Richard Davoud Donchian An American businessman of Armenian descent who made outstanding contributions to the field of commodity money management Date of Birth: 09.1905Год Country: USA

1. Early Life and Education
2. Introduction to Finance
3. Wall Street Career
4. Commodity Trading
5. Trend Following Trading System
6. Impact on Commodity Trading
7. Later Career and Recognition
8. Legacy

Early Life and Education

Richard Davoud Donchian was born to Armenian parents Samuel B. Donchian and Armenoui A. Davoud, who had immigrated to the United States from the Ottoman Empire in the 1880s. Richard attended the Hartford Public High School and later the Taft School in Watertown, Connecticut. He graduated from Yale University in 1928 with a degree in economics.

Introduction to Finance

After graduating from Yale, Donchian initially worked in the family business, which sold oriental rugs. However, he developed an interest in financial markets after reading Jesse Livermore's book, "Reminiscences of a Stock Operator." Following the losses he incurred during the 1929 stock market crash, Donchian began studying technical analysis and price history.

Wall Street Career

In 1930, Donchian began his Wall Street career, providing brokerage firms with the popular "Security Pilot" service. He also served as a security analyst for Hemphill, Noyes and Co. while continuing as vice president of Samuel Rug Company. During World War II, Donchian served in the U.S. Army and later as a statistical control inspector for the U.S. Army Air Forces.

Commodity Trading

After the war, Donchian became a private investment and security consultant, which he continued until 1960. In the late 1940s, he became fascinated by commodity markets and futures contracts. He founded Futures, Inc., the first open-end commodity fund based on the principle of diversification.

Trend Following Trading System

Donchian developed rules for trading based on the "trend following" method, which assumes that commodity prices follow long-term bull and bear market trends. He designed and used a trading system that combined Trading Rules, Price Guide, and his weekly Donchian Channel system based on moving averages.

Impact on Commodity Trading

Donchian became known as the "Father of Trend Following Trading" and authored numerous articles on futures and securities. He was a pioneer in promoting the concept of diversification in commodity trading. Some modern trend following systems, such as the Turtle Trading System, are based on his work.

Later Career and Recognition

In 1960, Donchian was appointed Director of Commodity Research for Hayden Stone & Co. LLC. He spent the rest of his career with the firm and its successors, becoming a Senior Vice President. He also began publishing the weekly "Commodity Trend Timing" newsletter, which ran for 19 years and had a weekly circulation of over 10,000. Donchian received the Chartered Financial Analyst (CFA) designation from the University of Virginia in 1963.

Legacy

Donchian was a member of several exchanges and professional associations and was listed in "Who's Who in America." He was recognized for his contributions to the field of commodity trading with the Most Valuable Performer Award in 1983. After his passing in 1993, the Richard Davoud Donchian Foundation was established to support the improvement of children's health.