he-shuhan

This week I interviewed He Shuhan a Spot Forex trader from Singapore who has a vast array of experience and an eclectic CV to boot. These days He Shuhan focuses mainly on Spot Forex, but started his trading career in 2001 and he’s traded almost everything, including Options, Futures, Commodities and Stocks. He’s also an expert in trading system development (fully automated and completely discretionary) and has an interest in investment analysis, planning, execution, computer simulations, philosophy and history.

When he’s not trading you’ll find him running his own brokerage or training dealers, investment bankers and central bankers as well as featuring in major state newspapers and on radio.

In the show He Shuhan reveals:

  • How he reads the markets using non-time based charts
  • The two things you need to do to become a successful trader (that you probably don’t want to do)
  • A free resource that will change the way you look at the markets
  • The indicator he uses to dynamically manage trailing stops

Your Episode Sponsor:

 

Recommended book

Trading in the Zone by Mark Douglas

Trading style

Technical Analysis, Scalping Intraday trader, Swing trader

Platform & Broker

Metatrader 4, FX Next

Interview links

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Transcript highlights

Cam Hawkins:

He Shuhan, tell us a bit about yourself, personally, and what first attracted you to trading?

He Shuhan:

I started trading when I was 18 years old. Previously I was taught by a trader from the USA who happens to be a famous guy who likes to grow Turtles. I started my first trading career in the pits at 18 years old. Trading my masters account in the Chicago Mercantile Exchange. The very first day I lost half a million dollars when I was 18 years old. That was when I was hooked. I was determined to make it back. And that’s where I was full time trading from then on. That’s how I began.

I came from a middle class family. I started working when I was 14 years old to support myself and my family. I graduated with a degree in Political Science and now I am also a writer. The interview me on TV, radio, newspapers and I sometimes adjunct teach at Universities (Mostly investment bankers and central bankers which is rare, because not everybody gets to teach central bankers). Particularly on risk management and some of the stuff Governments have to decide on such as interest rate decisions and stuff like that. I’m a fund manager by profession and I own a brokerage, but I’m mostly a fund manager by profession. The fund that I manage does not go below 7 digits and does not exceed 10 digits, that’s all I can say.

Cam Hawkins:

Can you give the listeners some insight into your trading? Your trading style, strategy, time frames, ave. trade duration, % winner’s, typical risk reward ratio… those sorts of things.

He Shuhan: 

First of all I trade with a non-time based chart. It’s actually a form of range bars known as Renko. It means to say, I don’t look at 1 minute, 5 minute, but I only look at charts that plot after a certain amount of ticks are formed. I swing trade and do intraday trading which is unusual for professional fund managers. My draw down which I can typically tolerate is between 1 and 5%. Seldom do I exceed 5%. And my yearly average gain is about 80-100% after the fund management fees. My typical profit taking is between 5 and 20 pips which is scalping intraday. I use custom technical indicators that I designed myself which really is no secret because after all it is a time series theory based on statistics. Namely Arima and Anova variance studies and linear regression studies. That constitutes the main component of my entries. By the way, my stop loss is seldom more than 10 pips. I trade in the foreign currency, Forex, markets. Spot market exclusively. I don’t trade futures, I don’t trade options. I use to but I don’t anymore. At least not with my flag ship fund. So I’m a pure technical intraday Forex fund manager. That’s what I do.

Cam Hawkins:

Can you tell us a bit more about Arima and Anova analysis?

 

He Shuhan: 

