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Traders International - Trading S&P500 Eminis + FX

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Hi all,

A few days ago, I came across a company called Traders International who provides courses on day-trading of the S&P500 “E-minis”. I logged on to one of their webseminar a couple of days ago as they were giving a live demo, using one of their techniques (double tops and double bottoms, together with proprietary stochastic and MACD technical indicator settings, whose values they did not divulge ) to pick very short term direction trades (most completed within 20 minutes).

The gist of it was as follows:

1) Every E-mini contract would cost $1000 each to establish.
2) Every point that the S&P500 moved was worth $50 per contract
3) You had the choice to enter both long and short positions

During the course of the demo, the instructor traded 5 contracts (each time) at market price when their indicators gave either a buy or sell signal. Immediately after confirming that the order had gone through, the instructor would issue 2 sell orders (a profit target and stop loss order). If the original trade was a long position and lets say it was entered at 2000, the profit target would be set to 2002 (2 points above initial trade) and the stop loss set to 1998 (2 points below initial trade), and vice versa if the initial trade was a short trade.

The amazing thing (to me, at least) was that out of 8 completed transactions, 7 were successful and had hit their profit target while the losing transaction was stopped out. With my very basic understanding of these things, the P/L on the profitable trades could be calculated as follows

Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract)

Similarly, the P/L for the loss making trade = -$500

As you can see, the 8 transactions would have yielded $3000 (6 net successful), from an initial investment of $5000, a return of 60% on one night.

Furthermore, the brokerage for trading from their recommended US broker could be as low as $2 to enter the trade and $2 to exit the trade, so over 8 completed trades would come to a paltry $32.

In essence, the methodology has been structured to give an equal potential gain and loss on each transaction and then to make money using their proprietary technical indicators to give the trader a better than even chance of getting it right. I guess if the probability of getting it right is >50% (even if it is only a little above 50%), then it pays to run as many transactions through the system as possible, especially considering the ridiculously low brokerage.

I have to say, based on what I have seen at least, that this is almost too good to be true. Perhaps I had misunderstood some of the things the instructor said (it was after all 4:00am in the morning :( ).

I am also baulking over their sizeable joining fee of approx U$5500. :eek:

Has anybody else had anything to do with Traders International, and if so, any feedback ??.

Also does anybody else trade these “E-minis” and are the returns (assuming the same 7/1 win ratio) anything like what I have described above (or am I still in Disney land !! after 2 days :) )

Bingk6
 
Re: Traders International - Trading S&P500 Eminis

bingk6 said:
Hi all,

A few days ago, I came across a company called Traders International who provides courses on day-trading of the S&P500 “E-minis”. I logged on to one of their webseminar a couple of days ago as they were giving a live demo, using one of their techniques (double tops and double bottoms, together with proprietary stochastic and MACD technical indicator settings, whose values they did not divulge ) to pick very short term direction trades (most completed within 20 minutes).

The gist of it was as follows:

1) Every E-mini contract would cost $1000 each to establish.
2) Every point that the S&P500 moved was worth $50 per contract
3) You had the choice to enter both long and short positions

During the course of the demo, the instructor traded 5 contracts (each time) at market price when their indicators gave either a buy or sell signal. Immediately after confirming that the order had gone through, the instructor would issue 2 sell orders (a profit target and stop loss order). If the original trade was a long position and lets say it was entered at 2000, the profit target would be set to 2002 (2 points above initial trade) and the stop loss set to 1998 (2 points below initial trade), and vice versa if the initial trade was a short trade.

The amazing thing (to me, at least) was that out of 8 completed transactions, 7 were successful and had hit their profit target while the losing transaction was stopped out. With my very basic understanding of these things, the P/L on the profitable trades could be calculated as follows

Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract)

Similarly, the P/L for the loss making trade = -$500

As you can see, the 8 transactions would have yielded $3000 (6 net successful), from an initial investment of $5000, a return of 60% on one night.

Furthermore, the brokerage for trading from their recommended US broker could be as low as $2 to enter the trade and $2 to exit the trade, so over 8 completed trades would come to a paltry $32.

In essence, the methodology has been structured to give an equal potential gain and loss on each transaction and then to make money using their proprietary technical indicators to give the trader a better than even chance of getting it right. I guess if the probability of getting it right is >50% (even if it is only a little above 50%), then it pays to run as many transactions through the system as possible, especially considering the ridiculously low brokerage.

I have to say, based on what I have seen at least, that this is almost too good to be true. Perhaps I had misunderstood some of the things the instructor said (it was after all 4:00am in the morning :( ).

