Unveiling for the first time in Australia

THE ‘BIG SIX’

The machine-trading breakthrough that could beat your regular returns by up to SEVEN TIMES…
starting next Monday

Hi, James Woodburn here.

In the next few minutes, you’re going to see something you might find difficult to believe.

I’m about to show you a new trading system. It generates entry and exit signals, not just on stocks, but on indices and commodities too.

We’ve been testing this new system here in our office for the last four months. It’s been back-tested with close to 30 years’ worth of market data.

The numbers — well…they’re mind-blowing. I want you to see them for yourself. I’ll show you in just a second. I’m going to insist that you stick around to see them.

In fact, I’m pretty sure that once I’ve shown this to you, you’re going to be eager to have a go yourself.

It’s not often that we get to share a genuine breakthrough with our readers. But I’ll try to keep a lid on my excitement for long enough to go through everything with you in this presentation.

Then I’ll explain how you can be one of our first readers to put this new system to the test.

(In fact, you’ll be among the first in the country to try it out. I have a feeling you’ll want to…)

I want to start by showing you something you should be pretty familiar with.

This is a 10-year stock chart of BHP Group.

Check out the black line. That’s the stock price. I’ll tell you about the yellow band in a moment — that has to do with our new system.

Source:Thomas Meyer
(NOTE: All figures shown above exclude trading fees, taxes and dividends)

So…what do you see?

You’ve got the huge run-up in the stock price in the wake of the 2008 financial crisis. This was when Australia was flying. We were exporting tens of billions of dollars’ worth of iron ore to China every year at this point.

Then you’ve got that horrible-looking slump from 2011 onwards — when the mining boom started running out of steam...

…followed by a pickup in the stock price again, post-2016.

For some investors, this would be a horrible-looking chart!

Imagine holding the stock…then seeing all of those juicy post-2008 gains handed back to the market.

And then imagine selling all your BHP shares at the end of 2015…when it looked like the stock was in freefall…only to see the price start going up again!

So how DID you feel?

Because, let’s face it, there’s a good chance you own BHP stock. Or have owned it at some stage over the last 10 years.

It’s fair to suggest that we all have. It’s currently the biggest traded stock by value in Australia.

And it’s tracked by a bunch of institutional analysts, all trying to figure out where BHP’s stock price is headed next.

I’m sure all these people are super-smart.

They’re certainly well-paid.

But I’ve come to realise: They might as well be trying to predict the second coming of Jesus.

Let me show you why

Here’s another chart. Or, more accurately, another version of the same BHP chart…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

See the green line?

See how it starts off by roughly tracking BHP’s stock price?

Now look at 2011…at the beginning of that big downturn.

BANG! The green line takes off like a rocket — and keeps going up.

It’s like a BHP trade from an alternate universe — the kind that exists in your trading dreams!

That — specifically, HOW IT DOES THAT — is the reason I’m sitting here talking to you today.

I have the answer and I’ll share it with you over the next few minutes.

But first, let me ask you something:

What if I could put you on that green line?

That ‘alternate BHP’ trade.

Let me show you what it could mean, with the help of a few scribbles…

Source: Thomas Meyer
(NOTE: All figures shown above exclude trading fees, taxes and dividends)

So, over the last 10 years — taking all the ups and downs into consideration — you could have outperformed BHP’s stock by 152%.

Put another way: You could have beaten BHP’s gains by almost SEVEN TIMES over the last 10 years.

It’s a good-looking chart, isn’t it?

But just to be clear, none of the figures you see here include things like costs, taxes, margin requirements or dividends — all of which would affect your gains in a real-life scenario.

Yes, I know it begs a lot of questions. But essentially, that outperformance is down to being in the right trend in BHP at the right time.

So how could something like this be possible?

Well, it isn’t the result of endless hours of balance sheet analysis…

It’s not the work of some institutional ‘brainbox’ who figured out how to find ‘hidden value’ in BHP’s stock…

And it’s not the output of some ‘black box’ software. The kind that uses technical indicators to predict where the stock might be heading next.

It’s none of those things.

In fact, it’s not a PREDICTION tool at all. It’s a MEASUREMENT tool.

Instead of telling you where the stock price could be headed next, it tells you what the prevailing trend of the stock is right now.

THAT’S what you trade.

It does this with the help of a sophisticated computer algorithm.

Now, you’ve heard about algorithms, right? Or ‘robo-traders’, as I’ve heard them called…

Algorithms are everywhere in financial markets in 2019. In fact, according to JP Morgan, 60% of all trading activity worldwide is now done via algorithms.

We are talking about state-of-the-art Wall Street tech. Some of the biggest investment funds, banks and institutions in the world trade stocks using algorithms these days.

You could certainly call it an ‘edge’. It’s how I suspect they’re able to post billions of dollars in profits every year…while many of the rest of us grab a few percent here and there doing things ‘the old way’.

Well, maybe not anymore.

See, a few months ago, a friend put me in touch with a former Wall Street guy he said I should meet. He’s a Texan, by the name of Tom Meyer. Tom worked the trading desk at Morgan Stanley for 25 years. He’s a super-smart guy.

Since he left Morgan Stanley, Tom has spent most of his time building algorithms to trade stocks. He’s sold some of these to investment banks. But others, he owns himself, and trades on a regular basis.

My friend, an old mate from London who runs a big financial research business over there, told me he’d asked Tom if he could build a trading algorithm that could be applied to the UK FTSE 100 Index. ‘No problem’, said Tom, and set to it.

Once he built the algorithm, he back-tested it with 28 years of UK market data.

Now, that may seem excessive to you. But he wanted to see how the computer program would have performed during things like the run-up after the ’87 crash…the dotcom crash…the 2008 financial crisis…and the subsequent bull market.

Here’s the result of that back-test…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

So that you’re clear about what you’re seeing here, the UK stock market is the black line at the bottom.

