trade consistently. Since last year however, we have gotten to the point where we rarely have time to trade, especially consistently.
Let’s keep going on this question, because it opens a pleasant can of worms. On our “MORE ABOUT” page we describe how the “Magic In The markets” training can be broken down into 2 parts. First, rule-based strategies and stand-alone techniques that are ready to trade out of the box. Second are rule-based techniques which Gann used to compliment his strategies and combine with other techniques from time-to-time. But he refrained from showing them functions in a trading system. These have a particular use and fail to trigger some days. An example might be the market making a bottom formation into a price prediction box one day. Unless you know how Gann intended the techniques to be used and when it triggers, predicting it in advance would be useless.
And because this is a great question that opens the door for us to define a couple things when it comes to what Gann really did, let’s add a final paragraph. Some of the individual techniques are difficult to back-test because everyone looks to use them in a different way. Fors instance, let’s take turn times, or the most likely time a market should bottom.
According to Gann, the market must be making a new outside move into one of these times in order for the turn time to be considered “active.” if it does, what is the “orb” or error acceptable to you? 2 minutes? 4 minutes? 7? It differs for each person. When the market turns up from this bottom time, how far are you looking for it to bounce? 5 points? 10? 20? LOD? The truth is that Gann used these times in context of his others techniques. You would look for the market to only bounce slightly off a bottom in a zone where Gann’s Arcana predicted a down-trend. But you might hold until day’s end from a bottom occurring during an “up” zone.
W. D. calculated and implemented these methods by hand. You can too and implement on any software. Most calculations can be done by hand in under 1 minute. Drawing out a monthly or annual cycle may take up to 1 hour by hand. A spreadsheet can also increase accuracy and decrease time.
Wave59 is uniquely designed from the ground up around the way Gann drew out charts and the ephemeris by hand. It packages 2 to 3 steps of the process, so you can focus on applying the technique quickly. This is immensely helpful in the stage where you first learn Gann’s trading techniques and want to hit the ground running.
We provide Gann’s LOV software for projecting high and low prices in an Excel frame for speed. We further include chart templates and proprietary indicators with open code on Excel, EFS, and Wave59 Qscript.
Solarfire and Optuma are unable to do the progressions necessary for Arcana and a couple other techniques. This is because Solarfire is set up so that all progressions must start from natal. Gann did it another way that Wave59 is uniquely designed from the ground up around. It is the same way Gann drew out charts and the ephemeris by hand. Wave59 packages 2 to 3 steps of the process, so you can focus on applying the technique quickly. This is immensely helpful in the stage where you first learn Gann’s trading techniques and want to hit the ground running.
In our community of alum there are a few people you will have access to that have spread-sheeted as well as automated some techniques in Wave59, Esignal, Tradestation, Ninja, and Optuma. They proved automation can be done with much of Gann. (Note: we are far from guaranteeing these individuals with impart their knowledge if you take the course, especially for free.)
Intraday, intraweek, intramonth, annual, and 2.5 years are all timeframes we have worked out Gann’s methods on for most markets. Some strategies, such as the “’Mechanical method,’ allow a runner lot to keep going until it reaches an out signal.
W. D. Gann discovered that each technique or strategy worked in a particular way, on a particular market, and a particular time frame. Gann confined his trading to the one specific market and time frame that the technique he was using worked on. In his “Stock Market Course,” over 85% of the trading results are displayed in one stock: US Steel, which was the market leader in volume and liquidity in that time as AAPL is today. Those trading results he displayed are grouped according to intraweek, and annual. This was all part of his objective, rule-based approach.
Each technique and strategy in ‘Magic’ find its own sweet spot on a particular market and time frame. We rank these matches in order of which perform best. Some techniques only work on a select group of markets and timeframes. For instance, we have the alternating cycles operating at a high level on the SP 500 futures in intraweek, month, year, and longer. But these results are being duplicated on any other market at this time.
The first step is to identify the market and time frame you are looking to trade in. If you want to hop haphazardly between markets and timeframes, it will be difficult for any trading strategy to benefit you.
Arcanum Market Research is one of the only we know to offer so many tested Gann techniques and strategies on an intraday level. But in doing so, the last thing we are trying to do is push people toward intraday trading. If you already trade intraday or are looking to make that their focus, you will be a kid in a candy store. If your focus is longer, then we will have a whole array of other techniques and strategies for your time frame and market.
Many of our clients are under mandate to interact with certain markets in a certain timeframe. These mandates are shared with their investors and regulators alike. For them, we locate the best ranking technique and approach, or methods that will integrate with their present approach and analysis to reduce risk & drawdown, pinpoint entries, better timing, and so forth.
W. D. GANN: MAGIC IN THE MARKETS
Futures, Equities, and Options trading/investing has large potential rewards, but also large potential risk and is not suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in the equities, futures and options markets. Do not trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those W. D. Gann claimed or anything shown on this website. The past performance of any trading method, strategy, or technical analysis technique, system or methodology is not necessarily indicative of future results. No one associated with this seminar or Tradingwdgann.com are Registered Investment Advisors, Commodity Trading Advisors, or certified, registered, affiliated or approved in in any way with either the National Futures Association, Securities and Exchange Commission, Commodities Futures Trading Commission, or any other organization.
The “Magic In The Markets” course exegetes and replicates, as accurately as possible, the original technical analysis, strategies, and market techniques of the late W. D. Gann; and not necessarily the exact trading methods of course presenter or any other individual or entity. You may not be able to duplicate the results of W. D. Gann for many reasons, including, but not limited to, skill of the individual and the changes in financial markets since Gann wrote about them. Recipients of this course receive hypothetical, back–tested data and not actual trading results. Technical analysis, indicators, strategies, and market techniques, including any descriptions or evaluations of their performance, included in this course and displayed on this website, are described and evaluated based on hypothetical back-testing, and not the actual trades or earnings of any individual or entity. Course includes far more applications to market instruments and time frames than the presenter can possibly implement. Course author & presenter has sources of income in addition to his work with financial markets. In any and all descriptions of this course, or any information displayed on this website, no individual or entity, including past clients or course presenter, “hold themselves out” as achieving any level of success trading or amassing any level of wealth or income derived from any course offered on this website or any or all of the information displayed on this website.
“Magic In The Markets” teaches the individual technical analysis, market methods, strategies, and indicators we believe W. D. Gann used in financial markets, occasionally demonstrated by showing different ways Gann combined them to work together. Neither These combinations, nor anything displayed on this website or offered in any course on this website constitute a “futures trading system” or a “stock trading system.” Nothing shown or described on this website should be taken as any individual or entity claiming, inferring, or insinuating, investment advice in any way. No one associated with course or this website accurately verifies or tracks results of past clients.
CFTC RULE 4.41
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.