These are some frequently-asked questions:
Can I switch portfolios later on?
Yep. All our portfolios are the same price. So at any time, just contact me and I can deactivate your old codes and give you a set of new codes.
What’s the catch to your service?
The catch is that if you make a million bucks with this service, you’re going to owe me big: you’ll have to buy me front row tickets to a 49ers or Giants game!
The real catch is that it’s hard to live through the drawdowns. This isn’t a cake walk to a million bucks. It’s going to take major intestinal fortitude to live through the drawdowns.
The other catch is that you never know what can happen in the future. Even though I’ve analyzed literally every minute of the ES going back 21 years, it doesn’t mean that the future is guaranteed. Any investment you make has risk, and using the automated systems from this service are certainly no exception.
Do I have to used the automated system? Or can I just get alerts when you do trades so I can manually follow along in my own regular brokerage account?
You can definitely just manually follow the trades. Doing the automation means you have to sign up for a TradeStation account. If you don’t want to do that, or if you don’t like the idea of the automation for other reasons, you can just enter the orders manually into your preferred brokerage account at the same time as the automated system would. I send out email and text alerts every time a transaction takes place and I keep my live portfolio showing on the live stream at all times, so you can easily use those tools to follow my trades manually if you want to.
I’ve seen some services that promise 1,000% returns. How comes yours doesn’t?
The truth is that I tried! I just can’t find an automated way to generate those sorts of returns. I’ve found it rare that people can generate those sorts of returns, but the ones I know who do it are full time traders. They have an extra intuition built into their trading that may not be able to be automated. Also, I’ve seen many cases where someone makes 1,000% one year, and the next year they’re not “in the zone” and they are losing money. It’s hard when you’re going based off intuition and depending on your day-to-day emotional status to get the job done.
The benefits of using this service over one that promises 1,000% returns are:
- You don’t have to do this full time! You still work your normal job or do whatever else you want to do with your life. This just runs in the background. (You do have to check on it a few times a day though to make sure it’s running – learn more here.)
- Remember: making 100%+ per year is nothing to sneeze at. Millionaire status is on the way if those sorts of returns are earned regularly. Check the calculator.
- With this service, I’m running the same exact portfolio as you would. So your trades will directly mimic mine. I haven’t found a service yet where you can truly mirror like that. With most services, you get delayed notifications of trades, or you have no way to verify that the person suggesting the trade actually has his/her own skin the game, or the product they’re trading isn’t liquid enough to be tradeable by a lot of people at once.
The least risky portfolio you offer still has a maximum drawdown of 29.7%. Do you offer anything that’s even less risky?
Yes. I can change the compounding ratios so that the maximum historical drawdown goes down to 18.4% with a median annual drawdown of 8.7%. The annual return historical is 62%. It would require a $65k account size to operate it bare minimum. I won’t be trading it live, but it uses the same trades as the System 1 portfolio so monitoring my live portfolio is still meaningful. Just contact me if you’re interested in this setup.
You said we have to use TradeStation to use your automated trading system. But what if I really, really don’t want to set up a TradeStation account?
It just means you’ll have to manually enter the trades. I alert all the trades by email and text, typically with about an hour notice. You can definitely just execute the trades manually in whatever brokerage account you want. There are very roughly about 100 trades per year, which averages out to only two trades per week. And the entry trades almost always happen right at 3pm Pacific Time, so their timing is predictable. Not too bad if you choose to do it manually.
Why do I have to have a bigger account size for a portfolio that makes a lower percentage return?
It’s almost like a paradox, right? The reason is because there is a tradeoff with the risk and the reward. If you want lower risk (which entails lower drawdowns), then you need to compound less aggressively with these particular portfolios. To compound less aggressively, you need to start with a bigger account because the “divisor” used for compounding has to meet a minimum size criteria.
Why do I need to have so much money in my account to use your system?
The first key reason: you have to have at least $6500 in order to buy a single ES futures contract. So no matter what, you need that.
The second key reason: the way I’ve been able to balance the portfolios and get the absolute most out of them is by having multiple strategies going at the same time. Imagine that you have only one trading strategy, and that it’s to buy ES futures every time the market goes down 100 points, and then sell it when it goes back up 100 points. That might be a nice little strategy, but there is a whole lot of “in between” where the market is not down 100 points and yet there is still an opportunity to make money. So I combine multiple plays together to try to make the most use of out the capital available. It’s a balancing act trying to get the best returns while keeping the account size requirements low, and the portfolios I put forward here are the best I could do at it. It’s unfortunate but true: you have to have at least $10k to be able to take advantage of these systems.
On a related note, I wanted to see if I could borrow 10k off a credit card and turn it into a million bucks, and you can see how that account is faring. I’m not in any way urging you to borrow money to fund your account (it’s very risky!), but I am saying that’s what I did as a challenge. I take pleasure in thinking of creative ways to come up with funding for investments.
2017 was a killer year for the stock market, but it was not a top performing year in your portfolios. Why not?
Great question! The reason is because my automated systems are, for the most part, built to be “buy low and sell high” portfolios. In 2017, the market just kept going up and rarely presented good buying opportunities from a value perspective. So in general, in years where the market goes straight up all year, back tests show a solid return, but below historical portfolio average returns.
Our portfolios did particularly well in back tests for market crash years. So if the market ever just implodes, there might be a gargantuan payoff coming our way.
Can I use the income from this as my regular source of income so that I can quit my job?
You can use the income from this whatever way you want. I have two key points of caution though:
- If you pull money out of your profits, it’s going to dramatically slow down your path to serious financial wealth. Try messing around with the calculator to see what I mean.
- This is a high risk, high reward investment vehicle. If you are relying on this system for your day-to-day income, what’s going to happen when the account goes into a drawdown? During the drawdown period, not only are you not earning income, but your account size is going backward. I can say that for me, it would be very hard to survive the drawdowns if I needed to pull my paycheck out of those funds. Drawdowns are a necessary part of the game with these portfolios.
That said, it all depends on the amount of money you’re putting in your account and how much you’re pulling out. If your account size is $200k and you’re only pulling out $50k per year for income to replace your job, then it’s possible any of these portfolios could serve as an excellent vehicle for replacing your job. It’s still risky!
Do I have to meditate to use this service?
Absolutely not! No way. I meditate and it has helped me tremendously with gaining the wisdom to help me withstand the emotional turbulence that can come up with trading. It has also helped me a ton outside of trading with appreciating the basics of life. But you are not required to do it at all. I am extending a helping hand if you want to invite the idea into your life and think I can help, but you can completely ignore everything I say about meditation if you want.
Can I use my IRA to do this service?
Yep, you sure can. If you want to use the automated systems, you’d have to set up an IRA futures account at TradeStation. Once you do that, you can transfer your IRA funds there and you’ll be set to go.
But if you have an IRA account with another brokerage and you don’t want to move it (and they allow futures trading), then you still can do this service with your IRA. You will not be able to use the automated system. Instead, you will have to follow my alerts to manually execute the trades. My alerts typically will come between 1pm and 3:30pm Pacific Standard Time when there is a trade.
Do each of your portfolios use the same strategies?
For the most part, yes. The main difference between the portfolios is the rate of compounding. There are some slight differences though in strategies.