Tom Meyer’s algorithm is the green line — the one going parabolic!

The green line shows what could have happened, had you followed the algorithm’s weekly market signals (again, not including fees, taxes or dividends).

And I’m sure you can read… If you’d been able to place those trades at the time, you could have beaten the UK index by 690%.

That doesn’t seem possible, does it?

But that’s precisely what you’re looking at.

Remember, the algorithm doesn’t predict where the market is headed. It simply calculates what the market trend is right now.

And there are only three possible options:

1. The trend is bullish.
2. The trend is bearish.
3. The trend is in transition.

If the current trend is bullish — well, it would suggest to me that you should buy the market. In other words, go LONG.

Now…if the trend comes up as bearish, you’d probably want to SELL the market, or go SHORT.

And if the trend shows as being ‘in transition’, that means it’s moving from a bullish to a bearish condition, or vice versa. But it hasn’t broken out either way yet.

Because no firm trend has been established, you’d probably want to move out of whatever position you were in and into cash, while you wait for a new trend to establish itself.

(Bear with me. I’ll give you some ideas about how you could execute these signals in a moment…)

For now, check out the chart again…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

The green line here is basically what would have happened, if you’d been able to interpret those signals as I just described at the time.

And by the way, the outperformance you see on this chart was NOT gained by using any leverage.

This is — essentially — just what you’d get from following the trend…and staying the right side of it.

While you’re looking at this chart, let me just tell you about the yellow band you can see that sort of tracks the market — the thing that looks like a highlighter pen.

That’s the ‘secret sauce’ that drives the algorithm.

Tom calls it the ‘Transition Zone’.

I see it as a visual representation of the algorithm itself.

I’ll get into how it works shortly.

But essentially, at any given point, if the market — represented by the black line — is ABOVE the transition zone — represented by the yellow band — the trend is considered bullish.

If the market is BELOW that yellow band, the trend is considered bearish.

If the market is anywhere WITHIN that yellow band, the trend is transitioning from bullish to bearish or vice versa.

You take your trading cues from wherever the market is in relation to that yellow band: The transition zone.

Now, if I were following these signals, what would I do?

• Well…if the signal was bullish, I’d go long — or buy the market.

• If the signal was bearish, I’d short the market.

• If the signal was in transition, I’d exit my position and go to cash.

Does that make sense?

Don’t worry — it will.

You can also see a red line on the chart. That’s interesting, too.

Tom put that on there to show what would have happened if you DIDN’T short the market in response to a bearish signal.

Instead, you sold out of your ETF and waited in cash for another bullish signal to emerge.

If you’d done this, you’d STILL have beaten the market by 316% over that period — hypothetically speaking, of course.

So basically, if you’re not comfortable ‘short selling’ — if it seems too complicated or risky for you — you can use the bearish signals to exit a falling position and move into cash.

In other words:

• You can potentially use this algorithm to make money while a market is going up.

• You can potentially use this algorithm to make money while a market is going down.

• You can potentially use this algorithm to protect your capital while a market is going down.

• You can potentially use this algorithm to avoid making a bad decision while a market hasn’t established a firm trend either way.

So…you can see why I was so keen to talk to Tom!

In Australia, right now, there are very few algorithmic trading services aimed at retail investors like you.

This kind of thing is, pretty much, only for the big boys.

Imagine using this kind of technology to guide your trading decisions!

Think about it.

This is something that could eliminate snap decision-making based on your emotions or your gut feeling about a trade…

It could help remove a lot of the stresses associated with trading markets that move up and down every day…

Most importantly: It could conceivably keep you the right side of a trend in a market — until that trend changes…

Imagine the impact that could have on your trading account.

So, I called Tom in early January.

I explained that our mutual friend had given me his number. I told him about our research and publishing business here in Australia, and what we try to do for our readers.

And I asked if he’d be willing to do a deal, with me, to build an algorithm that generates trading signals for the Australian market.

Over the course of the next few weeks — including flying halfway around the world to meet Tom personally — we realised…

We could go one better.

In fact, we realised we could go FIVE better.

See, this algorithm Tom’s built…it doesn’t just work on stock indices.

It works on practically everything.  

Pretty much every stock you can think of. Every commodity market. Every global index.

The only thing it needs is volume.

As long as there’s plenty of traded volume in the stock, you can apply Tom’s algorithm to it, and it will do its thing.

So, I got to thinking…

We’re a relatively small market down here. Most of the daily traded volume in Australia is in roughly 20 stocks.

Now, it varies a little depending on the market conditions, but generally speaking, we’re talking about four or five banks. Two to three big miners. A telco. A retailer. And a couple of airline stocks.

In other words, you can essentially ‘trade Australia’, just by buying — and occasionally selling — these 20 stocks.

To be honest, the volume in most of our other listed securities is so small by comparison, you could think of them as ‘speculations’.

And speculating is fine, of course. We have some excellent services for people who like to speculate on thinly traded stocks.

But this algorithm is interested in finding big trends.

And to get big, established trends, you typically need a good amount of traded volume.

So, here’s what we’ve done…

We’ve worked with Tom to develop a brand-new trading service.

It uses his proprietary algorithm to generate weekly signals on SIX high-volume Australian markets.

They include four of our biggest stocks: BHP Group, Commonwealth Bank, Telstra and Qantas…and also the gold market and the ASX 200 itself.

We call them:

The ‘Big Six’

Depending on your circumstances, these could be the only six Australian markets you ever need to trade.

And, if you follow our algorithm, you only need to trade them a maximum of once a week: Every Monday morning. BEFORE the market opens.

That’s it. Six trades a week.

The following Monday, you get a new set of signals — one for each of the ‘big six’ markets — all generated by Tom’s algorithm.

I’ll tell you in detail how our new service will work in a few moments. And I promise you’ll be one of the first in the country to put it to the test.