I am also baulking over their sizeable joining fee of approx U$5500. :eek:

Has anybody else had anything to do with Traders International, and if so, any feedback ??.

Also does anybody else trade these “E-minis” and are the returns (assuming the same 7/1 win ratio) anything like what I have described above (or am I still in Disney land !! after 2 days :) )

Bingk6


Essentially, that's basically how it works, but they've presented the best case scenario.

You will have losing days as well. I trade eminis and quite a few trade the SPI here as well (the aussie version)

$5k is an outright rort though.

For a free grounding in emini trading (and a similar methodology) try www.woodiescciclub.com

But be careful... they kike to sugar coat things as well.

Good luck
 
Re: Traders International - Trading S&P500 Eminis

wayneL said:
Essentially, that's basically how it works, but they've presented the best case scenario.

Good luck

WayneL,

Thanks for your contribution once again. Don't know what this forum will do without contributions from yourself, sails and Mag etc etc.

I understand what you are saying, I guess the interesting thing for me was that these 8 transactions were traded on live data, in a chat room style format between the instructor and the various people who had booked in to view the demo at that time. We were able to watch the double tops and bottoms as they formed, to initially prepare the order and to activate the order once the final confirmation came. The steps looked structured and methodical to me.

I guess that the fact that they were prepared to demonstrate their techniques using live data is a plus.

Bingk6
 
Re: Traders International - Trading S&P500 Eminis

1) Every E-mini contract would cost $1000 each to establish.
2)
Every point that the S&P500 moved was worth $50 per contract
3) You had the choice to enter both long and short positions

Are you sure, most brokers will give you $5 a point on approx $1000 margin.




the 8 transactions would have yielded $3000 (6 net successful), from an initial investment of $5000, a return of 60% on one night.
Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract)

Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract
)
Even at the claimed $50 a point by taking 2 points profit a trade
2x50 = $100 per completed trade, which on 8 trades (6 net successful), would be $500, a return of 10% on one night.


could be as low as $2 to enter the trade and $2 to exit the trade
could be??? what conditions need to be met to qualify for that rate??

No mention of platform/data/exchange/access fees? :cautious:


I think I'd be cautious ........ :D
 
Re: Traders International - Trading S&P500 Eminis

Kauri said:
1) Every E-mini contract would cost $1000 each to establish.
2)
Every point that the S&P500 moved was worth $50 per contract
3) You had the choice to enter both long and short positions

Are you sure, most brokers will give you $5 a point on approx $1000 margin.




the 8 transactions would have yielded $3000 (6 net successful), from an initial investment of $5000, a return of 60% on one night.
Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract)

Cost to initiate trade $5000 (5 contracts x 1000/contract)
Profit $500/trade (5 contracts x 2 points x $50/point per contract
)
Even at the claimed $50 a point by taking 2 points profit a trade
2x50 = $100 per completed trade, which on 8 trades (6 net successful), would be $500, a return of 10% on one night.


could be as low as $2 to enter the trade and $2 to exit the trade
could be??? what conditions need to be met to qualify for that rate??

No mention of platform/data/exchange/access fees? :cautious:


I think I'd be cautious ........ :D


Just to clarify some of these points.

There are several different emini contracts, the most popular of which, along with their point values are below

emini S&P 500:
$50 per point; minimum tick = .25 of a point i.e. $12.50 per tick

emini Dow:
$5 per point; minimum tick = 1 point i.e. $5 per tick

emini Nasdaq 100:
$20 per point; minimum tick = .5 of a point i.e. $10 per tick

emini russel 2000:
$100 per point; minimum tick = .1 of a point i.e. $10 per tick


Commission is generally around $2-$3 per side.

Margin for daytrades are generally 50% of initial margin, though some brokers are as low as $500

All in USD of course

Cheesr
 
Re: Traders International - Trading S&P500 Eminis

In essence, the methodology has been structured to give an equal potential gain and loss on each transaction and then to make money using their proprietary technical indicators to give the trader a better than even chance of getting it right. I guess if the probability of getting it right is >50% (even if it is only a little above 50%), then it pays to run as many transactions through the system as possible, especially considering the ridiculously low brokerage.
I use this same principal to swing trade forex. The only difference being that the take profit side is set 10% larger than stop loss. My contention being that less than 1/10 trades will not make this new level that would have made the 50/50 level (if you get my drift). I also only take positive carry positions. I recently had Kaveman code up my system for me and numbers ranged from 45% wins to 70% wins over a 12 month period. Hence im pretty comfortable to trade the system.
 
