Marty Schwartz: Pit Bull and the 10-Day EMA
A champion trader who swapped fundamental analysis for charts and a strict rule: only be long above the 10-day EMA.
Trade a real day like Marty Schwartz
A real market day with the date hidden. Run the checklist on the chart, then buy, sell or stay out: the real candles answer.
Check every point of the list before you decide. Stay out if the setup is not there.
Who they were
Marty Schwartz worked as a securities analyst before becoming a full-time trader. He won the US Investing Championship in the 1980s and was interviewed in Jack Schwager's "Market Wizards".
His autobiography "Pit Bull" (1998) describes his routines, his use of moving averages and how he handled losing streaks.
Principles and rules
1. Charts over opinions
He became consistently profitable only after he stopped relying on fundamental analysis alone.
2. The 10-day EMA
He used the 10-day exponential average as his main filter for being long or not.
3. Cut size after losses
After a loss, trade smaller; get back on track before trading big.
4. Preparation
Do your homework before the market opens.
Key lessons
- A single moving average can be a complete filter.
- Money management protects you from yourself.
- Routine and preparation are part of the edge.
Strategies from this method
How to practise it
The 10-day EMA strategy page has the rule. In Candlemind write ema(close, 10) in My indicators and only take longs above it.
Frequently asked questions
Why is Marty Schwartz called Pit Bull?
It is the title of his autobiography, a nickname for his aggressive and disciplined style.
What moving average did Marty Schwartz use?
The 10-day exponential moving average.
Summaries and paraphrases of public books and interviews, for education. Not investment advice.