DiNapoli Expert – Johann Kruger CA (SA), CFA *

My interest in the markets was ignited in 1995 when Nick Leeson blew up Barings Bank with derivatives traded many miles from the bank’s head office. After completing my training contract as a Chartered Accountant in Cape Town in 1997, I transferred to the London office of PricewaterhouseCoopers to learn all about these “weapons of mass destruction”, as Warren Buffet (who makes extensive use of them) calls them. Little did I know that seven years later I would have a risk management advisory role at a major UK bank, where I was located on the trading floor for the best part of nine years, including throughout the financial crisis and until 2012.

During this time I obtained the CFA designation, which helped my understanding of investment tremendously. However, I found that using fundamental analysis to understand movements in macro-related markets (currencies, fixed income and equity indices) is insufficient if one wants to understand how to make money with manageable risk. Most money managers must run deep stops when entering positions based on fundamental analysis to avoid being stopped out by the present day high volatility levels. Many long only managers don’t even really have pre-defined stops.

On the other side of the spectrum, I saw bank traders trade on “instinct” and institutional information flow. Most of them could not trade their own account, as they must be in the info loop and they do not have a methodical approach.

I figured that somewhere in-between there must be a zone where one can apply fundamental understanding of macro-economy in a manner that limits risk. I tried to make sense of the technical analysis produced by most banks, but that was laughably insufficient. In 2009 I discovered D-levels. After studying the book, I did the standard and advanced seminars with Pieter, and two super-advanced seminars with Joe. It transformed my thinking and finally gave me strong tools to support my sense of market direction based on macro-economics. I have also done seminars on standard techs, just to see what everyone else looks at, but none of them have the power that D-levels has.

D-levels allows one two major benefits
1) a lens through which to judge the bullishness/neutrality/bearishness in a market, to assign a strength of conviction based on how many of Joe’s valuable indicators point in the same direction, and pre-defined high probability entry/exit points.
2) some outstandingly accurate technical trade plans to ensure one can have confidence in making money regularly

On their own, the above are incredibly powerful. However, when fundamental analysis lines up with the D-levels analysis, the results are truly remarkable. So remarkable, in fact, that I quit my high paying City of London job in 2013 to focus all my energy on trading using Joe’s methodology. I trade primarily FX, but also commodities and equity indices.

Each person brings a unique approach to trading the market. Joe’s tools can be used in many different ways by traders with different temperaments. It is an honour to serve as en expert on this forum. It is my aim on this forum to provide input to anyone who has questions both on the basics of Joe’s methodology and in relation to its implementation in profitable trading plans/ideas.

Johann Kruger CA (SA), CFA *

* CA (SA) = Chartered Accountant (South Africa);
CFA = Chartered Financial Analyst designation, the investment management charter