This will take only five minutes but it could have a lasting effect on how you view the trading system. Below are answers to the three most frequency asked questions we get from new subscribers. The answers are not just for them, but should be helpful to all who are trading with us.
(1) Trailing Stops vs. Maximum Percentage Gains
It's not so much the signals that make money, it is what we do with the signals. The trailing profit-taking strategy is designed to limit risk while maximizing profits for each signal. It is an algorithmic based formula that starts at maximum risk of -50% that gets lower (risk decreases) as the option rises until it locks in a minimum break-even trade. From there, we ride the trade up, until gains start going the wrong way and if too much of that gain is lost, the stop kicks in.
Sometimes we get stopped on a drawdown before another leg up, but better to lock in gains if they decrease too much than bet the farm that there is more profit ahead.
The trade tables track all of this for you, and Alerts go out whenever a stop is hit. At that point, the trade is in your hands, but the official recommendation is to take profits and exit the trade.
The far right column of each trend table is labeled, "Max option percent." The percentages listed in this column are the best levels that particular trade reached during the life of the trade and it disregards entirely the trailing profit-taking strategy. It is included only to keep track of how well the trade did up to maximum tick. We want to know if our stops are leaving too much on the table.
We realize that many services employ spam e-mail-tactics in an effort to trick their subscribers into thinking that they are receiving a lot for their money. We try to balance the type and amount of content with the bare minimum necessary to trade the system. The most important of e-mails would be those containing instructions on the entries, exits and stops. We do provide periodic market updates and interim alerts (like this one), but not every day and not without good reason.
(3) Track Record
Every time we alter the way we trade the signals we make all previous trade results moot. Sending out historical results generated by outdated trade management makes no sense. The only trades that matter are those under the current rule-based system. We get requests all of the time from "browsers," kicking the Blue Line tires, asking for 3-5 years of trades. Instead, we offer a 30 day free trial. What is more reflective of the trading system, 30 days of real time signals and returns, or, 3-5 years of results from how we used to trade the system?
Speaking of which, I hate free trials, not for monetary reasons at all, but because if you don't have skin in the game, i.e. at least $99 for a month of service, it's too easy to not take the trading system seriously. Put up some money and the psychology is to get your money's worth by paying attention to the updates and alerts, maybe even take, or at least paper trade the signals. At the end of 30 days you are much more likely ot understand the system and make an informed decision on whether you can make money trading it. Nonetheless, we still offer the free trial, marketing is marketing, whether I like it or not.
Ok, the five minutes are up.