Re: Traders International - Trading S&P500 Eminis

Milk Man said:
I use this same principal to swing trade forex. The only difference being that the take profit side is set 10% larger than stop loss. My contention being that less than 1/10 trades will not make this new level that would have made the 50/50 level (if you get my drift). I also only take positive carry positions. I recently had Kaveman code up my system for me and numbers ranged from 45% wins to 70% wins over a 12 month period. Hence im pretty comfortable to trade the system.

Hi Milk man,

Just to clarify, I take the < 1/10 figure to mean that once you reach the 50/50 profit target that there is a > 9/10 probability that it will reach higher to the additional 10% ???

In any case, the 45% - 70% are damn good odds. I understand that these stats were generated from the forex market, but 2 questions:

1) do you believe similar percentages can be achieved trading other instruments, eg indexes or individual stocks, and
2) were these numbers derived from system back-testing or were they actual trades?

At 45% - 70%, one could almost comtemplate letting the automated system generate all the buy/sell orders (with appropriate profit target/stop loss settings off course) and just check the health of your monthly balace :) Off course the brokerage will have to be real cheap to even contemplate this.
 
Re: Traders International - Trading S&P500 Eminis

:)

Hi folks,

DOW/S&P500 ..... looking ahead, mostly positive
cycles coming into play, in September 2006:

04-05 September 2006 ..... long

08-19 September 2006 ..... long ..... big rally here??? ... :)

22 September 2006 ..... equinox ... negative cyce here.
= selloff???

..... and then, mostly negative, until 16 October 2006.

More later.

happy trading

yogi

:)
 
Re: Traders International - Trading S&P500 Eminis

Hey dude,
Just thought id answer some of your questions.

bingk6 said:
Hi Milk man,

Just to clarify, I take the < 1/10 figure to mean that once you reach the 50/50 profit target that there is a > 9/10 probability that it will reach higher to the additional 10% ???

Thats what I reckon considering most go way past my take profit anyway. I guess the market will have the final say on that one. :)

In any case, the 45% - 70% are damn good odds. I understand that these stats were generated from the forex market, but 2 questions:

1) do you believe similar percentages can be achieved trading other instruments, eg indexes or individual stocks, and

Indexes and commodities maybe but I'm a bit dubious on shorting stocks, WayneL could say better than me.

2) were these numbers derived from system back-testing or were they actual trades?

Initial manual backtesting suggested 55-70% wins I think, I real time tested for a couple of months and this confirmed that. I had kaveman code the system to amibroker for me so I could test a larger timeframe and make sure I hadn't missed any trades. The results were about 45-70% wins.

At 45% - 70%, one could almost comtemplate letting the automated system generate all the buy/sell orders (with appropriate profit target/stop loss settings off course) and just check the health of your monthly balace :) Off course the brokerage will have to be real cheap to even contemplate this.

I noticed you mentioned brokerage. Forex has no brokerage (not with my broker anyway), they use buy/sell spreads to make their money. For example, they buy off another trader and then sell to me slightly higher (for a long).

Hope that helps. (do read below message though :) )
 
Re: Traders International - Trading S&P500 Eminis

a good website if your interested in day trading futures in the US is www.tradethemarkets.com

they have a live trading room and custom indicators too, pretty good, expensive though, how ever if your smart enough you can pick everything up in the trading room...

check out there indicators too. there also expensive, but for more info on them PM me, dont pay for them off them, ill tell you how to get them cheaper...
and no i dont work for them...lol

but they do offer a good seervice.
 
Re: Traders International - Trading S&P500 Eminis

Traders International have a 1 day course coming up in Perth 8th Oct.

Its about $A500.00 and I guess its mostly a push to get you to spend the $US5000 for the full course and live trading room at $A125 odd a month (a few months worth in the $5000). There was an hours intro. last weekend at a seminar I went too , they are mainly trading the EMS&P500 so $50 a point as WayneL said. I have been trading the system they showed in the intro (as much as I wrote down anyway) in the Sonray game and Its doing pretty well so far without their indicators. Ive been watching a couple of hours a night and trading about 3 times.
NA
 
Re: Traders International - Trading S&P500 Eminis

DT_Futures said:
a good website if your interested in day trading futures in the US is www.tradethemarkets.com

they have a live trading room and custom indicators too, pretty good, expensive though, how ever if your smart enough you can pick everything up in the trading room...

check out there indicators too. there also expensive, but for more info on them PM me, dont pay for them off them, ill tell you how to get them cheaper...
and no i dont work for them...lol

but they do offer a good seervice.

Agree.