But before I get into the nuts and bolts of that, let me just show you what we’ve been doing, with Tom’s help, behind the scenes here in Albert Park. And how it really could hand you a ‘Wall Street edge’ in your trading…

Let me show you how the algorithm tested against our six flagship Australian markets over the last 10 years.

Starting with the stock market itself — the ASX 200…

I’m going to throw the 10-year chart up for you here. Remember, this is the result of our back-testing, so these are hypothetical returns….

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Now, first things first. The Aussie stock market (the black line) has been in a bullish condition for most of the last 10 years.

So, had you just bought the market and held on — well, you can see from this chart that you could have made a 63% return on your investment.

Which is perfectly fine.

Remember, the algorithm is designed to find and track trends.

So, as you can see here, the computer (the green line) called it virtually spot-on throughout the back-testing.

In fact, when you look at our test, it’s hard to see where it put a foot wrong over the last decade…which is pretty amazing, if you ask me.

But where the algorithm is truly impressive — especially for traders — is where it switches to a bearish signal at the three major points where the ASX 200 falls sharply:

In mid-2011...again in early 2015...and again at the end point of 2018.

At these points, investors who owned index tracker funds — and didn’t sell out in time — likely would have lost money.

But had you traded according to the signals generated by Tom’s algorithm in back-testing, you wouldn’t have.

That’s because the trend changed. And the algorithm was smart enough to change with it.

Here — I’ve ringed those ‘divergence’ points in blue on the chart for you.

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

This is the algorithm staying in the right trend while the market tanks

Let me show you what that looks like with the most recent of those ASX 200 downturns — at the back end of last year…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Now, okay, you couldn’t go out and buy a Porsche based on this outperformance (unless you’d leveraged right up).

But just look at what’s happening here.

Look at how the algorithm — the green line — splits off from what the market’s doing, at the crucial point, to keep you in the right trend.

It’s like the perfect mirror image…or that ‘alternate universe’ trade I mentioned earlier!

The market, during this two-month period, dropped 9% (I’ve circled that in red on the chart). That’s a pretty significant fall. You’d definitely have felt the burn if you’d had a lot of money tied up in stocks.

But the algorithm — as you can see from the green line here — switched strategies at the point the trend changed.

It generated a bearish signal.

Hypothetically speaking, had you got this signal, you could have done one of two things:

1. You could have just sold your market tracker and gone into cash. Had you done this, you wouldn’t have sustained that 9% loss that took a lot of Aussie investors by surprise.
2. Or you could have sold the market short. Had you done this, you’d have made a 5% gain…which is an aggregate outperformance of 14%.

Look, we’re only talking two months here. And remember, these are back-tested results.

But that, to me, shows the potency of this trading system.

What if you’d had this kind of guidance in October last year?

And what if the market crashes again? Only this time, by 30 or even 40 percent?

I’m not saying the algorithm gets it right every time.

But it did here.

And at a time when investors were panicking, not really knowing what was going on, wondering whether the sky was falling in, and not knowing what to do for the best outcome…

…this system could have put you on the right side of the trend, at the right time.

How would this change your investing life?

Think about that while I show you how the algorithm would have traded the second of our ‘big six’ Aussie markets — BHP Group.

Now, I know I’ve already shown you this chart.

But I’m going to stick it up again because, frankly, it’s great to look at.

Check it out.

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

To quickly remind you, this is a 10-year chart, showing the performance of BHP’s stock. Basically, it’s what could have happened if you’d bought and held shares over the past decade.

That’s the black line.

The yellow band — remember — is what we call the ‘transition zone’.

Then there’s the green line. That’s the hypothetical performance of the algorithm. In other words, it’s what you could have achieved, if you’d followed:

• Every bullish signal by going long,

• Every bearish signal by going short, and

• Every transitional signal by moving to cash.

Now, again, this is back-tested performance. I must keep stressing that.

But the data is actual BHP weekly closing prices from the last 10 years.

And you can see that had you followed the algorithm’s signals…you could have outperformed BHP by 152%.

In other words, you could have made nearly SEVEN TIMES more gains using these signals to trade BHP.

Now, remember, this doesn’t factor in fees, taxes, dividends or any margin requirements.

But my point is that there’s no guesswork going on here. No forecasting. No hunches. And no ‘gut feeling’.

The algorithm, remember, does not try to predict the market.

It simply measures the ‘mood’ of the stock on a weekly basis — in real time — and spits out one of three signals:

• Bullish
• Bearish
• In transition 

You use that signal to inform the position you take in the stock (or out of it, as the case may be).

While we’re on the subject of BHP, let me show you something really cool.

Check this out…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Yes, this is still BHP.

But I’ve zoomed in to a specific period to show you, again, where this algorithmic system really earns its stripes.

So, this chart shows BHP’s stock performance from roughly the beginning of 2011 to roughly the end of 2015.

You can see here — I’ve circled it for you — that the stock fell by 65% over this timeframe.

Cast your mind back. The mining boom was slowing down. Commodity prices were falling.

In August 2012, then Resources Minister Martin Ferguson went on ABC’s AM program and said:

‘You’ve got to understand the resources boom is over.’

You might recall that caused a bit of a stir at the time.

But look at how the conditions are reflected in BHP’s share price.

He had a point.

Now, okay, that’s all in the past. But what I want to show you here is that green line again. See how, as BHP’s share price tanked, our algorithm did the opposite… It went up!

Again, this is a hypothetical result.  

But it basically shows that the algorithm could have:

• Ignored all the noise in the media (and coming out of Canberra),

• Ignored the sentiment and emotion that no doubt kept a lot of buy-and-hold investors in the stock,

• Ignored the gut feeling of traders who bought in as the stock made new lows, waiting for a bounce-back, and

• Put you on the right trend in the stock.

