Dear Fellow Trader,
I am a trader, not a copywriter, so this letter will lack the pizzazz used in typical promotions But I do hope that what may be missing as quality of copy may be amply compensated by the sincerity of my explanation and the experience with the development of the Alpha Trading System for Day Trading the S&P 500.
The System uses some idea outlined in my books co-written by my son Paul A. Alvim. Almost three years ago I identified an unusual trigger signal that is both extremely reliable and timely. I never saw it mentioned while day treading the S&P 500. I do admit that other traders may be using it as I do not pretend to be the smartest trader around. But it may be that if anyone else is using it, they do not want to spread the secret.
It is not a black box. There are no calculations like you see in the $3,000 systems. It does not use Fibonacci rations. It is not a system you can trade five minutes per day or while you go fishing or boating. It is not software you load into your computer that spits out all those "profitable" trades. It does not show back testing because it is not a mechanical system since the traders make the decisions, not the computer.
So, if you prefer to make money the lazy way, you should stop right here because this is not a system for you. After trading the markets for more than 30 years, I still have not found the easy way. And quite frankly I do not want to: I believe in the work ethic and I want to feel I deserve the money when I make it.
On the other side, this is a system that lets you make a profession out of Day Trading. As such it requires discipline, dedications and perseverance. It requires a real-time feed and a charting package (I use Signal and Metastock RT 4.5 for DOS but it will work with CQG, Trade Station, etc.) It helps a lot to have a printer if you want to develop your education. And it requires your involvement since you must watch the screen regularly while you trade because you will make the decisions. If you use it and run trading like a business should be, you will make very good money.
So this trading system is not for the laid back trader, if there is actually such a thing. In exchange, it offers:
- Excellent opportunities
- The ability to trade during a day or week and skip trading for the next two (but your bottom line will suffer);
- The satisfaction of being a player in the market holding your own against the big names;
- A new start every day, fresh and undaunted by margin calls;
- The best risk-reward that I know of;
- The ability to trade with market orders and very limited stops ($500);
- The possibility to identify when you can double or triple the number of contracts you normally trade;
- The time of day when trading should be avoided;
- The way to go long, or go short, or reversing the trades for maximum profit and lowest risk.
This 5-minute chart, one of more than 50 showed in the 100-plus page report that describes my system, is for August 7, 1996, in principle, not a very good day for day trading. Yet it embodies a profit of 230+250+180+310=970 points for an experienced trader or 250+310=560 for a beginner. this will not happen every day, but there are also more profitable days. That chart is part of a four windows setup I use for trading, always the same setup no matter what the time frame you select.
Unlike any book, report, newsletter or software
promotion letter like those we all receive regularly, I do not
tell you about the gigantic profits in a couple of trades selected
from several years of trading. instead, I take examples from
a single, recent month like August 1996 - the least favorable
trading month of 1996 - and analyze trades in that month only.
This will provide a more honest approach to what my trading
system can do.
Would you believe that the chart above had a potential for $4,850 ($2,800 for the beginner trader) of gross profits? Or that this chart shows the trading signals for profits in excess of 1,100 points? And finally, that the next chart below identifies trades worth 1,240 points using the system rules?
You probably do not but I will show you how to regularly spot
an average of three or sometimes 
more, daily opportunities
for similar trades, although not always with the same profit
potential. And if you use the three-minute charts (my choice),
you may average five trading opportunities per day.
The system can be traded comfortably with $10,000 if you are a beginner or even less if you have experience in trading futures. Due to strict money management rules, it requires modest stops, thus reducing risk. It uses five simple Rules but in reality only Rule 1 is related to the trading decision.
I am so confident of the potential of this trading system that I offer this unusual money-back guarantee as long as you trade daily: Send the printouts of the trades entered showing that you have applied the Rules correctly. If you did and you did not make at least FIVE TIMES the cost of this system trading daily during the first 90 trading days, then I will refund your payment in full as long as you commit not to use my system anymore nor divulge it ever.
The two charts above show what I call a really big day on the upside (August 1) and a really big day on the downside (August 29). I call big days those where there is a big range - more on that in my manual - and a well-defined trend, sometimes preceded by a breakout. Traders can take advantage of this, as explained in Chapter 6, "Maximizing the Profits," by increasing the number of contracts traded and yet trading with lower risk. The month of August 1996 had fewer "big days" (only 5) than July (with 16) or June (with 8) or May (with 15), yet was still very profitable with my system. So the reader now understands why I have selected August for picking our examples: It was the worst (or more precisely, the "less good") month of the last four for the September contract.
One last question needs to be answered. If the system is so good, why do I want to sell it at such a low price? When I embarked on developing the present system, I had in mind the ability of trading on an "as wanted" basis, without the need for following the markets every day, that I could use when I retire (hopefully in 1998). This implied day trading a very liquid contract so I started working on what turned out to be this trading system.
As for the low price of my system in an environment that normally sees upwards of four figures, I also felt that since I did not develop this system with the idea of selling it, I should make it accessible to everybody so price would not become an obstacle. However, I will limit the programs to be sold each month to a very low number.
May you enjoy excellent trading profits!
Respectfully,
Luiz V. Alvim
For more information, please e-mail Luiz Alvim. Or call (713) 914-0489, fax (713) 914-0490.
The CFTC requires displaying the following notice: Hypothetical or simulated performance results have certain limitations unlike an actual performance report. Simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. Simulated trading programs in general are also subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.