Think of it this way right. If you want to have a good trading system you want to be right in 3 things. Number 1 is Direction, which is the easy part because if you can use any form of indicators you are going to get a direction.  Not that hard. Number 2 gets harder. Magnitude, you need to know when to take profit, when is an optimal stop loss as well. Or else you’re going to look at your profits go to profits and come back to loss again. Or you’re going to get stopped out for no reason because your stop loss is simply too small. Or you’re going to get stopped out and have a very large loss but you don’t really need that much anyway. Then the 3rd thing and most difficult is Timeframe.  By when will the market go to which price? So, in order to do that you need to create what we call a Time Series Study with studies in deviations of variables. Think of it this way, look at a period of 10 years series data. Look at 10 years data on, let’s say, the EUR dollar. Or any instrument, S&P, the Dow, or any instrument you want to choose. 10 years data minimally. Then look at the way it fluctuates, historical swing. And that is actually what we call the variance. How much a variance, how many sigmas or standard deviations in variance of certain average/mean? And how do you derive the mean? You use a time series study. Some sort of moving average, with heavier weighting on the current data. It’s called Arima. There are many types of moving average, actually there are about 32 types of moving average in the world. Arima’s just one of them. So, you do a linear regression where you have the price up, up, up and lots of down prices. Lots of dots in the data form. Linear regress, find the best curve fit line, determine where is the best deviation and what do you get? You get a place where you can probably predict. You cannot predict 100% accuracy because there is no such thing. You can probably predict where the price is going to be at which moment in time. You can probably know the stop loss you need in order to capture the gain that you desire. You can probably also know, according to historical variancy, how much profit take you need to put so you don’t give back gains before you lose. That’s what I do. A very statistical/mathematical approach of course combined with the fundamentals which we’ll of course be talking about later, I guess.

Cam Hawkins:

How did you come up with that mathematical formula?

He Shuhan:

I derived all this myself because I’m someone who likes to think and I’m a very philosophical person. So, you begin with philosophy. My philosophy is: I want to have the smallest drawdown with the greatest gain in the shortest amount of time, which is what trading is right? Trading is about using the smallest amount of capital, smallest amount of risk, making the most amount of money in the shortest amount of time. Four criteria’s. So it beings with the philosophy and then with a philosophy you must have a hypothesis. To have a technical system like that, trading like that cannot reach at least 3 out of the 4 criteria’s that I set unless I don’t test them. Then after hypothesis it becomes theory, tested with real data. And after that it becomes theory, it becomes rule which forms into the trading system. So I developed all this by myself. Which is difficult for me because I did not even take mathematics in high school. I was the only one in the whole school who was forced to drop mathematics because I couldn’t understand what the math teacher was talking about. But when it comes to real working probability I’m very good at mathematics. Primarily because when I was in junior high, 14 years old, I took a subject called probability, and nobody was able to solve the question that was asked by the teacher (in the whole cohort) and I was the only one that could do it. That gave me confidence that that’s probably what I’m good at: probability.

Cam Hawkins:

How did you come up these steps to derive your system?

He Shuhan:

I’m primarily an Arts student. I studied English literature, like Shakespeare. I studied Geography, History but throughout all this I realized that’s where my shortcoming is, I’m not scientific enough to make analysis. For example, in Shakespeare, if you want to compare 5 princesses and a king, how are you going to make the correlation to predict what he outcome will be? You will need a mathematical set of tools. You can use algebra, you can use calculus you can use a lot of things. So in order to solve that arts question I was forced (and interested enough) to research on statistics. And when I researched on Statistics and I started understanding stuff I moved onto Physics, then I went deeper. I went into Quantum Physics and applied what we call the interdisciplinary approach to trading. So my trading comes from philosophies derived from Arts, Science, Physics, natural medicine as well. Put them all together and you get what I have.

Cam Hawkins:

Where did you educate yourself on all this topics?

He Shuhan:

Through books. Self-educated.

Cam Hawkins: 

What does your typical trading day look like?

He Shuhan:

I start on Monday at 5pm EST, which really is Sunday in the US when the Forex market opens. I will trade manually for a few hours and let my automated trading system take care of the rest. But this trading time will go all the way until about 3pm EST and I’ll sleep for 2 hours and I’ll wash, rinse and repeat this everyday throughout the year. So, I trade from 5am, my time, to 3am, my time, the next day. I just sleep for 2 hours a day formally and nap for 15 minutes 4 times a day.

Cam Hawkins:

In the beginning, what differentiated you from the average Ma or Pa trader out there? What traits did you have, what actions did you take?

He Shuhan: 

First, let’s talk about habits. The typical trader does not spend an immense amount of screen time of the computer. They’re not dedicated enough. So obviously, the amount of screen time correlates and causes the amount of success in trading you will have. Because if you want to trade my way, which is intraday. You will have a reflex action. You can’t think too long. You have to buy and sell in a flash. Right now you’re going to make a decision. Take it or leave it.