Had you been able to respond by selling the stock short…and then followed every subsequent signal…you could have made 179% gains during that period.

Compare that to just 27% by ‘buy and holding’…

That’s nearly SEVEN times more gains.

Friend…this is what’s possible when you get on the right side of a trend.

Like I say, I’m pretty sure most of us have owned BHP stock at some stage or other over the past 10 years.

But why did we buy it?

• Maybe we believed in Aussie resources and the commodity boom.

• Maybe we had no choice. Perhaps we’re a member of an investment fund that buys and sells stocks on our behalf.

• Maybe we just like buying big stocks because they tend to be less volatile. That means we don’t have to watch the market all the time.

Well, now you see how an algorithm trades BHP

Not according to ‘blind faith’ or ‘gut feeling’. Not driven by emotion. Not constantly needing to check itself or seek counsel from others. And not according to any of the pre-existing biases we all tend to have.

Interesting, isn’t it?

There’s more.

Let me show you the four other investments we’ll be generating weekly signals for, starting this coming Monday…

Starting with Commonwealth Bank.

Here’s the 10-year chart for CBA…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Remember, this is back-tested data. The returns are hypothetical.

But this is a great example because it shows you two important things:

1. You could have outperformed the stock by 123% over that period by following the signals generated by the algorithm.
2. The algorithm doesn’t outperform the market every week.

It is a trend-following system, after all!

If the market trends up for months or years at a time — like CBA did up to 2015 — and you’re following the signals, you’re basically going to be long the stock — which is the same as buying and holding it.

If you want to pitch for more dollars in the bank, you can leverage up your long position until the trend changes.

But that’s up to you. There’s a higher level of risk involved with leverage. You should make sure you’re comfortable with that additional risk, if you’re going to go down that road. And as with any kind of investing, never invest more than you can afford to lose.

Other weeks, the system makes the wrong call.

Don’t be surprised! That’s trading.

No system is ever 100% accurate. We don’t have a crystal ball. Only a sophisticated algorithm. But even that can’t see into the future. It only finds and follows trends. And tells you the ‘mood’ of the market at that time. You can act on that signal if you want to.

Case in point. Look at the CBA chart again…

See where the stock takes a big dive at the mid-point of 2015?

At this point, the trend changes and the algorithm switches strategy.

Here, I’ve circled that bit of the chart for you in the top left corner…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Commonwealth stock dropped by 21% over this two-year period.

But look at the algorithm — the green line.

It’s like another ‘mirror image’…another trade from an ‘alternate universe’!

The algorithm detected that the trend in CBA was bearish.

Had you acted on that signal… it’s unlikely you’d have lost money – depending on the size of your transaction costs.

And had you decided to short the stock, you could have made a 5% gain…which doesn’t sound like much.

But it’s an aggregate outperformance of 26% — which is unbelievably impressive.

(Again, your gain could have been a lot higher had you decided to leverage up your position. But leverage isn’t for everyone. That’s why I’m showing you the basic performance of the algorithm without leverage. I’ll leave it up to your imagination to do the rest!)

In any case, this shows you what could be possible when you happen to be on the right side of a trend in a stock…

…versus what happens to buy-and-hold investors who are stuck on the wrong side of that trend.

Do you like the sound of that?

Remember I asked you:

What if I could put YOU on that green line?

Well, that’s the goal of a brand-new VIP service I’m launching called Algo Trend Trader.

I want to make Wall Street technology available to regular investors.

Because I believe it’s the future…and now it’s within your reach!

If you want to take part, and try out this breakthrough trading service as a ‘charter member’, here’s what will happen, starting right away…

You will get an email every Monday morning, before the market opens.

That email will contain six signals. One for each of these markets:

1. The ASX 200
2. BHP Group
3. Commonwealth Bank
4. Telstra
5. Qantas
6. Gold

Each algorithmically generated signal will tell you whether the current trend in that particular market appears to be:

1. Bullish — in which case you may decide to buy, or ‘go long’.
2. Bearish — in which case you could choose to sell, or ‘go short’.
3. In transition— in which case you may want to be in cash and wait for a new trend to emerge.

Then it’s over to you.

Of course, I’ll give you some suggestions about how you could execute these weekly signals in a few moments.

But the decision — and the action to take — is yours.

FYI: This service is designed for sophisticated traders and investors (there are thousands of them among our subscribers). If that’s you, you should be at a level where you don’t need us to hold your hand.

Suffice it to say: If you haven’t traded in and out of stocks before, this won’t be for you.

It’s not for beginners.

In fact, it’s the opposite.

This is about as high-end as it gets

Anyway, that’s the general gist of it.

I hope you’ll give it a try. This really is cutting-edge stuff and the potential for this computer-coded tech is completely off the charts.

If you’d like to take part, I’ll explain exactly what you need to do in a moment. (Don’t stress — you can trial Algo Trend Trader for the next 90 days with no obligation. Details coming up).

And yes, I know you’ll have questions. I’ve anticipated a lot of the questions this kind of proposition will throw up.

I promise I’ll address them in this presentation.

Listen, don’t make any decision yet. There’s still lots to show you.

Let’s move on to the next of our ‘big six’ Aussie markets — and let me show you how Tom’s algorithm traded it during our development phase.

I’m talking about Telstra.

Okay—we all know Telstra has had its ups and downs over the past 10 years…

I mean, literally! It’s share price chart looks like a snapshot of the Swiss Alps!

Check it out — look at the black line on this chart. That’s Telstra.

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

I wanted to ask you to imagine holding this stock while it does an impression of a broken cable car…

But the truth is, there’s a good chance you DID own Telstra stock while this was all going on.

I’m talking about all the hoo-ha over selling its copper network to the NBN… Then you’ve had a bunch of new entrants coming into the mobile phone market…and the threat of tens of thousands of customers ‘cutting the cord’ and using the internet to make phone calls instead.

