Program(s) Developed: RC Advance, RC Success, RC Swing and RC Miracles Systems
Interview Date: August, 2004
Interviewed by Martin Lembak, Striker System Analyst
Martin Lembak: Hello Rickey! Please tell our readers a bit about yourself. What led you to develop S&P 500 futures systems, and how did you get started?
Rickey Cheung: Sure! I have been trading various futures markets since 1985, and roughly 10 years ago I started focusing only on day trading the S&P and S&P e-mini contracts. Like most beginners, I lost money when I first started, but I didn't give up and I took my experience as a lesson to learn. After years of reading, researching and working with models, I began to trade with success. As I am based in Hong Kong, I have had to adjust my lifestyle to be awake during the market times in Chicago, but the reward of successful trading has made it all worth it. In June 2002, I eventually developed a good trading strategy that leads to consistent winning in day trading the S&P. At this point, I began to think in terms of being a System Developer, which I am today.
...I owe a lot to Dr. Brett Steinbarger, who has a background in the psychology of trading. He encouraged me to write down my trading system, code it, and become a developer. Thanks also to Peter Poon, a fellow Hong Kong-based trader, for his encouragement and personal advice. And, finally, the work of Mr. Nakayama in Japan has been a big bonus because he has a developer's mindset, and he has been a big supporter in RC logic and RC models. Today, because of these three men, I'm proud to be one of the few emerging System Developers in Asia known throughout the world. Trading systems are not common in Asia, and I spend time teaching traders about the concept.
...I would also like to thank the following persons who has given me great support in developing RC models: Rowena Chan, TL Kitty .
Martin Lembak: You have developed several systems. Tell our readers a little something about each of them.
Rickey Cheung: The most popular models are named RC Success, RC Advance and RC Power. RC Success is more aggressive, RC Advance is moderate, and RC Power is conservative. My models suit different traders' needs. All RC Models have robust and forward looking inherent characteristic indicators. After the models are written and put to the test, all the above criteria need to be verified to ensure good systems as in all RC models. This means no curve fittings at all. Interested parties can visit my web at rc3200.com.
Martin Lembak: What software platforms are RC Models using?
Rickey Cheung: RC Models use Tradestation, and are written in easy language protected by DLL files.
Martin Lembak: What do you think is the real edge of your RC Models in comparison to other systems?
Rickey Cheung: The real edge of RC model is the RC Indicators which measure the intraday strength and weakness of the market, and act accordingly. It is NOT based on the past winning patterns that most systems incorporate. Most systems trade on past patterns (a few days or longer), whereas my systems have forward-looking characteristics.
Martin Lembak: If somebody is interested in your systems, what are the possibilities? Are you selling or leasing systems, or both?
Rickey Cheung: We offer our systems through Striker, because Striker is not in the system development business, and is not a CTA. This way, we are comfortable knowing the Striker will protect the secrets of RC Models. What caught my eye about Striker was the "No-Conflict" broker message on their web site. Moreover, I appreciate that the brokers and employees at Striker allow no house trading, so they have eliminated the conflicts-of-interest issues. And, I have to say, it is delightful that Striker has team member Linda Song, from China, and team member Eiko Izumi Gallwas, from Japan. Striker's unique because my customers can get support in Chinese and Japanese language this way! So far, RC has a small client base, as we have only leased a few copies to customers who are qualified. The truth is that we are afraid of hackers. Many trading systems have been hacked, and the only and best way to protect my interest and user interest is not to email out any models. This will have long term benefit to the model performance.
Martin Lembak: Rickey, we have end of July and at Striker RC Success system is up 32.25 points, RC Advance is up 39.75 points and RC Swing is up 41.50 points since March. Based on initial recommended balance RC Advance system is up 38.81% since March 2004. This is quite impressive. How do you see it ~ are you happy with the performance of RC Models?
