striker report February, 2010 
   
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Striker Investor Notice: Beware of Cherry Picked Results!
As more and more successful independent traders learn to convert their trading ideas in to trading system code, we are seeing growth in the number of system developers in the industry. Developers launch web sites to display returns, which are often purely hypothetical in nature, or which are samples of actual data provided by brokers who may be auto-trading their code.

It's come to our attention that a number of online brokerage firms are touting better results in system performance than the actual numbers we post each day at striker.com. But these brokers are not using their own web sites to display trade-by-trade actual history. Instead, brokers are often selecting the best "actual sample" for a developer web site, or are posting anonymous claims in chat rooms. All of which leads us to ask: what data can you trust?

Here are some reasons why you should be skeptical of broker claims, and an explanation of how we have tried to establish honest standards at Striker:
  • Striker's results are actual, and the result of trading activity for our clients. We are regularly audited by the National Futures Association (NFA), who compares our trading tickets with the results posted on our website. But the most important audit comes from our clients each day as we post the results and provide entire life history of systems for our clients convenience in auditing. Some brokers or system developers may try to attract your business with hypothetical, computer-generated results; be aware that there is a world of difference between the real market and an idealized computer model. Some brokers post anonymous claims on chat rooms, but these same brokers choose not to provide actual history on their own web sites, in part because they would then be subject to an audit by the NFA (not to mention their own clients). Posting actual results is easy, so if you are auto-trading a system with another broker, ask that firm to follow Striker's lead. It is our opinion that clients should be empowered to audit what a broker executes, and the only way for this to be achieved is if the brokerage firm provides that information on a daily basis.
  • We do not cherry pick results to make performance data seem better than it really is. Occasionally, Striker's operations team will obtain slightly different results for different clients trading the same system or strategy at perhaps multiple clearing firms. Some brokers might be tempted to post on a developer web site the better of the two results when this occurs; we feel it is more honest to show the worst result. Thus our clients can trust that they did at least as well or better than the results shown on our page. Above all, our goal is transparency: helping clients to get an accurate picture of system performance over time. To this end we keep careful records of system performance which can be found in our client section. We include commissions in these track records.
  • We do not tamper with systems. Brokers may be tempted to second guess system signals in an attempt to improve results. While system tampering may sometimes pay off in the short term, it nearly always backfires, and in fact defeats the purpose of a system, which is to generate objective trading signals. We believe in executing system signals cleanly, accurately, and in a timely fashion.
  • We have no money on the table. Striker trades only for clients, and we have no proprietary systems. We do not have financial ties to system or strategy developers. Thus we have no conflict of interest with any given trading strategy.
  • At Striker, your interests come first. Trading futures can be risky, so why take on the additional risk of using a broker who is trading his own or his firm proprietary account? He may be more interested in his own money than yours. At Striker, our clients know their interests come first, because we don't trade futures for ourselves, and we have no house or broker accounts. If you are looking for objective data for system performance, log in to our client section at striker.com. We are the antidote to system hype.
In This Issue:
Featured Interview(s):
Stew Bishop »
President of FullHouseTrader.com
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Published at
Striker Securities, Inc.
940 N. Industrial Drive
Elmhurst, IL 60126, U.S.A.
(800)669-8838
(312)987-0043
www.Striker.com
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Copyright © Striker Securities, Inc. All rights reserved.
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.