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Do
not trust your own mother.
Let me
be honest. If my mother called and offered to sell me a
trading system with astounding "real life results," I
would hang up the phone.
You,
too, should not trust a company that publishes its system "results" without
independent verification. It's not simply
a question of outright fraud (although a surprising number of
trading system vendors just make up imaginary results
and hope no one double checks them). There's
a more serious problem.
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For every one
profitable trading system that is "discovered"
through back testing and optimization, there are nine others
that lose money. So the same company that touts a
"miracle" system in magazine ads probably won't tout
the other nine systems that it tried, but which lost money. |
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Lots
of companies sell "astounding" trading
systems. Here is a way to prevent being, er, astounded. |
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Collective2
verifies trading systems
Collective2
is a free Web site that monitors trade systems. When a system recommends a trade,
we verify how the trade really performs, by monitoring
real-time quotes from the exchanges. More important, a company can't
simply throw away bad results it doesn't like. Let me show
you a typical chart you will find on our Web site.
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