Second habit. I cut losses a lot. My accuracy is probably 30-40% out of 100. Out of 10 times I lose 6-7 times. But I still net overall because I cut losses very frequently on a small amount of loss which a lot of retail traders don’t because they simply don’t want to lose. This has something to do with the ways schools teach us in formal education. Because the school will teach you to try not to make mistakes again assuming that if you don’t make a mistake you’ll be better off. But in the market, it’s not so easy, there is no bell curve. Everybody makes tonnes of mistakes, even the best. So if you do not make mistakes that are small enough to not lose your entire capital, or worse off – what I do it wait until margin call. Then you will not be able to do anything successful.

Third thing. They try to use common technical indicators. RSI, Stochastic, MACD, CCI, Moving Averages blah, blah, blah.  But there’s a reason 95% of traders lose. Because 95% of traders are using that stuff. Do the banks use that stuff? No, they never use that stuff. How do I know that? Because I was in the bank before. They never use that stuff, they don’t. Things like Fibonacci, things like Elliott Wave, things like Dow Theory. The never ever, talk or use that stuff. But that’s all the stuff that is hot on the forums on the internet. The next cool indicator that can eliminate noises, eliminate losses 100% winning rate. Wish they do exist, but the question is: How much do you win when you win and how much do you lose when you lose? That’s what George Soros said. So, pay attention to that.

So, the third thing is phycology. Most traders have very bad phycology. When they win they have a winning streak. When they lose they spiral into self-destruction. There are tonnes of reasons for that. One of the most common reasons is that it’s only natural to be human. The natural human instinct does not make us good traders. Simple as that. We don’t like to lose, we only like to win. Most traders are not happy. They’re not happy when they lose, obviously. They’re not happy when they win, because they didn’t win enough. So they’re never happy. If you’re not happy you’re never in the zone. You’re never in the most productive stage of your life. You’re never going to be confident. You’re never going to be motivated to do this for long. So, naturally you lose.

Fourth reason. They’re quite conditional. They don’t have enough capital. They’re undercapitalised, so they use a few hundred dollars and try to trade 1 standard lot. Only to realise they are forced to use such a small stop loss they surely get stopped out before the market goes in their way. Or, they don’t put a stop loss and get a margin call. So easy, because you simply can’t be risking something like 1% off a $500 account. Which is really $5. What can you trade with $5? Nothing. So, if you’re undercapitalised you are in very great danger. Unless you’re accuracy is very high. Which it is in the system I shared with you right? That has a high accuracy. I gave it to you for free right?

Cam Hawkins:

So, for the listeners out there, He Shuhan has given me a system that I will trade in the coming month and I’ll share the results of the system based on my trading behaviour and the time I have to trade. So, look out for the results I’ll be posting on the site at the beginning of July. I’ll also have an episode about how that went. And maybe we’ll get He Shuhan back on the show to discuss the trades and his analysis of the results.

Just on your 4 points above, how did you pick up on all this? When you first started out, did you have a mentor or was it just self-education?

He Shuhan:

I did have a mentor but he did not really teach me anything about this. All he taught me was a very basic trading system based on a breakout indicator and channels, but I don’t want to talk about which channels because it’s really outdated. Don’t follow that.

He taught me about supply and demand in the market by making me plot charts by hand. Even plot moving averages by hand, without a calculator. So I had to calculate their values in my head and take graph paper and draw them. He also introduced me to things like time and scales, which is very important in the futures market and the S&P500. Which is where it tells about market demand and supply, what the big boys are doing, what the small fries are doing and how the strong money takes away the money from the weak hands. Before he could teach me more he passed away. The rest of the things I had to discover myself the hard way. What do I mean by “hard way”? When I was 21 years old I was a millionaire. When I was 21 and a half years old, not even 22, I had only 50c in my account because I lost everything I had in the markets. And this cycle went on 3 times before I hit 30 years old. So, I was a millionaire, bankrupt, millionaire, bankrupt, millionaire, bankrupt, three times in a row before I even hit 30 years old. That’s the way I learned it. I hope nobody goes through that but that seems to be the case now.

Cam Hawkins: 

When you were trading that money you didn’t think to withdraw half a million when you had a million in the account?

He Shuhan:

Yes, exactly. Because when you win as a youngster you think you’re God. You think you’re invincible and nothing can stop you. Then the greed kicks in, “If I can make a million dollars with $5000 in 1 year, I could be the next billionaire”.  That’s what exactly goes on in my mind. So I did withdraw money, but if I lost money I put the money back and tried to trade again and recover the losses. Basically, it’s a gambling habit. You can think of it as some sort of gambling habit.

