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Dear Fellow Trader,
WHAT THIS SYSTEM IS NOT Before I tell you what the system is, please let me tell what the system is not. It is not a black box, because it is fully disclosed. There are no calculations or fancy signs like you see in the $3,000 systems. It does not use Fibonacci ratios. It is not a system you can trade five minutes per day or while fishing or boating. It is not software that you download into your computer. It does not show backtesting because it is not a mechanical system since the trader makes the decisions, not the computer. So if you prefer making money the easy way, you should stop right here because it is not a system for you. After dealing with the markets for more than 40 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. DISCIPLINE AND PERSEVERANCE On the other side, this is a system that lets you make a profession out of Day Trading. It requires a real-time feed and a charting package. (I use TradeStation 6.0 but it will work with MetaStock and CQG, and other ones. It helps to have a printer to develop your education. And you will need to watch the screen be at your PC while trading so that you can make decisions. However, alerts can be used, if that is what you prefer. So this system, which has been available since 1996, is not for the laid back trader, if there is actually such a thing. In exchange it offers:
A STRAIGHT APPROACH Unlike any book, report, newsletter or software promotion letter like those we all receive regularly, we do not tell you about the gigantic profits in a couple of trades from several years ago. No, I didn't pick the best charts, just followed the evolution of the two contracts analyzed since I started the manual (November 16, 2002) and the day I finished it (January 18, 2003). So I use the 114 charts in the manual for their educational value, not for their marketing sizzle. This will provide a more honest approach to the explanation of my trading system. The manual will show how to regularly spot two to four, some times more, daily opportunities for similar trades. Actually the charts I am displaying here were chosen for the simple fact that they are spaced 10 days from each other. In other words, I didnt pick the best charts for proving my point, just four charts for the SP 500 E-Mini front contract, which is the March 2003 as of this writing.
FULLY DISCLOSED
The mechanical systems usually provide backtesting for the last six or eight years. But lets be serious: can we compare what the market was doing in 1995 or with 1999 or with 2002? With the curve fitting as all mechanical systems use, the markets bullish tone may work in another bull market. But what about the next few years when it is more likely that we will see the continuation of the bear market, although with occasional and strong rallies? With strict adherence to chart analysis, the system can provide a good reading of what the participants are doing. A technical chart represents to the trader what an E. K. G. reveals about the heart to the cardiologist. Do you think it would help the doctor to have a black box analyzing the heart? I dont think so.
I use the Alpha Trading Indicator and the Alpha Channel for identifying a reversal. This way I can see when a new trend appears to be starting. And that is when the risk is smallest, allowing us to use small stops. In the event that the new trend aborts, which will happen occasionally, then the stop is hit but the loss is small. Key to this approach is the fact that I am paranoid about trading only in the direction of the main trend. That is why my setup always displays the direction of the trend, according to my interpretation. I must state that because I use a reversal system, you will never be able to buy at the bottom or sell at the top. Usually it will take three or four bars to identify when a new trend may be traded unless you use some of the setups I analyze. But I think it is safer to use this approach because it reduces risk and allows using small stops. The charts we display only include one of the three indicators for obvious reasons. And the charts were not selected because they are the best examples, they are not. We chose them because they are spaced 10 days apart from each other (the markets were closed January 19 and 20) so that you will not be misled. As I said above the tools used are so simple that I cannot reveal them. But you have a very crude idea of my setup if you go to www.alphafin.com and select the charts for the S&P 500 E-Mini (or any of the other charts displayed). There is also an archive with older charts. Some are better than others but you get a feel for what we are looking at. But as I said I am showing only one tool. If I showed the other ones, you would get to know too much. WHY ISNT THE SYSTEM MECHANICAL? Please let me quote the following story that I read some 30 years ago in the Readers Digest and is included in the Introduction I wrote for the system manual. A
mathematician at the University of Delft in the Netherlands,
submitted this question to the main frame computer he had been
using: I can select from two watches, one that does not work
and a second My point is that in this time and place, with the incredible tools available to traders, it is preferable to let the human brain interpret the information that is provided at blistering speed by todays PCs. It does require the intervention and the decision of the trader, who needs to take responsibility for the decision, rather than blame it on the black box. But as the trader evolves, he or she will be able to get an education that will let them grow and do better. We will agree that many traders will not make it because they lack the necessary traits for this demanding activity. But that also happens in any other profession and day trading the indices is no different. THE LAZY TRADER APPROACH In spite of my statement that the system is not for the laid back trader, I must admit that in the manual I analyze a type of trade with a higher percentage of winners although the average profit is more modest. It is a good trading style for the traders who cannot or do not want to be glued to the screen. In TS6 just activate your alerts and when you get one, interrupt what you are doing. Then examine the chart and see if you need to make a decision. Thats it.
