HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

 

More than a Training Garage?

For the past several years, we have had the Flux Training Garage for the purpose and benefit of helping people thoroughly understand how to use the Flux tools. We demonstrate the functions of the tools in live market environments to help traders see the effectiveness, and limitations of the tools in the futures, Fx, equities, and commodities markets.  The challenge of the Training Garage, is accommodating a wide range of trading experience and trader expectations. Some traders want to see more live trading than theoretical discussions about trading. Other traders are starting out from nothing – and have no concept of trading system development – risk management – statistical relevancy – or trading plan construction. Most new traders have no concept of the inherent risks of trading, or the discipline required to execute a trading plan. It has been a privilege and honor to participate in this industry as a voice and a call to the obvious – that while trading has virtually unlimited potential for reward, it has an equally and most often more powerful potential for risk and loss or principal and more.

One of the questions that nearly every trader has when they start trading, is this:

“Is anyone making money in this industry? Or are just trading system vendors making money?”.

I know this question. I used to ask it a lot, when I first started investigating trading methodologies. The problem is that most of the people online don’t teach like we teach. Don’t trade like we believe traders should trade. They make wonderful claims like this one (this was one of the top “live trade room Google searches, by the way…”

I wanted more for our clients. There had to be a better option for people. Someone who didn’t use the word, “Pajama’s” in their marketing…

A new opportunity emerges

About a year ago, I met a trader that was using the FLUX tools as part of their daily trading program. We started talking about these questions – and I started asking the trader questions about their experiences. I’m very up front with people in our webinars. As a system developer, I would have to honestly place my name in this NFA statement:

MICHAEL HAS HAD LITTLE OR NO EXPERIENCE IN TRADING ACTUAL ACCOUNTS FOR ITSELF OR FOR CUSTOMERS. BECAUSE THERE ARE NO ACTUAL TRADING RESULTS TO COMPARE TO THE HYPOTHETICAL PERFORMANCE RESULTS, CUSTOMERS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THESE HYPOTHETICAL PERFORMANCE RESULTS.

But I wanted more for our customers. I wanted them to have access to someone that traded professionally.

And so I sat down and asked my trader friend one last question.

“Would you be willing to trade in a live environment, and let other traders watch you while you trade?”

You’ll be surprised to hear that the answer was initially not a positive one. In fact, it was met with a lot of resistance. As vendors, and traders, we have to be extremely careful about what we present when it comes to a live trading room. I knew for myself how people could be irresponsible with the information and tools you provided them with. As recently as last week, a new Flux client with fewer than 10 minutes experience in the Training Garage placed a live trade, with actual account capital – and lost. What was surprising was their reaction – that their loss was somehow our fault.

Someone in the room for 10 minutes. Someone that had only just purchased the software the prior Friday (it was Monday). It gives me chills to this very moment what people will do.

So before I go any further, I need you to understand that you read these disclaimers over and over again. If you decide to work with us in this trade room – I need you to understand that we’re going to ask you to sign forms that state you not only read, but understood these things – and waive any right to hold anyone but yourself accountable for your trading actions as a result of your exposure to this service. I’m serious as a heart attack about this. If that’s too much to ask, than don’t read any further. As much as we have a heart for traders, we can’t put our families and livelihoods in harms way. You’re going to see a ton of disclaimers on this page, and on the photos and charts we use. I want you to understand why – and those of you that know us know where we’re coming from.

If we still have your attention – keep reading.

Those of you that work with us, know our reputation. We take our company and its responsibilities seriously. We stress the importance of trading discipline, emotional control and management, trading plan, money and risk management above any of the tools we provide. So when I decided to pursue the trading room, I needed to see for myself what the trader could do, with people watching him over a statistically relevant period of time.

Mark Douglas in his book, “Trading in the Zone” talks about something as statistically relevant if it shows profitability potential across 30 trades or data points. 30 good results gives you permission to look deeper, and go to 100 or more results and see if the model is still robust enough to investigate even deeper.