Rickey Cheung: Thanks, I am happy when all RC models perform well, and it is important that all clients make money over time. RC models developed with my ten years actual trading and researching particularly for S&P futures market. I believe RC models has sound logic and winning strategies. My models are not statistic based, and instead they are designed to detect "real trend" during intraday market. Winning consistently is the goal. It follow the "real trend" and not just the "price trend ". This is a big difference, and I welcome any questions for those reading this interview to explain this critical point. For example, if the price trend goes up few points in the market, and if RC model detect it is real trend, then it will LONG with profit. But if RC models detect it is not real trend, and the real trend is down, then RC model will short. Price trend may reverse very fast as it has nothing to support it. For RC model detect real trend with RC indicators. This is why many users find RC models win together with other available good models in market. And many case, RC models is the only model doing well, when most others are doing poorly. This is the difference in detecting the real price trend, Not just the price trend by breakout or pivotal point or moving averages. This is the winning edge that we can deliver. So RC models will continue to bring consistent profit to user, and Iím happy about it.
Martin Lembak: You have recently released a new model called RC Miracles. Helping launch this new product, Chinese actress and famous singer Chan Chau Ha has produced a song for RC Miracles. Produced in English RC Miracles song can be tuned in by visiting www.rc3200.com . This model is supposed to be the best of all RC Models based on hypothetical performance numbers. Do you believe RC Miracles will beat other RC Models?
Rickey Cheung: I believe RC miracles will be the number one day trade S&P system in the world. It has more winning strategies than all other RC models. Time will tell!
Martin Lembak: Is there a message you would like to convey to our readers?
Rickey Cheung: Trading is challenging, interesting but difficult. There are always only 5 to 10 % consistent winning traders in this negative-sum game. I think this also applies to trading systems, that only 5 to 10 % trading system can win consistently. If one does not have a winning edge, one should not trade. With my growing reputation, I have offered private, one-on-one classes to students in Asia, and have charged them between several thousands of dollars for my knowledge. My students are all active and successful today. I demand that they be honest before I teach them, because I'm very aware that I probably charge the highest tuition for a one-on-one trading seminar in the world. I'm happy to share that all my students are doing well today, and that they are pleased. And, now as a System Developer, I hope more people can benefit from my systems and hopefully, profit!
Martin Lembak: Thank you Rickey, and good luck with your endeavors. We are going to end this interview by a quote from John Hill. Your systems are currently being reviewed by Futures Truth magazine, and your web site has a quote from John Hill, President.
William Gallwas, Vice-President Striker: Hello John. I understand you have been following Rickey Cheung. We have been trading his models with actual trades here at Striker, and the systems, particularly RC Advance and RC Success, show promise. What is your impression?
John Hill, President Futures Truth: Rickey was an unknown entity a few years ago on my radar, but today he is emerging with some promise. His models are good, and his technology is unique. The back testing is good, and I think Rickey is someone to keep a good eye on.
This interview is for informational purposes only and is not intended to be
a solicitation of any kind. Trade only with risk capital. The risk of
trading can be substantial and each investor and/or trader must consider
whether trading systems are a suitable investment.
There is a risk of loss in trading. It is the nature of commodity and securities trading that where there is the opportunity for profit, there is also the risk of loss. Commodity trading involves a certain degree of risk, and may not be suitable for all investors. Derivative transactions, including futures, are complex and carry the risk of substantial losses. Past performance is not necessarily indicative of future results. Please read additional risk matters on our web site, www.striker.com. It is important you understand all the risks involved with trading, and you should only trade with risk capital. This communication is intended for the sole use of the intended recipient.
About this report The information and links on this website are for informational purposes. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). Striker is registered with the Commodity Futures Trading Commission ("CFTC"), and was formerly registered with the Securities Exchange Commission ("SEC"). Additionally, Striker is a former member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure.
The trading performance cited throughout our web site is based on actual trading history, unless otherwise noted. The starting account balance is based on the system developer recommendation. Striker tracks actual performance by recording and maintaining each trade ticket for each system generated. The performance information assumes that no additions or withdrawals have been made. The rate of return for all systems disclosed in the Striker Report is cumulative from the day the system actually started trading at Striker. We maintain a "life" track for all 3rd party systems. We do not necessarily base our records on any particular client account. No one particular customer has achieved these results. The percentage returns reflect inclusion of commissions and fees.The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not a client takes all signals for a system) in the specified system and money management techniques.
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