Guy Cohen - Illuminati Trading System

Silence is deafening!

Andy,
I believe that I replied to you - please see post #63.
Rich

Oh I was just generalising about the lack of feedback from users of this new system, not getting at anyone. Thanks for your response. I am going to give the system a 30 day trial because I am curious about it and have not traded before so might like it. I do like working with computer systems and work in IT so might enjoy doing this as a way of building up capital.

Andy,
For what its worth, my understanding is that the new intra-day system (not FT) is not even in beta testing- as at start Feb. It would be very interesting to have some more info about it and how it’s performing from pjchalmers. However, I’m not holding my breath, Guy’s customers only manage at most two or three posts on the board before they seem to be snuffed out. I personally have this image of them all making so much cash they just have no time to drop by and post updates for the rest of us – I hope I’m right.

Rich – just not at the moment.

What I can't get is that Cohen says trading volatile markets is what this system does best at but his blogs stated (around about sep-oct 08) stated that the market was in a bad way and people would need to sit tight. Is this not exactly the ideal opportunities to use this or is it that he mean't 'bad way' as in they had just bottomed out?

He didn't say bad way specifically but it was words to that effect.

I also think you need to trade a bit more than he says (20 mins a day). Maybe you can once you have really mastered it but how do you recognise opportunities throughout the day - as we all know the market continually changes - and do all this in 20 mins.

Mind you he did state that sometimes you only have 3 or 4 top notch earning opportunities per week so maybe that is what he means. The crux of the system seemed to be that the system selects only the best of the best looking trades so you might only have a few per week or none at all.

Andrew

Andrew

From my experience the illuminati system is better suited to volatility as there is no bias to market direction. There just needs to be a fairly decent move either way to make a strangle options trade profitable (placed during earning's season).

After speaking with Guy and also having read those blogs it would seem that it is better for flag traders to have a clearer picture of the wider market direction (up trending or down) in order to know whether to favour bull or bear flags.

I want to thank the guys who were using the system and were kind enough to post their thoughts on here but it would be really helpful if they could give a quick update on things. If they are still trading and what are the markets looking like at the mo. Are the favouring bull or bear flags? Or are they staying out all together?

Cheers

Craig

Hi All, Has anyone spot and suspect that "pjchalmers" could be Guy himself or his representative OR Am I just paranoid? Plz dont asnwer this one "pjchalmers". Thanks and a bit of lol too.

Hi Andrew,
Illuminati Trader System
Please note I am not an options trader in anyway. I also currently have none of Guy’s Trading system (I’ve just read a number of books on the subject). My understanding from Guy is that now is not a good time for Illuminati Traders – as the market is very high volatile. Illuminati traders, trade options in the main and option prices are directly related to volatility. So I would say, because of market volatility options are currently over priced. So, it would be difficult to find a set up where a low risk profit can be made from them.

For instance, a key option strategy for any Illuminati Trader is to buy a non-volatile stock option (low priced) before a news event hits. Once the news hits, sell the now volatile option (high price) for a profit. Basically the aim is sell volatility to the market. This is impossible to do when the whole market is as volatile as a hive of drop kicked bees. So, I would assume that options are just over priced for, a low risk, Illuminati Trader strategies at the moment. This will eventually change when market back down.

Flag Trader System
There is a Flag Trading section in Guy’s original Illuminati Trader system(s). Which is where the standalone FT system evolved from. In Guy’s FT system spread betting is used instead of options. Market volatile appears to have a much lower impact on the cost of placing a spread bet. So FT is very much in play at the moment.
That’s my understanding fwiw.


FT's 20min a Day Claim
Guy’s FT system uses EOD data to generate a list of possible trades (bets). Lets say, in the evening you manually filter and evaluate the list (according to Guy in around 20mins - once you know what you’re doing). You then place your chosen bet(s) then sit back till next evening (alternatively if you wish you can or watch/interfere during the trading day – its up to you).

Your bet is either:
1, Not triggered. You loose no money – either close or roll over the bet.
2, Triggered then reverses and hits your stop. You loose your stop loss and any slippage.
3, Triggered then reverses and closes at or below breakeven but above your stop. You have a decision to make – either close for a small loss or rollover the bet.
4, The bet is triggered and closes positive for you. Your trade is winning and you have a decision to make – either close for a profit or rollover the bet.

So, very easy for a simple, single bet per-stock approach.

However, just placing bets in the Evening while perfectly possible would mean probably missing out on a number of trading opportunities:

Stock regularly gap up and down at the open. If this were to happen to one of your bets and it gapped beyond your trigger point it simply wouldn’t be triggered. Your bet wouldn’t be placed – no loss but no opportunity to make money either. To avoid this you may well want to watch the open to place such “Gapped” bets manually. I think this situation is explained in much better detail in one of Guy’s free videos on his web site.

Also manually adjusting trailing stops and early closing of more complicated multi-bet strategies would also probably require some level manual intervention during day. Again I think this is shown in one of Guy’s free vids.

I would say the bottom line is that the system can quite conceivable be managed just as Guy indicates. However, if it were my money on the line I think I would be spending rather more time watching. It is quite possible though that that time would be very unproductive and possibly even counter productive.

I hope the above helps

Please note none of the above is intended as a recommendation or approval for any of Guy’s (or anyone else’s) trading systems or other products.

Rich – I wish