Futures, commodities, currency and options trading involves a substantial degree of risk and may not be suitable for all investors.
Past performance is not necessarily indicative of future results. This website provides only training and educational information. And by accessing any information of the Running Alpha Investments, Inc. site you agree to be bound by the terms of service and acknowledge the risk of trading as discussed below.
Thus in order to comply with all applicable rules and regulations please be so kind and read the Disclaimer Below:
Running Alpha Investments, Inc. and support staff, associates, and/ or affiliates is not an investment advisory service, or a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysis and employees or affiliates of this Company may hold positions in stock, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities , futures, derivatives, or currencies and commodities. This company, the authors, the publisher, and all affiliates of company assume no responsibility or liability for your trading and investment results. Factual statements on the company’s website, or in it publications, are made as of the date stated and are subject to change without notice.
NOTE: Any references to corporations or specific parties or entities are NOT statements about their fundamental value, balance sheet condition, or their operational stability; but rather, opinions expressed are solely a high conviction and calculated judgment based on the potential tail-risk and basis risk associated with the share price of the company’s ticker symbol. Our statements are derived from mathematical functions of market sentiment, as observed through the lens of human market perceptions (of risk, momentum and volatility change), which incorporate the behavioral biases of market participants and their demographic makeup across different trading time lines—when it comes to risk-taking and profit seeking. In no way should the research intelligence and or video alert (or any alerts, broadcasts or updates given by Efrem Running Alpha Investments, Inc and or Running Alpha Investments, Inc. or any of their associated companies and/or entities) be taken as a recommendation for action to buy and/or sell securities of any kind. In addition, this is also are not a solicitation for investing in securities of any kind. This video is strictly for research and informational purposes.
It should not be assumed the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by company are not indicative of future returns by that trader or system, and are not indicative of future returns which may be realized by you, In addition, the indicators, method of analysis, strategies, columns, articles , videos and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the information in making any investment. Rather, you should use the information only as a starting point for doing additional independent research in order to allow you to form you own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY 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 PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The testimonials in this site may not be representative of the experience of other clients. The testimonials are no guarantee of future performance or success. These are not paid testimonials.
Any of our advertisements employing an endorsement reflects the experience of an individual or a group of consumers on a central or key attribute of the product or service should not be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product in actual, albeit variable, conditions of use. We maintain all of our endorsers may have limited applicability of experience to what consumers may generally expect to achieve. Performance results described by any endorser are non-audited and should not be considered representative of what consumers will generally achieve with the advertised product in actual, albeit variable, conditions of use.
Beware of Websites Selling Commodity Trading Systems that Guarantee High Profits with Minimal Risks. The United States Commodity Futures Trading Commission (CFTC), the federal agency that regulates commodity futures and options markets in the United States, has witnessed an increase in the number of Internet websites fraudulently promoting commodity trading systems and advisory services. Among other things, these websites falsely claim that advertised performance results are based on real trading when, in fact, the results are based on hypothetical trading. The CFTC urges you to be skeptical when promoters of trading systems and advisory services claim that their products and services will earn high profits with minimal risks. You also should be forewarned that systems which trigger frequent trading signals as part of a daytrading strategy can result in substantial commissions and fees.
NO TRADING SYSTEM CAN GUARANTEE PROFITS
Commodity trading systems typically are computerized programs that signal members of the public when to buy and sell commodity futures and options contracts. Systems produce buy and sell signals based on mathematical formulas and are typically based on technical analysis of trading data (trading volume and prices), as opposed to fundamental analysis (analysis of economic factors such as supply and demand). Trading systems that are based on technical analysis attempt to predict future price movements based on historical prices, price relationships and price trends. In deciding whether to purchase a particular trading system to trade commodity futures or options, members of the public should remember that no commodity trading system can guarantee profits. And, whether or not a trading system is used, commodity futures and options are typically high-risk endeavors.
HYPOTHETICAL TRADING RESULTS CAN BE UNRELIABLE
Many trading system promoters advertise their systems by reporting hypothetical trading results. Hypothetical trading results typically are based on trading simulations using historical price data or simulated “real time” computer trading. To obtain these results, trading system promoters typically pretend that they traded futures contracts at market prices that occurred some time in the past. They then calculate the trading results that these purported trades would have achieved had they been placed, based on actual historical prices. These results often show impressive trading results and large net profits with only a few, small margin calls.
