Guy Cohen - Illuminati Trading System

Hi Guy,

Thanks for your in-depth reply, very interesting reading.

It would be nice to hear from some of the previous posters who were using Flag Trader to see how they're still getting on with it, as this thread has gone very quiet recently.

Cheers

Hi Gimmepips

Feel free to contact me by email.

Something else I can mention now.

We are adding to our range of technology that sniffs out the "in-the-know" trading activity.

The OVI is already a significant tool which we may now be able to improve significantly in the coming weeks.

Added to that, we're also going to release a volume tool that scours the market for unusual/abnormal volume patterns both daily and intraday. This has been a significant weapon for the likes of Bill O'Neil and other highly successful breakout traders over the years.

Furthermore, we may have found a way of improving our knowledge of buy/sell options activity.

Believe me when I say that in trading, the tail wags the dog. In other words, the options markets will often lead the stock market. This was first highlighted in the 1987 crash, but more recent university studies have confirmed this as well. Sure, the markets are more efficient now than they were in the late 1980s/early 1990s, but the quick, smart and big money still finds a highly lucrative sanctuary in the options markets.

Studies showed that ANNUAL returns of over 60% were achieved in a 12 year study period (compared with 12% for the general stock market in the same period). This was achieved by measuring unavailable options trading data where the quants were granted access to specific buying and selling options volumes. By that measure, they constructed a portfolio of buying the 20 most bullish stocks (according to buying and selling options volume) and shorting the 20 most bearish by the same measure. The portfolio was adjusted weekly according the ratios alone.

The trick in all this is (a) having the data in the first place and (b) knowing exactly where to look. For the general investor this has been a pipe dream, but this is exactly what I've been honing in on, and want to make available.

It's also worth bearing in mind that the returns quoted above were for an institutional type portfolio with zero leverage. The portfolio was adjusted weekly due to the ratios, not the price activity of the stocks themselves. The private investor would therefore do much better because our adjustments would be made by price activity, and would not be constrained to an arbitrary weekly cut-off date. Furthermore, we could use leverage, even if it was conservatively done (say through Deep In the Money options).

So, I hope this is interesting to anyone who's reading.

The idea is that we're going to implant our new scans into Flag-Trader and relaunch it as a much more powerful tool than before. We've had a number of huge successes with Flag-Trader and I've not heard of any disasters - mainly because our trading plans don't allow for them.

But moving forward, we can be a lot more discerning about the flags we take and those we pass on.

Exciting times ... and a lot of work for me right now!

Bye for now

Guy

After exchanging a few emails with Guy, I decided to re-join Flag Trader, and within the first 2 weeks, I managed to find 8 good opportunities with the software, 1 of which lost, but the other 7 all hit the 1st profit target. Most of them are still running, one was stopped at BE on the second half. One of the trades currently has over 1700 points profit running, which is over 1:4.5 R:R, which is not bad by anyones standards.

It took literally 30 minutes a day to find the trades, and make sure they tick all the boxes on my checklist.

The stocks the software found for me were;

MFC - Nice trade
UNTD - Ditto
VMC - Not great, but still profit
APOL - Hit first PT, stopped at BE on 2nd half
ESI - What a beauty, 1700 pips on second half running
LEAP - Loser
POOL - 1st PT hit, close to being stopped at BE on 2nd half
PLXS - 1st PT hit, running.

Trading like this is great when the markets are breaking out nicely and then trending, as these stocks have mainly done. Just look at ESI, shame they're not all like that one!

When I previously bought the system, I couldn't find many opportunities as the markets were swinging wildly, but to be fair, this is what Guy has said all along, and at the time he was telling me to be patient.

The key is that this way of trading keeps you safe (or out) when the markets are choppy.

This time around I was lucky to rejoin at a time when the markets are behaving nicely, and now I have a much better understanding as to how and why this approach can work.

So, not too bad a start, and I'm hoping it'll continue.

Thats because you are dealing with a great trader called Guy Cohen who has a very good well thought out method and he is totally committed to giving a quality product that works. The people on here have posted some really good stuff even guy himself.

Hi Everyone

I hope this doesn't sound too pitchy (so apologies in advance!) but I wanted to mention that I'm holding a workshop on 27 November at the Heathrow Novotel, where I'm going to reveal a new indicator which is based on options transaction data. The indicator is based on proven academic research that was commissioned by an exchange. It's unique and at the very least you'll enjoy Video 2 where I preview it.

If you'd like to know more about the event and what you'll learn (and receive on the day), please watch these three videos.

Video 1:
http://www.guycohen.com/uk/theinformedtrader/rubik01

This is just a few minutes where you can watch me solving the Rubik Cube and try to keep up a conversation at the same time! The message is that trading is a formula, just like the cube.

My formula is based on sound and accepted principles of plan wrapped around breakouts. The added twist I have is my options transaction indicators that give us a very good idea of when "informed" traders are accumulating positions in advance of the breakout.


Video 2:
http://www.guycohen.com/uk/theinformedtrader/rubik02

Video 2 details what you'll learn at the event. Please allow the video to buffer as it's around 27 minutes and is more like a webinar.

By attending the event I'm giving everyone a full year on the new updated FlagTrader. The new release will include TradeFinders for the "informed trader" indicators.


Video 3:
http://www.guycohen.com/uk/theinformedtrader/rubik03

This is the link from which you can access the event, and a reminder of what you'll receive. As well as Flag-Trader I'm also including 2 free months of my Private Traders Club membership, which you can elect to extend to 4 months for $1 per month at the event. A year ago we did this and everyone opted for it and over 80% are still in.

My events are always fun and informative. And unlike others, it's not an upsell fest, that's why I give you Flag-Trader just for attending.

Ok, enough of the pitch ... hope to see some of you.

All the best


Guy

Dear Guy
This is my first ever action to invest in the shares and my budget is between £500-£1,000 to start with. I am fairly risk averse and that's the reason.
Regards
Syed

Hi Syed

It's fair to say my approach is risk averse, but you're a tad on the low side with your starting capital.

We've had great feedback from folks who started low - one guy turned £2k into £20k in a year, but he had another £2k in a bank for backup. Either way his performance is impressive, but I think with £500-£1,000 you should be patient and build up that base first and then get in touch again.

In the meantime if you want to know more about my approach get my book "Volatile Markets Made Easy". It doesn't cover the OVI etc, but you can also get some info on that via my blog on www.flag-Trader.com, though please note that in the next couple of months, my blogs will be ported over to www.privatetradersclub.com.

Hope this helps ... be positive in the meantime and build up your base.

All the best

Guy

Hi Guy
I am see that you read this site so am going to ask you my question here! Hope that is OK. I would think that the market is NOT behaving itself at the moment, so is this not such a good time to get in on Flag trader? I am interested and not cynical, but want to explore workable systems whihc it sounds as if your system is!! (not being rude, just cautious)