This simple trading strategy can be used also by professionals who do not have the time for watching the screen all day long but are able to check the alerts provided by their software. This will require a change in the time frame setup and will imply carrying positions overnight. However, the apparent results seem extremely interesting. Actually this approach seems to be so universal that I even provide charts applied to trading T-Bonds and the Euro Currency to any buyer interested in these more exciting and rewarding markets. But the manual only covers the indices analysis. NEW TRADING SETUPS For the first time I am including in the new manual seven setups with the potential for good trading opportunities. The attentive trader will be able to identify them as the chart develops throughout the day. These are chart patterns that instead of depending on trend-following indicators are based on specific price action. We analyze our interpretation of risk and reward as well as the logical level of protective stops placement, as appropriate. Many of these setups show up every day and they offer the opportunity for potentially profitable trades. We could even say that just trading these patterns could be the only objective of many traders who prefer to reduce risk, even at the expense of fewer trades per day. So besides the detailed explanation of the trend reversal trading approach that is the main scope of the manual, the trader will have access to another type of trading opportunities with rather well identified characteristics. AN UNUSUAL MONEY-BACK GUARANTEE I am so confident of the potential of this Trading System that I am repeating the money back guarantee I offered over the last six years. If you did not make FIVE TIMES the cost of this system trading daily during the first 90 trading days, send the printouts of the trades entered showing that you applied the system correctly. If you did then I will refund your payment in full as long as you commit not to use my system anymore or to divulge it ever. THE LOW PRICE IS NOW EVEN LOWER BUT NOT FOR LONG As for the low price of my system in an environment that normally sees average prices of $3,000.00, I also felt that I should make it accessible to everybody, so price should not be an obstacle. Actually the low price has been occasionally a problem because some potential buyers were afraid that if it was this low, it shouldn't be very good. But I will still keep my price at a low $950. If you need additional information, please email me at lalvim@alphafin.com. May you enjoy very good trading results. Sincerely,
Luiz V. Alvim PS: I must admit my picture is dated, about 14 years old, but it is the last one I took. Please e-mail Alpha Trading Systems for more information. Or call
(281) 759-9925, fax (281) 759-9925. Or write: 2937 Meadowgrass Lane Copyright 1994-2007, Luiz V. Alvim. The C.F.T.C. requires the following statement: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN ACTUALLY EXECUTED, THE RESULTS MAY HAVE OVER- OR UNDER-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 FACT THAT THEY ARE DESIGNED WITH 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. Futures trading has the potential for substantial losses. Do not risk money that you cannot afford to lose. |
I am a trader, not a copywriter, so this
flyer will lack the pizzazz used in this type of promotion. But
I do hope that what may be missing as quality of copy may be
amply compensated by the sincerity of my explanation as I analyze
the approach of the Alpha Trading System for Day Trading the
S&P 500 E-Mini.
The
trading setup is always the same no matter if the time frame
you select is 1-, 3- 5- or 15-minute charts. Or even 25- or 500-tick
charts. The manual is based on 3-minute charts but also covers
other time frames.
My
system also has the characteristic of being fully disclosed.
If you throw in the trash bin my manual after learning my system
you would still be fully functional. Contrast this with the expensive
black boxes that cost several thousand dollars and do not teach
the trader anything.
one
that becomes slow one second every day, which one would I choose?
In impeccable computer logic the answer did not leave any margin
for confusion: choose the one that is standing still because
it will be right twice a day while the other one will take over
80 years to show the correct time again.
I will concede that this trading
strategy may be somewhat boring. But I am getting to an age where
I prefer boring with a good batting average, rather than exciting
and more stressful. That is why I call it the Lazy Trader approach,
adapting the name from marketing genius Joe Karbos The Lazy Way
To Riches, so popular in the 1970s.