So I sat in a GoToMeeting with the trader for 4 weeks and watched charts that looked almost identical to these:

I watched to see the live trades setup to see if someone wanted to follow along on a simulator could place the same trades. Was there enough time to enter on the SIM Dom?

I watched to see if I started to understand why the trades were being taken, and listen to see if they were being explained. Did I understand the “Why”?

I watched to see if the results at the end of each week, at the end of the four weeks, were profitable or not had one followed along in their simulator. Was this worth my time?

 

Assuming a $7,500 demo account, here are the results from those four weeks:

 

 

For people that couldn’t sit in front of a monitor all day…I filtered the trades based on stopping by 12:00pm est.

 

I like to encourage people to be ultraconservative with things. In my “engineering mind”, I take results like these and immediately cut them in half.

I immediately take the draw downs and double them.

When I did that, I saw an equity curve with about 200 data points.  $7,500 to $15,000 in 4 weeks. Cut in half, $7,500 to $11,000 in four weeks. [8am-4pm data]

When I did that, I saw an equity curve with about 200 data points.  About a $400 draw down.  Double it, about an $800 draw down. [8am-4pm data]

 

This was done with only 1-2 contracts. Mostly 1 contract…trading the Emini S&P and the Emini Nasdaq.

For the entire results report, click here :  K2 Room 4 weeks

There are 2 weeks missing, by the way. 1 week was a vacation break, followed by a “bed rest” week as a result of a severe flu.

I realized today I was missing one spreadsheet after the trader came back from his antibiotic regimen. Here was the sheet from the next day:

 

Now, someone emailed me today and was pretty upset at the price of the trading room. They said that our room was comparatively high to most of the other rooms out there.

You look at these spreadsheets. Go back and look at the pajama company website.

 

If you still think the room is expensive, there’s not much I can say to change your mind.

If you’re still interested – and I hope you are – keep reading….

 

I asked the live trader what kind of stops traders following along with a simulator would be using.

This was what he sent me:

STOP :       Stop [ADR <20]         Stop [ADR 20-30]      Stop [ADR 30+]

ES                   4 pts / c  $200              6 pts / c  $300              8 pts / c  $400
NQ                  5 pts / c  $100              10 pts / c  $200            20 pts / c  $400

[ADR=Average Daily Intraday Range of emini front month contract]

 

Most of our clients are trading small accounts, and have a small tolerance for trading pain and large draw-downs.

I appreciated the concern that the K2 trader had for those traders, and his adherence to a trading plan that took their limitations into account.

There’s nothing worse than watching trades placed that you simply cannot take. I know, I’ve been in trading rooms for $395 a month that used 15 point stops.

My Alaskan Malamute can call trades with 15 point stops. (this guy actually said his calls came from which direction his dog wagged his tail. True story.)

 

What really impressed me about K2?

What I was most impressed with, after watching for 4 weeks, was the trader’s reluctance to trade when the market was behaving erratically.

He aired on the side of caution, and patience – and inaction – and wasn’t in a particular rush to place trades out of some misguided need to be doing “something”.

The room was quiet. A lot. But when he spoke, it was informative and educational information. Encouragement to stay the course, and wait. We used to say “HUA” …(hands under ***) back in the day.

K2 was old school. I was in love at that point.

 

He uses a hybrid blend of Flux markers, different time frames…High Probability Entry times, and support and resistance areas developed from chart structure. There was no software on the screen that any Flux customer doesn’t already have, which made me really comfortable.

The trades were a blend of styles, but in retrospect were mostly counter trend and or break out trades, based on Flux times,  and Flux trend direction. After a few days, I began to anticipate the areas he was watching and see the types of setups he looked for. There was an element of discretion involved, but at the end of each week, the results sort of spoke for themselves.

He explained that such and such chart was a volume chart, and why. It was calming. Reassuring. Like what people normally said about Ron’s room. But there was less talking. More looking for trade setups. Sometimes 30-60 minutes of just watching with no commentary.  It took some time getting used to, but after a few days I was comfortable with the silence.