We even have a thread on them

https://www.aussiestockforums.com/forums/showthread.php?t=4204

It's not too hard to work out the indicators.

Cheers
 
Re: Traders International - Trading S&P500 Eminis

Hi all, I am new to this forum site.

I am interested in getting into Eminis trading and wanted to get in contact with anyone who is trading the eminis markets regularly. I would like to find out your views and what you're trading and so forth.

I have been interested in signing up with Traders International, but am a bit reluctant to pay the $7000AUD fee.
Is anyone here signed up with them?

Any feed back would be much appreciated.
Thanks,
Hayden
 
Re: Traders International - Trading S&P500 Eminis

Hi all, I am new to this forum site.

I am interested in getting into Eminis trading and wanted to get in contact with anyone who is trading the eminis markets regularly. I would like to find out your views and what you're trading and so forth.

I have been interested in signing up with Traders International, but am a bit reluctant to pay the $7000AUD fee.
Is anyone here signed up with them?

Any feed back would be much appreciated.
Thanks,
Hayden

Hi Hayden,

Although you are new to this forum, are you new to trading or quite experienced? If you have a good amount of experience then I suppose you would not even be entertaining the notion of spending $A7,000 for this scheme, so I will assume you are fairly new to it all. That’s ok, we all start somewhere!

Have a read of this thread (posts above) before you spend $A7000 with anyone. Also, there is a HUGE amount of information about trading the eminis available on the net, all at NO cost.

Initially spend some time on the website of the Chicago Mercantile Exchange (CME) and read everything you can there first about the exchange and the emini contracts. It is not necessarily easy reading, but if you do not understand something that is fine, sit with it, re-read it, ask them questions (the exchange is more than happy to answer email queries). Ask questions here too.

If you want to find out about trading methods there is plenty of that available all over the net too. Find some forums with a focus on trading these emini instruments, there are plenty of people who will exchange information and advice. Now, I am biased (because this is what I do), but I think you could do far worse than adopting an approach based on the works of Richard Wyckoff, start with some Volume Spread Analysis (VSA) and learn from there. I will dob in “tech/a” (start with his most recent posts, he concentrates on ASX shares, but the principles are the same) and “motorway” as the best information on this type of analysis. As I said, this is the style of analysis/trading I use, so I am biased and others will have other ideas but don’t listen to them (joking!). Have a look at this thread, the posters here are active in these markets and it would be more than worthwhile reading their contributions. Start with the most recent posts and work back.

You will need to find a method that works well for the parameters within which you wish to trade – capital available, risk tolerance, time available, skill set, and so on. It is very tempting to think that you can buy all that you need for the $7,000 fee. You can’t. All the promoters of these various schemes will tell you can (prices may vary…). Some of the promoters will pose as disinterested third parties on forums such as this one, beware.

The emini equity indices are FANTASTIC markets to trade. Low brokerage, huge liquidity, huge scope to expand the size of your trading as you get better. Here comes the … BUT … it is not an easy road, and you WILL have to do A LOT of work. You WILL have to spend a lot – try to make it the spending of time rather than money, because the time you spend in effective work and learning of this stuff will give you a much bigger return at much lower risk and with a much great probability of success. You WILL NOT be successful with it with a $7,000 box.

What else… Someone immeasurably smarter than me has said that there is more to this game (trading the eminis) than meets the eye, and that it requires much more than you think. Never a truer word has been spoken. You will not find the answers in a week cruising the net for information. I would suggest you spend at least 6 months intensive learning; launch yourself up the learning curve during this stage. The learning process never stops, but it levels off somewhat.

By all means start trading well before the end of the 6 months; actually being involved and doing will teach you a lot. You may (most likely will) lose some money during this phase, but keep it very limited. During this phase make sure you use stop losses (if you cannot use stop losses DO NOT get involved in any futures market) and exit all positions by the close of the “Regular Market Hours” at 4.15pm NY time (check the CME website for earlier closing times on approaches to holidays etc.). More on stop losses – they are a trader’s best friend. They are tough love, but they are love.

Hope this helps.
 
Re: Traders International - Trading S&P500 Eminis

excellent post Timmy:)

Hi all, I am new to this forum site.

I am interested in getting into Eminis trading and wanted to get in contact with anyone who is trading the eminis markets regularly. I would like to find out your views and what you're trading and so forth.

I have been interested in signing up with Traders International, but am a bit reluctant to pay the $7000AUD fee.
Is anyone here signed up with them?