Whether based on historical data or simulated “real time” trading, hypothetical results do not reflect the results of any actual trading. In other words, there is no actual futures account, no actual investment, no actual trading, and no actual profits. The results are purely the product of simulation.
Hypothetical trading results have several inherent limitations:
20/20 Hindsight with Historical Results — Since the trading systems that produced the results were not actually traded under real market conditions, the purported results fail to take into account market circumstances that affect traders and their decision-making process, such as anticipated news events that could have an impact on the supply, demand or price of the commodity.
“Real-time” is not Real — When marketing trading systems, some promoters claim that their systems have performed successfully in “Real-time Trading.” “Real-time Trading” only means that the system has been tested using a live data-feed, rather than being tested using historical market data. In “Real-time Trading,” however, no trades have actually been placed in the market. Performance results based on “Real-time Trading” are merely a form of hypothetical results, with the same limitations.
Financial Limitations — Hypothetical results may not adequately take into account the ability of a trader to absorb trading losses or to meet margin calls. Trading systems assume that the trader can withstand all losses generated by the system and can meet resulting margin calls. It is much easier to absorb a trading loss on paper (hypothetically) than to do so in reality. Many traders find it unacceptable to sustain several consecutive trading losses and/or margin calls. Moreover, in an actual trading environment, a trader’s financial condition may change over time and affect his or her ability to continue following a trading system.
Not Tested Under Real Market Conditions — Hypothetical trading results assume that futures contracts have been bought and sold at specific prices. Since these assumptions have not been subjected to actual market conditions, they may overestimate or underestimate the performance of a system. In addition, some market conditions may make it impossible to execute a trade. For instance, many systems assume that stop-loss orders will be executed at their stop price. Under actual market conditions a stop-loss order might be executed at a better or worse price, or not be executed at all. Further, actual market conditions include bid/ask spreads which might not be reflected in the prices used in hypothetical trading. Moreover, the actual execution of a trade could impact the price paid, especially in less liquid or illiquid markets.
Possible “Rigging” of Results — A member of the public should be alert to the possibility that the system promoter manufactured results by selecting historical trades that would have yielded the greatest returns.
Trading and System Costs — The profit claims of promoters may fail to take into consideration the cost of purchasing or leasing a trading system. While the prices of systems vary, many are sold for thousands of dollars. In addition, most of these systems require that the user obtain a data feed from a vendor. System promoters may also fail to take into consideration the impact on profits of commissions and fees charged by brokers in connection with futures and options trading. Such commissions can have a substantial effect on profitability, particularly when the system generates frequent trading signals. A user should take all of these costs into account because they raise the break-even point in trading.
Because of these limitations, CFTC Regulations require that the presentation of hypothetical trading results be accompanied by a specific cautionary statement warning of the inherent limitations of these results.
FUTURES CONTRACTS ARE VOLATILE AND RISKY
Persons considering trading commodity futures or options should educate themselves about futures and options and realize that they may lose large sums of money. Remember: “If it sounds too good to be true, it probably is too good to be true.” The following checklist should help consumers in deciding whether to use a trading system.
IS A FUTURES/OPTIONS TRADING SYSTEM RIGHT FOR YOU?
- Do you have the financial ability to sustain trading losses and meet margin calls? When trading futures contracts on margin, you risk losing much more money than the initial margin amount. If the market moves against you, you may be required to pay additional funds. The use of margin creates potentially large exposures to loss.
- Can you lose your entire investment and more without a change in your lifestyle?
- Do the trading results sound too good to be true?
- Are the advertised trading results based on actual trading or “hypothetical” trading?
- Has any trader used the system in actual trading? If so, how has the trader fared?
- Will the system promoter provide you with independent verification of the claimed trading results?
- What is the total cost of the system?
- Have you factored into your purchasing decision the impact of commissions and fees that can result from frequent trading?
- What are the additional costs (data feed, etc)?
Not all system promoters are required to be National Futures Association (NFA) members or registered with the CFTC. A call to the NFA (800-621-3570 or 800-676-4NFA) or the CFTC, or a visit to the NFA’s website at http://www.nfa.futures.org/basicnet/, can confirm the status of a particular promoter.
Have you checked with the NFA whether the system promoter has been disciplined by commodity regulators?
Questions concerning this advisory may be addressed to the CFTC’s Office of Public Affairs at (202) 418-5080.