 

After 4 weeks, and those types of experiences, I had made up my mind. I wanted our customers to have access to this room, and to this trader. The combination of positive trades, attention to risk, and use of the Flux tools were enough for me.

But we needed a logo. You know me – I love the marketing behind things. So we came up with a logo:

 

 

We needed a limit, too. How many people could sit, watch – and when provided the opportunity – ask questions that could be answered in a reasonable amount of time.

Based on our past experience, we sort of knew that number right off of the bat. No more than 50 people.

 

My marketing brain kicked in again, and I invented the K2 trading island, with 50 pieces of virtual property:

 

What happens next? Well…we’re rolling forward.

 

How much does it cost to live on the K2 PRO Trading Room island?

The first 5 lots are already sold. People who wrote me after the first email went out and said, “We trust you. If you think it’s good – we want in.”

The balance of the room slots are going to be a monthly, first come first serve subscription of $495.00

 

There will be no room trials. No peeks or pokes. Nothing like the other “gurus” do to get people hyped up.

You guys know us – have been in our Training Garage long enough to know that we take this seriously enough to not jerk you around.

What we can do, is. If the K2 room doesn’t generate $1,000 a month in example trades that can be followed on a simulator from home using 1-2 contracts, we’ll include the next month’s subscription for free.

 

Once you purchase a slot in the room, you will be sent an application to be digitally signed and returned.

Once the contract has been signed and returned, you’ll be sent the passcode information for the room.

We start September 1st, 2011. 

 

I can’t think of a fairer way to do it. And September 1st, we begin.

 

We will be using the same “GoToMeeting” platform for the K2 PRO Trading room. Just like the one you had with Ron.

You cannot watch Ron and the K2 room simultaneously on the same computer. At least not yet (we’re working on having a custom room program made that will let you sit in the K2 room, as well as the Training Garage)

As a K2 Member – you will also have access to the Training Garage, if you want to watch Ron also on a 2nd computer, for the time being.

 

I won’t try to hype this up, or down, beyond what I’ve presented here. I shouldn’t have to, if you truly understand what we’ve laid out here on this page.

You asked for a room that showed nothing but live trades, for traders that had the Flux.

We’ve built you a room, that does nothing but demonstrate live trades, for traders that have the Flux.
I can’t tell you how excited I am to be able to offer this to you. It’s not often that I meet someone who trades this well.

It’s even rarer that people who trade this well, share what they’re doing with other traders.

 

Some traders will probably use the room to confirm entries of their existing signals.

Other traders will probably use the room to develop a deeper understanding of what a professional trader harvests from the Flux materials, daily.

And finally, some traders will probably “Shadow” trade alongside the trader with their simulation account (remember the NFA rules we have to follow).

 

 

The link to get started, is below. It’s a one time purchase this go around. But in 30 days, you’ll be sent a link to a subscription button that will automatically bill your account every 30 days to automate the book keeping and keep Ron from losing his accounting mind.

 

When we get to 50 people, I’ll refund the 51st purchase and take the link down.

Otherwise, get signed up today and move into the K2 Pro Trading room Island Community….powered by the FLUX

It took me one year to build this for you. I hope you’ll seriously consider giving this a go around. Ron and I will be as involved in the room as you will be. Years from now, I believe – people will be comparing everyone else to this room…just like the recognition we’re getting from the trading community for the groundbreaking Flux tool set. I won’t settle for anything less – and you shouldn’t either.

Email me if you have any questions whatsoever.

 

$495.00 K2 Pro Trade Room Deposit (1 month subscription)

Or, if you don’t want to use PayPal, use this option to put down your deposit:

PLEASE READ BEFORE PURCHASING:   K2PTR AGREEMENT

You will be sent an electronic version of this contract to sign prior to receiving your passcode for the K2 Pro Trading Room

 

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. 

 

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

 

Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. You must review customer account agreement prior to establishing an account. Investors could lose more than their initial investment. You must review customer account agreement prior to establishing an account.

Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.