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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 cannot and 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
trade systems just make up imaginary numbers. There's
a more serious problem.
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For every one trading system that
eventually turns out to be profitable, there are nine others
that lose money. 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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A chart
from the Collective2 Web site, which rates trading systems. |
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How to read the
Collective2 charts
First,
notice that we monitor all kinds of trading systems: futures,
stocks, options, even Forex. The first step is to look for the
kind of system that interests you. Next
look at the "age" of the system. This is how long the
company has agreed to let us monitor their trading system. You should subscribe to trading systems only if you
are comfortable with the length of time they have been
monitored.
Next
look at the right side of the chart. Collective2 encourages
trading systems to offer subscribers free trial periods or
performance guarantees.
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To
see examples of this, look at the magnified view to the
right. Notice how there are many trading systems on the
Collective2 Web site, and many of them offer some kind of
free trial period or profit guarantee. And because it is
Collective2 which is responsible for measuring
profitability - not the system vendor - you know that you
will be charged fairly. |
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How to "subscribe" to
a trading system
Once you are interested in a
trading system, subscribing is easy. Collective2 -- not the
trading system company -- is responsible for keeping track of
your subscription information, and for emailing the trades
recommended by the system. So you never have to trust a small operator
with your credit card or personal information.
After you subscribe, here's what
happens. Whenever the trade system makes a new trade
recommendation, an email is automatically sent to you -
instantly - telling you what to trade, where to set your stop
loss, etc. Here's an example of a "trade signal" you
might receive:
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Our Web site is free
It costs nothing to use our Web
site to find a good trading system. (Rather, Collective2 makes
money by charging trading system vendors a commission for each
subscriber they receive.)
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