Cam Hawkins: 

Is that what you were referring to earlier when you were getting these margin calls?

He Shuhan:

Yes, because one of the fallacies traders have is that they always complain: “If my account had more money I could have held this trade and it could have come back”. Could , would, should is what will kill you. The fact is I did have a large account, millions of dollars. And still the market can go all the way to get a margin call. Primarily, accelerated because I was doing Martingale strategies. I was averaging down the price. Which didn’t work, obviously. So, one of the things you really shouldn’t do is Martingale.

Cam Hawkins: 

You mentioned the banks don’t use the typical indicators and methods retail traders use. What sort of things do they do?

He Shuhan:

The banks operate on two types for the Prop trading which is really 5-10% of what it used to be in the past. Where a few years ago a junior trader could be managing $250m dollars, now a senior trader will be lucky to manage $50m. So, there are two types of way they do that. 1) Ultra high frequency dealing, what we call dealer broker. It’s what we call a two way price. First the client calls in and request a quote, they will muck up the price and try to sell it off to another person, making the spread in between. That’s what they do. The second type if the very very long term. They buy, they use fundamental analysis. They have the economists behind them. They buy and hold for years and years and years. There is no intraday swing trading. There is no inter week holding. There is no 4 hour chart, stuff like that. It’s either, you are very quick or very slow. That’s what the banks do.

Is there a better way? Yes there is. There are people like me who on a professional basis who do exactly what the retail traders do except that we use different tools. Except that we might be using non-timeframe charts for example. We may be using very small risk exposure or we are very well capitalised. So, there are some differences between a professional and a non-professional.

Cam Hawkins: 

If you were a retail trader working a day job, what 3 steps would you take to start earning an income as a trader?

He Shuhan:

First of all, run a demo and a live account side by side. If you’re demo is making money and your live is not making money do not every trade for a living. So keep doing the system improvements, keep reviewing your system almost every day. Is it sound, is it logical, does it work in a sense? Minimally after 33 trades, because you need at least 33-34 trades before you have statistically significant analysis of what happened. Then only when both this demo account and small account (when I say small, I mean really small, like $100, $50) are starting to make some money then you may consider going into this full time. Only if the sum that you can make can replace at least 50% of your previous jobs income. So, let’s say you were making $5000 USD a month in your day job and you had passed the first stage in your demo and side by side live account are both making money. You have to mentally make the cut to say I have to start up now with $2000-$2500 a month instead from trading. After you do that, then move onto professional trading by increasing your lot size. Then get an auditor to audit that account and look to manage other people’s money. That’s how you move from a man on the street to a successful retail trader, to a professional.

Cam Hawkins: 

Can you explain to the listeners your preferred trading strategy, the ins and outs of how it works and why you choose this type of strategy over others?

He Shuhan:

It boils down to philosophy. If you are a retail trader and you need to make a living. Can you actually use a 4 hour chart, can you? You mean you 4 hours, 8 hours, 12 hours before you get 1 signal? And if you get that one signal, are you going to bet very big on it? Because if you’re not going to be very big on it. Which is good, because you bet too big you lose. You’re not going to have income every few hours, every few minutes. How are you going to make a living from that? So, because of that, when I started out I decided to go very short term trading. As short term as possible. So, I made a few trades every half an hour, or every hour. Then when you go to the short term trading you have a problem. You have to use the 1 minute, 5 minute charts and stuff like that. They’re full of noise. One moment it goes up, the next it comes down. You don’t really know when to buy. The moment you buy it goes against you, the moment you sell it goes against you. You feel like an idiot, you feel like the market is trying to fool you. So, how can you do that? The only way you can do that is to eliminate the noise. How? Use non time based charts. Which means a chart that only plots when a certain X amount of price has moved so that it reflects the true movement of the price. Not the 1 minute, not the 5 minute, whatever. So, you don’t get a lot of noise. Once you eliminate the noise you’ll suddenly find a lot of indicators that you use to use on the time charts start to work better on your non time based charts. Even a MACD will look different. As a trader when I started out, I could not afford to lose a lot of money so my stop loss naturally has to be not that big, 5-10 pips or something like that. And as a fund manager, my SL cannot be too big as well, like 100 pips. Because my criteria, my mandate to my clients is I cannot lose more than 5% of draw down every year. Which I usually keep within 1-2%. So, your SL cannot be too big. Which mean to say your accuracy needs to be high. Which mean to say the earlier you buy the better, the earlier you sell the better. So you cannot have a philosophy where you have to wait 4 hours for the price to confirm before I buy in because you’re simply buying late. When I say that I mean no offence, but so called “Price Action Traders”, people who believe price leads the way, are also laggy. Why? Because you also need the buyers and the sellers to transact, then the price will form. But if you have fundamental analysis and technical analysis that will be able to guesstimate where they will transact before it forms your entries will be way earlier than most of the people and therefore you’ll don’t need to have a large stop loss and you make more money when you are right.

