System Developer, CA Systems Trading
Program(s) Developed: The CA Systems
Interview Date: January, 2008
Interviewed by John F. Gallwas ? Founder of Striker Securities
This interview is with a system developer ("Dr. Emini") who wishes to remain anonymous because this individual is also a full time trader. The trading programs offered by Dr. Emini are black box counter-trend systems that are ranked at various points on the risk scale. These counter-trend programs, by definition, have little correlation to the S&P Index trends and, as a result, fit into the 'alternative investment' category.
Dr. Emini, was an active trader in college, and after graduation in 1992, traded securities professionally until the S&P e-mini futures market attracted Dr. Emini's attention in 2001. Dr. Emini is a sole proprietor of CA Systems Trading and neither Dr. Emini nor CA Systems Trading has any financially affiliation with Striker Securities, Inc., or with any other organization.
John Gallwas: What led you from trading securities to focusing on the e-mini futures markets in 2001?
Dr. Emini: Besides the 24 hr access to the market and tax reporting simplicity, trading futures has many advantages over securities, like lower starting margins and better use of capital, which were very appealing attributes to me. As you know, day trading securities many times a day requires at least a $25K account which raises the bar for people who are interested in day trading.
John Gallwas: How do you define "counter-trend" trading and why do you believe that this methodology is ideal for the e-mini futures markets.
Dr. Emini: In my opinion, in 2008 I expect to see a tug of war between Bulls and Bears' split opinions on issues such as the current dilemma in housing, inflation and financial sector vs. the good sides like strong consumer spending, positive job market plus support from the overseas consumers. There will be many opportunities to trade in a mixed market scenario. "Counter-trend" trading is defined as trading against the current existing intra-day trend and taking a profit after the market do a quick reversal. As many traders have experienced the markets do make many up and down swings intraday, creating the opportunities to make profit from these big intraday swings. Days like these are very common when different well known companies reveal good and negative news about themselves, thus creating a mixed market. Often times, government releases economic figures often paint a mixed picture about the overall market outlook as well. Also, many books have studied the market and prove that market do spend a great deal of time going sideways. This type of market environment is where CA Systems Trading counter-trend programs are designed to perform well. Enough filters are built in the system so that it will not trade in big trending days. Trending days are traded by my 'CS' series systems which trade in the afternoon and they both compliment each other well since 'CA' focuses primarily in the morning. An investor can maximize their capital with CA systems trading in the morning and CS series trading in the afternoon.
John Gallwas: Why do you offer six different trading systems in your CA System Trading Group?
Dr. Emini: I feel traders have different risk levels as some likes to trade only when they feel the probability is highest in their favor while some traders want more trading action and accept less certainly before committing to a trade. CA system also has 2 components where 1 contract will trade less often and wait for all the right signals before taking a trade. CA 777 has performed remarkably well but it is for traders who can accept the possibility of a higher drawdown.
John Gallwas: What can you say at this point in time about your various trading programs "track records" and your expected risk adjusted rate-of- return?
Dr. Emini: The track records have been favorable so far as the Striker performance report already suggests. Because I have been trading these systems in my own account for quite some time now, the real time executions and equity curve recorded at Striker are in line with the previous performance. Also, based on my view, the system has good risk adjusted rate-of-return. As I do not publish hypothetical results or even have a website to promote my systems, I recommend investors to study the statistics that Striker has put up in the performance report on each systems being offered and compare.
John Gallwas: Investors are increasingly utilizing Alternative Investments as a supplement to their existing traditional holdings of securities. Why would your program be a good fit for someone thinking about adding futures to their portfolio?
Dr. Emini: Very simple- diversification is important. In my opinion, unless you are a super talented stock picker who can consistently picks the >20% winners in securities, my systems? results so far as proven to be a superior choice. If an investor stays with securities, they better know which sector to invest in with all the problems we see now in the financial and housing sectors. Besides requiring a much bigger account, I believe a great deal of diligent research and luck is required in trading securities. Trading futures using system trading saves an investor valuable time and provides a diversified approach to investing.
John Gallwas: Is there anything else you would like to share with our readers at this time?
Dr. Emini: In my opinion, based on LIVE trades so far, CA systems group offers a good option/alternative for those who are trading a trending system now and want to diversify their funds so their equity and account will not be restricted to perform well only in trending markets. History has proven that trending systems are more favorable in extended trending periods such as the internet bubble Bull markets era (1997-March 2001) and the post 9/11 Bear markets up to around 2003. The chances of these trading conditions to return soon are slim. In the current market condition, we have to be more flexible in our trading and adapt our trading method accordingly so that we can make profits in a consistent manner. To me, a diverse portfolio consists of a combination of trend and countertrend systems make sense. I think investors should review and adjust their portfolio so their current system portfolio can match their own risk/reward preference while maximizing the capital potential so they will be rewarded in 2008.
I want to take this opportunity and introduce my CA/ CS systems to investors and a $25/emini per month fee will be offered for 3 months signup for those who join until the end of January08. After this intro period, normal rates will resume.
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.
Striker is a revolutionary concept in action: an international, professional team of brokers dedicated to trading only for clients. It bears repeating: unlike most other brokers, Striker does NOT trade futures for itself or any of its employees. This policy has been in place from the start in order to guarantee that our entire focus remains on the interests of our clientele. Striker believes that when brokers are allowed to trade for themselves (or have in-house trading practices) there is a strong potential for conflict of interest, as the broker may place more importance on his own trading activities (or that of his firm's) than on those of his clients. Finally, Striker has no financial ties to system developers, so there no bias or pressure on how we report the actual trading results posted in our client section. This section is designed specifically for Striker's clients, so they may audit their results on a daily, weekly, monthly, or annual basis.