Champion Trader

PMcDee

Newbie
1 0
Hi all, im new to the thread and also to trading, i bought the champion trader book about 2 years ago and completely forgot about it until the other day and after coming into some money im looking to invest a little of it. Im not looking to become a millionaire overnight but just want to earn a bit of extra cash every now and then. Im looking to get into spread betting as i feel i currently understand it the best and am loving a website which deals with it. The thing im having a problem with is identifying signals. Its something noone else seems to have a problem with so im a little embarrassed bringing it up but what the hell.

Whenever i go onto bigcharts.com as suggested i enter the name of the stock, eg uk:bp and i get the relevant chart. In the manual it tells me to look for a turning point on the EMV and when the stock hits the relevant number to trade. My problem is that even after looking at about 30 charts i dont see how i can get there early enough. Maybe its just because i havent been doing this long enough but if someone could tell me exactly how to identify a signal i would really appreciate it. My trading future depends on it.

Cheers
 

Peter36

Junior member
17 0
Hello P.McDee, Got your posting earlier today. The first thing to be aware of is that the Bigcharts data you are getting for the stock uk:BP is delayed data so unless the Time frame you are trading in is 3Months Quarterly futures market or something like that for which "End of day" or delayed data would be perfectly O.K.otherwise you are always going to be too late entering as the market and the spread quotation will have moved on in realtime ahead of you.Bigcharts provide realtime U.S.data but U.K.data is delayed. If I remember correctly, Champion Trader made reference to Simple Moving Average rather than the Exponential Moving Average . Email me at peterthepiper36@hotmail.com and I will be happy to help you further , if I can. Regards, Peter 36
 

puregold24carat

Active member
159 3
I bought all 3 manuals of his.........none of them work when tested over year.What you make short term you end up giving back in long term
 

Peter36

Junior member
17 0
Most traders lose money for the first six years just struggling to master the psychology . Profitable strategies, such as trading pull backs, in strongly trending markets, which is what Champion Trader explains, is a long established and well regarded strategy. The theory is the easy bit, the application requires discipline , it`s tough.
Best Regards,
Peter36.
 

puregold24carat

Active member
159 3
Nothing to do with psychology.His method are mechanical.i e.a system that one does this when this happens etc etc.Taking into account spreads,slippage and his stops being hit incurring regular losses and having tested his method for 7 YEARS.....they show hardly any profits.At the end one felt like going round in circle....rather like a dog chasing its own tail.
 

Peter36

Junior member
17 0
Well now, puregold24carat, you have misunderstood the first sentence in my posting of 10:23 p.m. yesterday. In all probability you have also misunderstood how to trade pull back strategies which allow the market to decide ones actions and harvest consistent profits. It is simple. It is greed, fear, trying to anticipate the market, over trading, allowing profitable trades to turn into unprofitable trades, holding on to losing trades, closing potentially profitable trades too soon which allows traders who have not mastered the general psychology of trading to snatch defeat from the jaws of victory. The markets and the spread betting firms are not out to get you. It is all the self-defeating stuff in ones own head which creates the problems. I accept that one person will read a book and benefit from it i,e, make profits. Another person will buy the same book and derive no benefit but in spite of that will go on to buy a second and even a third book by the same author. We are all different. What more can I say. I am sorry to learn that you did not benefit, as others have from Mr.Lakhi`s trading manuals.
Best regards,
Peter36
 

MitchT

Junior member
48 11
I wish I'd been here at the begining of this discussion... alas, I wasn't, but here's my take on the CT Formula...

I was introduced to the CT Formula by a friend a few years ago. He lent me the book, which I read with interest, before opening a spread-betting account with TradIndex. In a matter of months I turned £20K into £50K on TradIndex's virtual 'player account' platform by trading CT signals on the FTSE 100, Nasdaq 100, S&P500 and Dow Jones.

I used BigCharts to identify signals and entered positions when the price on BigCharts penetrated the entry level. I couldn't use the prices on TradIndex as their 'future' prices were way different to BigCharts' prices. once I was in a position I added or subtracted (depending whether I was long or short) 1% to/from the price I had entered at and placed a limit order at that level to get me out. This worked a treat with the 'player account', and also with an 'investor account' with real money it it... right up to the point that I started to get nervous and started making silly mistakes which led to losses. If I'd stuck to the system I'd have done really well out of it for a year or more.

Things did change however. The system started failing when the market ceased moving enough to hit the target prices, and then there was the massive bull run which has recently stalled, in which I wasn't sure how to trade the CT Formula. I started using a 14 day RSI and only trading long if the RSI was above the 50 line and only trading short if it was below the 50 line, and that helped to filter out false signals, but it currently the CT Formula simply doesn't work like it used to.

It is an interesting and useful system though which can be built upon. One day I printed out the last ten years worth of BigCharts candlestick data for the S&P500, with six months on each of 20 A3 sheets, to see how the CT Formula would have performed. Very reliably is the answer. Only recently when the market has become less volatile has the opprtunity to hit targets of 1-2% movement from the 'get-in' price, as recommended in the book, been lacking. Of course, there have been many times when a much bigger target could have been achieved, though how this could be done without risking losing one's profits in the event that the market turns instead of merely pausing for breath, isn't clear to me yet. I have a lot to learn.

Whatever anyone else thinks of Shiraz A Lakhi and his CT Formula, it has certainly taught me some useful things and introduced me to ways of thinking which have been very helpful.