Cam Hawkins: 

If you split your trading up into technical vs fundamental, what would that split look like?

He Shuhan:

20% Fundamental, 80% Technical.

Cam Hawkins: 

Diving a little deeper on fundamentals, what 3 things would you recommend a novice or intermediate trader educate themselves on?

He Shuhan:

I have one thing to recommend, the subject of Game Theory. This will help you predict what the politicians are going to do, e.g. is Greece likely to be out of or in the Euro, which is applicable right now. This will help you predict if the Feds are going to raise/lower the interest rates. Basically, Game Theory is a mathematical form of predicting outcomes. There are a lot of free resources out there on the internet. I think there a site called gametheory.net or something. They even have free software you can use to calculate. It’s the only thing I recommend people read up on if they want to go into fundamentals.

Cam Hawkins: 

Diving a little deeper, thinking about any price chart, what 3 things would you recommend a novice or intermediate trader educate themselves on when reading a chart?

He Shuhan:

I recommend reading up on a concept known as Volume Spread Analysis but don’t use it because in certain instruments it isn’t reliable volume, e.g. Forex. There is no central exchange so there is no reliable volume to read from. But it give you a concept of what the big boys do and how they take away the money from the weak hands. So, study that. Which really is demand and supply. Then if you can look at them in the price action it’s not bad to. Then if you want to sort of automate it to an algorithm you probably need more advanced indicators that can read those things then buy and sell according to the rules. So, it starts out with a concept known as Volume Spread Analysis, but I said don’t use it as a strategy. Just read it and understand how it works and you’ll be off to a whole new world of discovery I guarantee you. Just go to Google, type Volume Spread Analysis Free PDF. I think there are lots of them.

Cam Hawkins: 

How long did it take you to go from trading newbie to consistently profitable trader?

He Shuhan:

6 months, but that’s not a fair assessment because I had someone to teach me. If you have a mentor it takes 6 months. If you don’t have a mentor it takes you 3 years minimum.

Cam Hawkins: 

What’s your mental approach to trading and what special techniques do you use to keep your emotions in check?

He Shuhan:

My mental approach to trading are the 4 things. I want to use the smallest amount of capital to make the greatest amount of gains with the smallest amount of risk over the shortest amount of time. If I don’t achieve any of those, because of my religion, I say it’s ok. So, I’m very relaxed and that’s something that helps me stay calm and staying calm is very important in making decisions.

Cam Hawkins: 

What’s your favourite entry setup?

He Shuhan:

I will follow the trend half way while it’s forming I don’t counter trend (buy very early or sell very early), the moment it forms too far away I will not get in. So my favourite entry signals will be half way entering the trend which means that I’ll look for a pullback and if the pullback fails I’ll enter with the trend.

Cam Hawkins:

What strategies do you use to exit and manage active trades?

He Shuhan:

I use dynamic trailing stops which is not liner. Because if you use say if it moves 10 pips I’ll move by stop by 2 pips, that’s not going to work because the market geometric. So dynamic trailing stops I use some sort of ATR (Average True Range) derived, which means it’s volatility based trailing stops to derive how much trailing stops should move every time the market moves in my favor and of course when the market moves against me the trailing stop does not move at all. That’s basically how I exit. I don’t exit with a pre-defined target, I exit using my dynamic trailing stop which is different from a lot of traders.

Cam Hawkins: 

What’s your recommended “must read” trading book?

He Shuhan:

Trading in the Zone by Mark Douglas.

Cam Hawkins:

Do you automate parts of your trading? If so, what have you automated, why and how does it help you?