Commodity Futures Trading Commission
Three LaFayette Centre
1155 21st Street, N.W.
Washington, D.C. 20581
For other consumer advisories concerning possible fraudulent activity in the commodity futures and options industry, click on Consumer Alerts.
The CFTC’s website also offers general information about trading in the commodity futures and options markets. For example, the CFTC offers brochures on-line, such as “Futures and Options What You Should Know Before You Trade” and “Glossary: The Language of the Futures Industry.” To obtain this and other information, go to the CFTC site map.
The Federal Trade Commission’s Advisory – Day Trading Ads: Cutting Through the “Bull”
Updated February 1, 2001
Finally, In Case You Were Not Clear About the Risk of Trading, this Summary of the Above is also Included:
RISKS OF ACTIVE TRADING:
All of the Strategies are Presented “as is”. Be careful when setting up full automation to make choices that fit YOUR risk taking ability.
You should carefully consider the following points before engaging in an active trading strategy or what is sometimes called “day trading”.
Active trading or day trading may be described as engaging in frequent purchase and sale transactions (at least several per week and, for some active traders, often numerous transactions per day) using systematic or strategic approaches.
* Active trading has a very high level of risk. Active trading generally is not appropriate for someone of limited resources or limited investment or trading experience of low-risk tolerance. You should be prepared to lose all of your funds that you invest in your trades.
In particular, you should not fund this type of trading with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses.
* Be cautious of claims of large profits from active trading. You should be wary of advertisements or other statements that emphasize the potential for large profits from active trading. Active trading may result in few or no profits, and worse, may lead to large financial losses very quickly.
* Active trading requires sophisticated knowledge of securities markets. Active trading requires in-depth knowledge of the securities markets and of sophisticated and disciplined trading techniques and strategies. Also you must compete with professional, licensed traders employed by securities firms and other knowledgeable, experienced and well-trained traders. You should have appropriate knowledge and experience before engaging in active trading.
* Active trading requires in-depth knowledge of your broker’s operations. An important part of executing active trading strategies is the quality and consistency of the order execution services you use. Whether you use the services of professional brokers or electronic systems, your success will be affected by their strengths and weaknesses and the methods and practices of the brokerage firm in executing trades. You should develop an intimate knowledge of these matters before you engage in active trading.
* Active trading may result in you paying large commissions. You pay commissions on each trade you make. The more actively you trade, the more commissions will increase your losses or reduce your profits.
* Active trading on margin or short selling may result in losses beyond your initial investment account amount. When you actively trade with borrowed funds, you can lose more than you originally placed as risk. A decline in the value of the securities that are purchased may require you to provide additional funds to avoid the forced sale of those securities or other securities or collateral in or for your account. Short selling as part of your trading strategy also may lead to large losses, because you may have to purchase a stock at a very high price in order to cover a short position.
* You may sustain a total loss of the funds you deposit with your broker to establish or maintain a position in the commodity futures market; and you may incur losses beyond these amounts! If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.
* Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit (“limit move”).
* The above is not a complete list of the risks in trading. And you should further consult your broker concerning the nature of the protections available to safeguard funds or property deposited for your account.
THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY AND FUTURES MARKETS.
In summary, active trading is not a game. It is not recommended for inexperienced traders or for persons who do not have sufficient resources and time to devote to their trading activities. Active trading is a serious commitment that should not be undertaken unless you are able to handle high risk and high stress well, and are willing to consistently adhere to objective and disciplined trading strategies and approaches.
This is not investment advice. Although Efrem provides macro-market and equity-focused consulting services to sophisticated alternative asset managers and boutique research advisories in Canada and Abroad, Neither Efrem Hoffman nor Running Alpha is a registered investment advisor. Under no circumstances should any content from this e-Mail and/or its website link(s) be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes – and only reflects the output of Running Alpha’s Market Intelligence. Mr. Hoffman and/or Running Alpha may have numerous positions within the market at any given time that are not disclosed of at the time of publication. All opinions expressed by Mr. Hoffman and/or Running Alpha are subject to change without notice, and you should always obtain current information and perform the appropriate due diligence before making any investment or trading decision.
All efforts are made to ensure that the information contained within the Running Alpha site is factual and accurate – however, neither Mr. Hoffman nor Running Alpha, under any circumstances, can guarantee its accuracy or those of its underlying sources.