I'd be interested to get my hands on the CTA - if anyone has a copy they don't want...
 

puregold24carat

Active member
159 3
Got all 4 versions.....somewhere........gathering dust.......
 

Peter36

Junior member
17 0
MitchT said:
I wish I'd been here at the begining of this discussion... alas, I wasn't, but here's my take on the CT Formula...

I was introduced to the CT Formula by a friend a few years ago. He lent me the book, which I read with interest, before opening a spread-betting account with TradIndex. In a matter of months I turned £20K into £50K on TradIndex's virtual 'player account' platform by trading CT signals on the FTSE 100, Nasdaq 100, S&P500 and Dow Jones.

I used BigCharts to identify signals and entered positions when the price on BigCharts penetrated the entry level. I couldn't use the prices on TradIndex as their 'future' prices were way different to BigCharts' prices. once I was in a position I added or subtracted (depending whether I was long or short) 1% to/from the price I had entered at and placed a limit order at that level to get me out. This worked a treat with the 'player account', and also with an 'investor account' with real money it it... right up to the point that I started to get nervous and started making silly mistakes which led to losses. If I'd stuck to the system I'd have done really well out of it for a year or more.

Things did change however. The system started failing when the market ceased moving enough to hit the target prices, and then there was the massive bull run which has recently stalled, in which I wasn't sure how to trade the CT Formula. I started using a 14 day RSI and only trading long if the RSI was above the 50 line and only trading short if it was below the 50 line, and that helped to filter out false signals, but it currently the CT Formula simply doesn't work like it used to.

It is an interesting and useful system though which can be built upon. One day I printed out the last ten years worth of BigCharts candlestick data for the S&P500, with six months on each of 20 A3 sheets, to see how the CT Formula would have performed. Very reliably is the answer. Only recently when the market has become less volatile has the opprtunity to hit targets of 1-2% movement from the 'get-in' price, as recommended in the book, been lacking. Of course, there have been many times when a much bigger target could have been achieved, though how this could be done without risking losing one's profits in the event that the market turns instead of merely pausing for breath, isn't clear to me yet. I have a lot to learn.

Whatever anyone else thinks of Shiraz A Lakhi and his CT Formula, it has certainly taught me some useful things and introduced me to ways of thinking which have been very helpful.

I'd be interested to get my hands on the CTA - if anyone has a copy they don't want...
Hello MitchT,
I consider Champion Trader risk and money management very dodgy, for example on page 121 the author states that he commits 25% or more of his capital in a single trade. a very reliable way of blowing ones margin I would think. Champion Trader is a rather long winded explanation of " pull back" system trading readily available free on the Internet. The author does not explain that a strongly trending market is required or how to determine. when a market is trending srtongly in the appropriate time frame.Once you lose confidence in a strategy and start to depart from it, it signals the beginning of the end. It is far more difficult to make money day trading as in Champion Trader Active, than it is when trading the quarterly Futures. When I hear of anyone increasing 20K to 50K in just a few months ...I think...wait for the crash, far too much risk to be sustainable.. Take care, Peter36
 

bobin

Newbie
1 0
Hi Guys, I purchased champion Trader many tears ago and then requested a refund, I never like paying for these things. I got my money back and kept the book. I remember that I opened a 'Bet on Markets' account and used to trade Barrier / No touch on the FTSE. I remember that I made a modest profit but not a fortune. I did however close the account and moved on to Financial Fixed Odds Betting. I still use the basics of Champion Trader and find this a very easy wat to pass the time.
My wife and I take three or four continental holidays a year, all paid for by profits from my investments. I do not know if CT is still available but I thought it was well worth the money.
 

puregold24carat

Active member
159 3
Hi Guys, I purchased champion Trader many tears ago and then requested a refund, I never like paying for these things. I got my money back and kept the book. I remember that I opened a 'Bet on Markets' account and used to trade Barrier / No touch on the FTSE. I remember that I made a modest profit but not a fortune. I did however close the account and moved on to Financial Fixed Odds Betting. I still use the basics of Champion Trader and find this a very easy wat to pass the time.
My wife and I take three or four continental holidays a year, all paid for by profits from my investments. I do not know if CT is still available but I thought it was well worth the money.
I liked the manual too and ended up buying the whole company out .:cheesy:
 

Trader333

Moderator
8,479 879
I never like paying for these things. I got my money back and kept the book
I do not know if CT is still available but I thought it was well worth the money.
So you stole it and now claim that paying nothing was well worth the money, I expect everyone who obtains goods by theft has the same view.


Paul
 

cabbycabbage

Junior member
12 1
I have just come across a copy of this system in a charity shop! I did buy it for £2.50 and felt good in the fact it would have gone to a better cause than lining what would seem to have been a very unsatisfactory author to many. I do remember Mr Lakhi's adverts in the Exchange and Mart (United Kingdom) back as far as 1999-2000 when he was competing with a company called FTS based in Porlock (United Kingdom) both claiming you could earn £500 a week. He apparently attended the FTS course and eventually decided to go at it alone by producing his own saleable product at a third of the price. It is interesting as I do remember that when in those days you had to request information on anything like that you would be sent promotional info through the mail. Champion Trader's contained testimonials saying things like " I have also tried ### who also advertise in the exchange and mart and their course is not so good" …..there are others, but one was able to make a quick judgement of these hopefully. To me at the time it sounded like someone who had attended the FTS course and not done well as a result. This would more than likely be due to the fact that he did not posses or have the temperament to be a speculator and trader.