Telstra shareholders have had some BIG challenges in the recent past.

And I’ve no doubt plenty of them bit down hard, scrunched their eyes shut and held on for that horrible death slide, from 2015 onwards.

But…

Our back-testing shows a different picture.

First…it shows, overall, that the signals generated by the algorithm could have led you to an aggregate 202% outperformance over the stock during the last decade.

Looked at another way, you could have made up to ELEVEN times the gains, had you traded according to the algorithm’s signals, instead of simply holding the stock over that time.

Nice.

But even better than that…

Look at the system’s test results when Telstra’s stock started to slide at the beginning of 2015…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Here you go. This is the point at which the trend turned bearish…and the algorithm switched strategies (in back-testing, remember).

In other words, in this hypothetical scenario, had you followed the signals generated, you could have remained on the right side of the trend…and potentially made a 54% GAIN while Telstra’s stock FELL by 53%.

Put another way, you would have outperformed Telstra by 107%.

Tell me:

Have you ever seen anything like this?

I mean, genuinely?

To summarise…

It appears that what we’re looking at here is a system that can potentially:

• Keep you long while the market is going up,

• Signal you to go short when the market is going down,

• Keep you in cash while the trend is transitioning,

• Remove much of the doubt associated with investing in uncertain times, and

• Remove the desire to continually try and find ‘hidden value’ in the market (a virtual impossibility in this day and age — ironically because of computerised markets!).

Algorithmic trading is next-level stuff. No wonder it now dominates the way big institutions trade.

But it presents something of a conundrum to you…

Because once you see this, you can’t UN-see it!

A pro-trader friend of mine once told me that when you trade algorithmically for the first time, it’s like being handed the keys to a Ferrari — after you’ve driven around for years in a Ford Fiesta…

Or it’s like getting an unexpected upgrade to Business Class when you always fly Economy.

Point being, once you’ve done it, you never want to go back to the old way of doing things… It’s such a quantum leap forward!

I mean…would you choose to watch a VHS tape if you had the same movie on a Blu-ray disc?

Would you ditch your iPhone for one of those old ‘brick’ mobile phones from the 1990s?

No!

And yet — we’re seemingly happy to use 100-year-old methodologies when we invest.

We pour over balance sheets, financial statements and company announcements looking for ‘hidden value’ the market may have missed.

We obsess over ‘owning’ stocks.

And we’re always hunting for explanations for everything. Why stocks move…what could make them move…how a deeper understanding could help us predict the market. And how all that validates our own biases and desires to be ‘right’ about the world.

Don’t get me wrong. I’m not saying this approach is fruitless.

In fact, helping readers to understand how the financial world really works is one of the most valuable parts of what we do here at Agora Financial Australia. And I don’t just mean ‘valuable’ in the monetary sense.

But when you think about it, if you just want to make money from your stocks, that’s a whole load of mental effort, isn’t it?

This system doesn’t do ANY of that

It says:

• Quit trying to ‘explain’ everything — WHY things happen is not important to traders.

• Stop worrying about whether stocks are ‘cheap’ or ‘expensive’. The price doesn’t matter. You’re not buying these things to own them. You’re buying them when the trend is in your favour…and then getting rid of them when it changes.

• Forget trying to find ‘hidden value’ — you won’t be able to. The market already knows everything about your stocks, and more often than not it’s in the price.

• Stop obsessing over being ‘right’ about the direction of a market or stock price. No one cares!

• Go with the flow! Follow trends (obviously it helps if you have an algorithm to show you where those trends might be!).

While I’m on the subject, let me quickly tell you something fascinating about trends…

Bloomberg just reported the results of a study carried out by a group of quants (algorithmic traders) at the Dutch investment house Robeco Groep.

This is one of the biggest studies of its kind ever undertaken.

It analysed the performance of global stocks, bonds, currencies and commodities going back to the year 1800.

That’s 219 years’ worth of market data!

Want to know what it found?

Here’s the direct quote from Bloomberg (emphasis mine):

‘Over the two centuries, trend-following worked better and more reliably than any other factor, with a strong and consistent risk-adjusted return. Further, the trend factor tends to subsume the “momentum” factor, which involves looking for stocks that perform well relative to others.’

In other words, according to this study:

Following trends gets you better results — over time — than trying to beat the market

And I think — albeit on a much smaller scale — that what I’ve shown you so far appears to bear that out.

Think of it like a powerful current in a river.

If you try and swim against it, you’ll just tire yourself out. You’ll go nowhere. You’ll run out of energy. And the chances of getting to where you need to be diminish greatly, the more you struggle against it.

But if you swim WITH the current, you have to do less work. You are benefiting from a powerful natural force. And it’s taking you exactly where you need to be.

Let me show you what I mean — with the fifth of our ‘big six’ Aussie markets: Qantas. Let’s pull up the 10-year chart…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

Okay, Qantas stock has doubled over the last 10 years, as you can see here. If you’d just held the stock, I’m sure you’d be pretty pleased.

But then again, buy-and-holders weren’t on the right side of the trend in Qantas at every point during the last decade…

But the algorithm seemingly was. In back-testing, at least.

Hypothetically speaking, had you followed its signals to the letter… (i.e.:

• Gone long when the signal was bullish,

• Gone short when the signal was bearish, and

• Moved into cash when the signal was in transition)

…you could have outperformed buy-and-hold investors by an almost crazy 195%…on your way to a 298% overall gain.

That’s almost three times the return… simply by being in the right trend at the right time.

Check out what happened to buy-and-hold investors who got stuck in the WRONG trend in Qantas, between 2010 and 2013…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

See — the stock fell by 64%… I circled it here on the chart for you.

Why?

Qantas had a rough time of it towards the end of 2010. An engine exploded on one of its A380s…which led the airline to ground its entire superjumbo fleet.

