INTERVIEW CENTRAL: Roy Kelly, Part I

Roy Kelly heads up a trading system development company called ARC Systems that primarily operates on the Trade Station platform. He brings a systems approach to trading based on his numerous years in the systems trading arena. Roy Kelly is also a professional trader, lecturer, and author of the book The Trading Method That Can Make You Rich.

I really enjoyed speaking with long time systems trader Roy Kelly. This is the first installment of that interview.

Optionetics: How did you first become interested in trading the markets?        

Roy: After achieving a measure of success as a businessman I had some extra cash to invest, so I decided to trust a broker to invest in Options.  After around 45 days, all my investment capital was gone.  There and then is when I decided that if I wanted to pursue investing in the markets I would have to take control and really do it myself.  I took a very serious approach, studied very hard and spent thousands of hours working night and day until I came up with some solid methods and indicators to trade the market.  After trading privately for years I met a vendor (a well known individual in the business) and he talked me into teaching and offering my software to others.

Optionetics: Do you ever use options and if so what are your favorite strategies?

Roy: Currently I like the index options. However, I like futures for the fast action. I use my own strategies that I have developed over the years.

Optionetics: What are the things you like best about the trading business?

Roy:  I like the trading business because it gives me freedom; in fact, once you learn how to make money trading, all you need is about one hour a day to be truly successful.

For certain there is money to be made trading; however, trading can be a lonely business and by offering my software to others, and having my work proven time and again to be among the best available, gives me—and I suppose my ego—a feeling of satisfaction and a connection to the business as a whole.

Optionetics: How do you treat losses and how to go about establishing your risk tolerance before the trade is entered?

Roy:  Once you know your win-to-loss ratio, losses are not a difficult thing to deal with.  Once you have a solid trading (business) plan in place—and stick to it—then trading becomes more like any business.  One way that helps with the losses, is to have a fixed stop in place.  That way you are limited to what you will lose on any given trade which provides a measure of peace of mind.

Optionetics: Do you prefer long-term strategies or short-term strategies?

Roy: They work equally well for short term or long term.

Optionetics: Thanks, Roy, for sharing your trading approach with our Optionetics reading audience.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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