Any feed back would be much appreciated.
Thanks,
Hayden

Hi Hayden,

You'll have to ask yourself whether you'll get even close to $7K of value out of a course. Personally, I don't think any course is going to give you that. IMO, the hardest part of daytrading is the psychological aspect of it. How will you handle the waiting that can be involved before you take a position? How will you react when a position moves against you whilst you are in a trade? Developing the discipline to sit and wait for an entry signal, and then to execute the trade without hesitation, and to be able to keep your stop in the appropriate place for the entire length of the trade is 100 times more difficult than you think it will be before you start trading. This is something that you need to learn yourself- I'd be very surprised if you can be taught this by anyone else. Everyone has different levels of patience/can handle different levels of drawdown within a trade,etc, so you really need to get in there and start doing it to find out what you are comfortable with. How will you feel if you spend $7K, only to find out that the methods they are selling don't sit very well with you, and you find you have to go back and design something else that you are comfortable using?


To start with I would suggest the following-

get some decent software and some data for the markets you plan on looking at. You need to become familiar with the way the markets you are following move during the day, so that you can find a method that you are confident will make a profit.

From there once you've come up with a strategy that you think you can implement successfully, move on to trading on a sim. You need to prove to yourself that you can actually execute in real time what you've been looking at on static charts. Once you have proven that you can make consistent profits on a sim, then move on to trading live with 1 contract and prove that you can turn a profit when there is real money on the line. If you find that you are having problems executing a strategy you come up with live, then you need to stop trading with real money/ on the sim straight away and go back to the beginning and start again. The goal should be to spend as much time as you can preparing before you risk a cent, so that you can give yourself the best possible chance to keep your capital whilst you are learning.

How much experience you have at trading will probably determine how long it'll take before you can make a profit consistently. I had been trading EOD for a few years before I moved into daytrading, and it took me about 5 months before I really started getting it and was turning a regular profit. If you haven't done any trading before, expect it to take quite a bit longer- no matter what people trying to sell you a $7K course tell you- you won't be the next Marty Schwartz by the end of next week- it takes quite a bit of time to get consistent.

Hope this helps a bit.
 
Re: Traders International - Trading S&P500 Eminis

Hope you don't mind me hijacking the thread with this .

Below is an ugly chart , I think we'd all agree to that by now so it was a pointless comment but one that I felt had to be made .

The 1390 close is well below the surface , , the next moves are quite critical for the S&P . for starters they now would have to exceed 1431 to get the snorkel working and close above it with further advances immediately in the prevailing sessions .

Below that are a few points of critical interest starting at 1380 , next 1370/68ish and below that is a nasty 1340/30 area , if this last area fails , the next closest area I have is around 1245 then 1200 .

Only the cos. books no where it will go now .
 

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Traders International?

re: www.tradersinternational.com

Has anyone heard of or joined Traders International. They concentrate on the E-Minis. I've been to a couple of their seminars but would like to hear if any success/horror stories/ or just comments.

Thanks.
 
Re: Traders International?

I have mixed comments about these guys. I spoke to a guy who has started their course and he was pretty happy with it. He did say he was a little disappointed with how much educational material there was, but other than that he had positive things to say about the trading room he was in (the european one). He was only trading on a simulator at that stage, I'm not sure how he's doing with cash now.

A few things on the downside:
1. The client testimonial video on their website includes one of their own salespeople! I have worked in marketing in the past, and that sort of thing is an absolute no-no - a real shocker! That alone raised a red flag about these guys for me.
2. There's a LOT of negative comments about them on the net (so check out other websites), although many of those comments seem to be about what the company was like in the past.
3. One of their sales lines is something like "make $500-$1000 a day trading", they don't mention that that sort of income should only be expected after a few years - one of the common bits of mis-information that goes around about trading is the expected income in the first few years.

If you want to know the reality of trading, you may want to have a look at this video: http://puretick.com/video/thetruth/

I looked at Traders International, and after seeing this video decided to join PureTick instead, and am extremely happy with them. If you'd like to know more about them (I don't want to turn this post into some sort of sales spin) please feel free to email me directly. Cheers.
 
Re: Traders International?

There is an existing thread dedicated to discussion of this. I'm merging these comments in.

ASX.G
 
Re: Traders International - Trading S&P500 Eminis

Hi everyone,iam new to this forum and also to trading.Ive been looking at the traders international website and their results seem to be impressive in the live trade rooms.Is it really all its made out to be,or just clever marketing?
My aim with eminis trading is to get a consistant return of 10% on my money anything above would be a bonus,is this unrealistic for a novice?It appears that traders International are averaging a much higher return than that?Any information from experienced eminis traders would be greatly appreciated,thanks.
 
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