Then a Boeing 747 bound for Sydney had to turn back to Singapore because of an engine problem.

Airline investors, it seems, don’t like safety concerns.

They ditched the stock, as you can see. 2011 was an absolute nightmare year for Qantas’s share price.

But look at the algorithm…

In back-testing, it detected the trend change in mid-2010.

It didn’t panic. It simply generated a bearish signal.

And look what happened…

While the stock tanked by 64%…if you had been able to short sell, you could have made a 50% gain — yes, a gain in Qantas…

…leading to an aggregate outperformance of 114% (hypothetically speaking, of course).

Again, this superb outperformance is the theoretical result of being on the right trend in Qantas at the right time.

In back-testing, across each of the ‘big six’ markets we analysed, Tom’s algorithm showed itself to be more than capable of doing that — consistently.

I’m not saying it’s right every single time. But as you can see here, it’s hard to see where it puts a foot wrong.

In any case…

These are the six markets we will begin releasing weekly signals for — starting this coming Monday

Tom will put his algorithm to work on Friday evening, after market close.

It will crunch the week’s traded volume data for these six markets:

1. The ASX 200
2. BHP Group
3. Commonwealth Bank
4. Telstra
5. Qantas
6. Gold

The algorithm will apply its unique mathematical code to the previous five days of price action.

Overnight on Sunday, Tom will give me access to the six new signals.

I will email these signals to you every Monday morning — before our market opens — so that you can place your trades for the week.

I will also suggest a stop-loss level to you for each potential trade. This may help you if the trend changes unexpectedly, and the market gaps up or down.

So…that’s:

Six markets.

Six trades.

One email a week.

And, hopefully, up to seven times the potential gains in the years ahead, if the BHP back-test is anything to go by.

Look…if you can see the benefit in following trends…

…and you agree that it’s easier to establish trends in markets that trade in high volume…

…these may be the only six markets you ever need to trade!

Interested?

Hold that thought while I quickly show you how the algorithm tested against the last of our Aussie ‘big six’ markets: Gold.

Now, you know we love gold here at Agora Financial Australia. We love it for many reasons. But as a trade, it hasn’t always worked out that well for investors. Especially since the mid-part of 2012, as you can see by the black line, here…

Source: Thomas Meyer
NOTE: All figures shown above exclude trading fees, taxes and dividends

But look at what our back-testing shows…

Around the same time as the gold price started to seriously tank — right at the beginning of 2013 — the algorithm (green line, remember) shoots off…in the OPPOSITE direction.

It detected the bearish trend in back-testing, switched strategies and could have helped you avoid a big loss.

So, to be clear, hypothetically speaking…

• If you’d have acted on the bullish signals by going long…

• Acted on the bearish signals by going short…

• And acted on the transitional signals by moving into cash…

• You could have made a 185% gain…while the gold price returned 49% over the same period (that’s almost FOUR TIMES as much).

Which would you rather have?

And by the way, that theoretical outperformance of 136% was NOT achieved using leverage.

But what if you DID want to leverage up your position in these trades?

Well, of course you can.

You can use CFDs. It’s entirely up to you. The beauty of our new trading service is that we’re not going to tell you what to do with the signals.

But here’s what you COULD do…

Week 1 — let’s say the signal is bullish.

• If it’s a stock, you could just buy it through your broker.

• It it’s a market, you could buy a regular ETF.

• If you want to use leverage to shoot for a bigger potential return, you could ‘go long’ the stock using a CFD (but you’ll need a CFD trading account).

Week 2 — let’s say the signal is still bullish.

• No action to take. The algorithm says the trend is still strong. I would suggest you stay in it.

OR — let’s say the signal has switched from bullish to bearish.

• If it’s a stock, you could just sell it and go to cash.

• OR you could sell your shares and take out a short position in the same stock via a CFD (leveraging up as little or as much as you feel comfortable with).

• If it’s a market, you could sell your ETF and buy a ‘short ETF’ in the same market.

• OR you could sell your ETF and take out a short position in that market via a CFD (again, leveraging up as little or as much as you feel comfortable with).

OR — let’s say the signal has switched from bullish to in transition.

• If it’s a stock, I would recommend you sell it and go to cash.

• If it’s a market, I would recommend you either sell your ETF, or exit your long CFD position and go to cash — while you wait for a new trend to be established.

Provided the signals are correct and consistent…

This is how you could stay the right side of the trend in our ‘big six’ Aussie markets

And I’ve show you over the last several minutes what that could mean for your trading account…

Now, a couple of important points that I shouldn’t have to make. But I want to be completely upfront about this, and clear with you before you commit any of your money to this new trading strategy.

1. You will incur a lot of transaction charges from your broker if the trend changes from week to week, and you decide to follow every signal.

There is no escaping this, I’m afraid.

Brokerages are businesses. And they charge you every time they execute a trade on your behalf. I know you know that. But sometimes people get so caught up in the excitement of trying out a new system, they forget about the costs of trading. Please keep that in mind!

2. The signals will not be right every week.

Again, you should already know this. If there was such a thing as a trading crystal ball, I wouldn’t be running a publishing business. I’d be the world’s richest stock trader!

And to be clear…we’re not pitching this as any kind of ‘crystal ball’.

It’s not a predictive tool...

It’s a measurement tool — a mathematical calculation, driven by extremely sophisticated computer code.

It calculates the ‘mood’ of the market at the point the signal is generated.

In other words, the algorithm is completely ‘market agnostic’.

It doesn’t care about being ‘right’. It doesn’t have a ‘view’ on any asset or security. Its function is not to predict price action. If you follow its signals, you are essentially surrendering to the price action. Like a powerful current, remember?

As I keep saying, this is based on Wall Street tech. And it’s available right here in Australia, to private investors. You, if you want it.