He Shuhan:

The good thing about automatic trading is you don’t have to monitor and you have a lot of free time. The bad thing about it is you don’t have to monitor and you have a lot of free time. Why do I say it like that? The good thing is obvious, so let’s talk about the bad thing. If you don’t monitor how are you ever going to know if it’s working or not. What if it’s buggy, what if it has a lot of problems that you cannot foresee? And when you have a lot of free time you start to think about a lot of strange stuff in your head and sometimes you come to the market and you mess up your own signals. You intervene with your algorithm and you try to curve fit (make it better) for no reason and you actually spoil the whole system.

Cam Hawkins: 

If there was one thing you would recommend any retail trader spend the next month mastering, what would it be, why and how could they go about mastering it?

He Shuhan:

Two things. Find a good trading mentor that does not charge you crazy fees or even better for free. But if they are not lucky enough to find someone like that the best thing they can do is to commit to double the time they spend on the computer. Some of the people come back from work at 7pm, have dinner, spend time with their kids and start trading at 9pm. And they say, “I need to sleep I’m tired it’s 12pm”. The first thing you need to do is to convince yourself you cannot be like that. If you don’t commit the time you will not be successful. So you need to trade all the way to 2am instead. Will that effect your day job? For sure, but every trader spends a lot of time and so should you the newbie.

Cam Hawkins:

What trading related internet resource, like bloomberg.com, do you always use?

He Shuhan:

I just use one website. It’s just called ForexFactory.

Cam Hawkins: 

What’s the biggest mistake most retail traders make?

He Shuhan:

Trying to get rich in the shortest amount of time when they don’t know what they’re doing.

Cam Hawkins: 

What’s your preferred broker and trading platform?

He Shuhan:

I own my own broker, it’s called FX Next. My preferred trading platform surprisingly is Metatrader 4. It’s a very retail platform. Of all the professional platforms I have available I just use the retail one, Metatrader 4. Why, because it’s simple, that’s all.

Cam Hawkins: 

If there was one mantra or saying our listeners should reminded themselves of each day, to help improve their trading, what would it be?

He Shuhan:

“Live to fight another day”. It also means the market is there tomorrow. So if you have losses today, keep it small, don’t despair so you can come and fight back another day.

Cam Hawkins: 

Perfect! For those not in the know, my mastermind community are working towards creating a profitable trading system. If you’re not in the mastermind yet, just jump on 52traders.com and join today while it’s free.

So, He Shuhan, today your task is this:

We’d like you to help us find a high probability exit point for our trading system. We already have a market to focus on (namely the S&P500), and we’re looking for specific standard indicators, candlestick formations, market events, those sorts of things…

So He Shuhan, to help us pinpoint high probability exit points for our trading system what “3 golden nuggets” can you share with us today?

He Shuhan:

You just need one technical setup, it’s called Morning star / Evening Star candlestick patterns outside 2.5 standard deviations Bollinger Bands. So, when there’s an Evening Star (which is the one above), above 2.5 standard deviations Bollinger Bands, you short, you take profit in the middle line. You put a very very tight stop loss, right at the high of the candlesticks. That’s it, that’s the way you trade the S&P. At least that’s what I do. You don’t need anything else if you want to use the standard stuff.

Cam Hawkins: 

Before we wrap up what’s the best way for traders to get hold of you?

He Shuhan:

You can go to my website www.heshuhan.com you can search that in Google. You can search for my name in Google, there’s lots of articles about me to. You can find me on Linkedin, Skype, you can call my cell phone if you want to. You can find me lots of ways. Or you can talk to our dear friend here and he’ll be able to link you up with me as well.

Cam Hawkins:

So, remember He Shuhan has given me his system and I’ll be trading it for the month of July and I’ll be publishing the results here on the site.

Tell me what you thought!

Please feel free to leave a comment or question about the show in the comments section below.


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.

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You agree by using this site, and related sites of ours and any of our material content you may receive either from such site or in any other form and that, accepting our terms and conditions of purchase that you agree that you, and you alone, must ensure that the use of any of the materials purchased from our site in any manner or form at all, is in compliance with your national, local, federal, state or county laws.

CFTC - U.S. Government Required Disclaimer:

Forex, futures and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Our website, product contents, and materials are neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our website or in any materials. The past performance of any trading system or methodology is not necessarily indicative of future results. Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets.

Don't trade with money you can't afford to lose. Nothing in our course or any materials or website(s) shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.