I keep calling it ‘next-level’ trading. That’s because this algorithmic system really does have the potential to elevate your investing to new heights.

Now, granted, I don’t know you personally. But now that I’ve shown you what appears to be a genuine advantage in the Australian market, I just have a hunch you won’t want to trade stocks ‘the old way’ anymore.

You’ve seen it now.

And you can’t UN-see it!

So, there’s really only one question left…

Do you want to try it out?

I’m biased, obviously. But since you’ve come this far, I really hope you take the next step and choose to put this breakthrough algorithm to the test in your trading.

Here’s how we can make this happen…

I am — today — launching a brand-new trading service for our best customers called Algo Trend Trader.

This is your invitation to join as a Charter Member.

I’ll go through how to accept my invitation in just a second.

But to quickly recap:

Join today, and every Monday morning before the market opens, you will get a private email from me, with six signals. One for each of these markets:

1. The ASX 200
2. BHP Group
3. Commonwealth Bank
4. Telstra
5. Qantas
6. Gold

The signals will indicate the current trend in each market. Each signal will say one of these three things:

1. The market (or stock) is currently in a BULLISH condition.
2. The market (or stock) is currently in a BEARISH condition.
3. The market (or stock) is currently in TRANSITION. I.e. neither bullish nor bearish.

In each Monday’s email, I will give you my interpretation of these six signals. In other words, I’ll tell you what I believe the signals mean. But, essentially, you can execute them in any of the ways I just described.

These markets are among the most popular and frequently traded in the country. They can all be bought and sold through your regular broker.

If you want to use leverage, you shouldn’t have an issue trading through any Australian CFD provider.

You will hear from me once a week — like I say, every Monday morning, before the market opens — with the weekly trading signals.

That’s it.

Remember — this service is market agnostic.

There’s no additional market commentary. No long-term editorial ‘theme’ to provide context to your trades. Just six signals. Once a week.

The only time you’ll hear from me between Monday emails is if the trend in any of our six markets changes sharply from a bullish to a bearish condition. Then you’ll get a new signal.

But bear in mind that if you set a stop loss — and I will suggest those levels to you every week — that should take you out of your position before you sustain a big hit (although I obviously can’t make any guarantees when it comes to this).

Still with me?

Okay…

What does it cost to join?

Well, it was hard for me to know exactly where to pitch it. There are very few algorithmic or ‘quant’ funds available in Australia to private investors.

It took a bit of digging, but I found one.

It requires a minimum $500,000 investment before they’ll accept you. (See — I told you this was high-end stuff!)

On top of that, it carries an annual fee of 6.4%.

So basically, out of that half-million bucks, you’re already handing them back $32,700 — just in year one.

Ouch.

With that in mind, Algo Trend Trader could EASILY be a $10,000-a-year service.

But it isn’t.

It’s not even a $7,000-a-year service...or even $5,000...

The cost to join is just $2,999 a year.

That gets you 12 months’ worth of access to the weekly signals generated by the algorithm.

If your initial reaction is ‘That’s too expensive’, you’ve basically just wasted an hour of your life.

If you’re seriously baulking at three grand for access to a Wall Street-style algorithmic trading service, I suggest you need to re-evaluate your expectations somewhat! 

But if this isn’t an issue for you — congratulations!

You are about to do something very few Australian private investors will get the chance to do. I just have such a good feeling about this. And I’m sure — as sure as I can be — that you won’t have any regrets about making this decision today.

But look…

Let me see if I can take any remaining issues off the table for you right now…

What if I told you that, as a charter member of Algo Trend Trader, I don’t even want three thousand bucks off you today?

Well, I don’t.

If you join through this invitation today,
I’ll knock $1,000 off the entry price

That means all you’ll pay today…for access to the Algo Trend Trader ‘big six’ signals for the next 12 months…is just $1,999.

That’s a THIRD off.

But it’s ONLY available as a charter membership deal, through THIS invitation, right now.

Why am I discounting the ticket price?

Because this is completely new.

It’s not a stock-picking service in the traditional sense. It’s not a speculative ‘micro-cap’ trading service. And it’s not a ‘black box’ technical trading service.

We haven’t done anything like this before.

To be honest, it could bomb!

I don’t think it will. But it represents a new type of risk proposition to our customers.

I want to reflect that by giving you a greater incentive to try it out.

Hence knocking a grand off the entry price for the ‘early adopters’.

And while we’re on that subject…when you join today….

You will get a 90-DAY money-back guarantee

Again, we don’t normally do this.

Then again, we don’t launch algorithmic trading systems every day!

Point is, this is a TREND-FOLLOWING service.

For stocks to get established in a strong trend, you need time.

This is not something you can make your mind up about in 30 days — which is our standard refund period.

Even 60 days is pushing it.

So, I’m extending our guarantee period out to 90 days. That’s effectively three months for you to test these signals with no obligation.

If you’re interested in joining Algo Trend Trader, click on the link below where it says ‘Start Your 90-Day Trial-Run NOW’.

You will begin receiving the ‘big six’ signals from next Monday.

If you’re wary…or unsure…don’t place any trades.

You’ve got plenty of time to feel your way through this. Just get the signals, see what it’s like to follow my recommendations…and see how this could fit in with the rest of your investing.

You can evaluate this new service however you like, over the next 90 days.

If, at any time within this period, you get cold feet…or you decide it isn’t your thing…or you can’t see yourself making money…or something doesn’t feel right, call our member services team. Cancel your trial membership.

If you do this within 90 days from today, I will promptly refund you the $1,999 charter membership fee. No questions asked. No one will give you a hard time or try to sell you something else.

Do we have a deal?

Then click below — right away — where it says ‘Start Your 90-Day Trial-Run NOW’ and let me fix you up, so you can get ready to receive your first batch of weekly trading signals.

When I get your details, I’ll also send you a selection of reading material to bring you up to speed with the new service.

This includes…

1. CHARTER BONUS 1: Welcome to Algo Trend Trader. In this first report, we’ll introduce you to Tom and his unique way of measuring price action. He’ll explain why he believes computer code is the key to getting an edge in the markets in 2019. Plus, he’ll reveal how his algorithm works as a kind of market ‘bellwether’ to guide your trading decisions…
2. CHARTER BONUS 2: How to Use the ‘Big Six’ Weekly Signals. You know you’ll be getting one email a week from us every Monday morning. And you know the six markets you’ll be trading. But in this second report, I’ll explain exactly how to interpret your weekly signals, and the action you could take to capitalise on them.
3. CHARTER BONUS 3: How to short sell. In this third report, you’ll learn the practicalities of shorting — the how, why and where. But you’ll also understand that going short is just as valid an investment tool as buying…and often just as profitable.
4. CHARTER BONUS 4: How to use CFDs. If you’re the type of person interested in this service, you may already have a CFD account. But in case you don’t, and you’re new to CFD trading, I’ll send you a guide that shows you how to get started, and what to look out for when you trade with leverage in Australia… 

All set?

Then go ahead and click below where it says ‘Start Your 90-Day Trial-Run NOW’.

Remember, if you join through this invitation, you save $1,000.

This is the lowest price you’re ever likely to see advertised for a year’s access to this breakthrough trading service.

So, what are you waiting for?

Look, I’m sure you can probably think of a million and one things to do with your time and your money...

Trouble is, you have to choose between those things.

You can’t do everything.

The best advice I can give you?

Try this for 90 days.

Algorithmic trading isn’t the future anymore.

It’s the here and now.

If you can see an edge in what I’ve shown you today, you can bet your life others will have too.

And that means it won’t be an edge for long!

Click below where it says ‘Start Your 90-Day Trial-Run NOW’ and let’s get started…

Sincerely,

James Woodburn,, Editor & Publisher, Algo Trend Trader

Start Your 90-Day Trial-Run NOW

(You can review your order on the next page before commiting)

PS: Need More Information? Read This!

Perhaps you still have some questions. If so, I’ve tried to answer some of these below.

But don’t worry…everything is explained fully in the welcome guide and reports you receive when you join Algo Trend Trader today.

Q: I’m new to this and have never traded before. Is this right for me?

A: No. Algo Trend Trader is not for beginners. It’s designed for experienced investors who understand the risks associated with trading stocks.

It requires discipline to stick with the signals — which I believe is the way to get the most out of the system.

If you don’t think you can be disciplined in your approach, this won’t be for you.

Q: Is Algo Trend Trader a training course?

A: NO! This service is for busy investors who are simply looking for a new way to trade some of the biggest markets in Australia.

We will give you a selection of introductory guides — to show you how to action the weekly signals, and how they’re derived.

But if you just want guidance on entry and exit points into some of the biggest markets in Australia, this service is for you.

Q: How do I actually place my trade?

A: You need a trading account with a broker — you can trade over the phone with them or online.

If you want to use leverage when you trade any of the signals, you will most likely need to open a CFD account.

But once you get the hang of placing your weekly trade, you should find that it doesn’t take up too much of your time, every Monday morning.

Q: Do I have to make a lot of complicated calculations?

A: None at all! Tom’s system does all the analysis for you. It calculates the ‘mood’ of the market each Monday morning, telling you whether the market looks ‘bullish’, ‘bearish’ or in transition.

You then decide whether to use these signals to inform your trading decisions for that week. You don’t have to do any maths at all — just interpret the signal accordingly and trade if you want to.  

Q: How much time does it take?

A: Our trade alert emails are short and to the point. Each Monday morning, you will receive a brief explanation of the previous week’s market action.

Then you will see our ‘big six’ charts, along with our summary of what the system shows: The market is either bullish, bearish or in transition. It’s always up to you if you want to trade.

The email takes two to three minutes to read. Then you go online or call your broker and place the trade — which shouldn’t take longer than another couple of minutes.

Q: Will I be trading every day?

A: No. You will get one email a week, every Monday morning, before the market opens. It will contain six trading signals — one for each of our ‘big six’ Australian markets.

The analysis is good for that week. Most often, you won’t hear from us again until the following Monday. The only time we’ll send you a midweek alert will be if the trend in that market changes sharply and suddenly. Then we’ll issue a new signal.

But if you have placed a stop loss at the level we recommend, that should be sufficient to take you out of the position without sustaining a heavy loss (although we can’t guarantee that).

If you want to join this service, you have to put a little trust in the system that produced such stunning results in back-testing.

Q: Is this risky? Could I lose a lot of money?

A: With trading there’s always the potential to lose big. Remember, there’s no such thing as a crystal ball for the markets, and no sure-fire system that calls the market right 100% of the time.

Our aim with this service is to use state-of-the art Wall Street technology to minimise your risk as much as possible. We can never eliminate it completely.

The system will be wrong from time to time, so never risk more in any trade than you could comfortably afford to lose. And remember — if you use leverage in the form of CFDs, and a trade goes against you, you could lose more than your initial stake.

You need to understand — and accept — all of this before you join our new service today.

Q: Can I use leverage?

A: That’s completely up to you. Leverage is not recommended for beginners. You can use the signals to buy into and sell out of these markets as you see fit. If you’re a little more advanced, you can use leverage in the form of CFDs.

But please…see my note above about risk!

Q: What if I get stuck?

A: First, don’t panic. Second, as an Algo Trend Trader member, you’ll have direct access to our customer services team. They can’t give you personal trading advice, but they can help you if you’re unclear about any of the signals.

Bottom line: I want you to make money from this exciting new service, and I want the service to be easy for you to follow, so that it doesn’t take up too much of your time — or fill your head with stress — every time you trade.

Start Your 90-Day Trial-Run NOW