2/04/2000
K.T.D. (edited)
address (edited)
address (edited)

To Whom It May Concern,

This is a letter detailing the merits of one of Scott Magnuson's personal trading systems and what it has done for me.

Let me start off by sharing my general experience trading commodities. I have a background in electronics design. I found it interesting that the math involved in my electronics work had many similarities to the technical indicators currently used for market analysis. I thought this gave me an edge. What I found was that it takes a lot more than an understanding of technical indicators to make money in the markets. Unfortunate but true, I have a strong tendency to allow my emotions to ultimately govern my trades. I hate losing money, so I generally would trade with unreasonably tight stops. To make matters worse when I would get a small lead on a trade I would move my stops up too quickly and get stopped out of a good trade prematurely. I have been so persistent about limiting my losses; I actually have caused most of them. As time went on and my losses piled up I got really frustrated and was ready to quit trading completely. Scott sensed my frustrations and asked if I would be interested in taking a look at one of his personal trading disciplines. This is what has happened since then.

Scott's system is a completely mechanical trading methodology that uses a rather unique entry technique and very well defined exit rules. This system is designed to capture intermediate and long-term trends (the ones that make you money), and is based on trading a diversified "basket" of commodities. At first glance I was not convinced that this system would be profitable, but I thought I would give it a shot. I started trading the system last October. My "basket" included the following: 30 yr. Bonds, Dollar Index, Wheat, Corn, Cattle, Cotton, Sugar, Cocoa, Crude Oil, and Copper. After about a month I had about 3-4K in negative equity for the system and was really questioning whether I should continue trading it. Right about this time I had to go out of town on business. At that point I stopped trading the signals the system was generating. ..this was a bad decision. I continued to monitor the markets after I stopped trading. I missed out on profitable trades in the following commodities: Corn, Wheat, Cotton, Cattle, Cocoa, Sugar, Crude Oil, Bonds and the Dollar. About 9-10k in profitable trades! That was last year.

This year I jumped right back in trading the "basket". I have taken over $5,500.00 off the table in profitable trades and have approximately $5,500.00 in positive equity on current trades, all based on signals that Scott's system has generated. Please understand that January 2000 has been an exceptional month for many of the commodities markets. The point is, if you trade this system you will be in a position to take advantage of these price moves when they occur and profit from them. After working with the system for a week or two, I found that it requires 10-15 minutes a day to keep up with the signals and place the orders. For me, the best part of the system is that it generates signals based on what the markets are doing, not what I believe the markets will do. Now that I have been removed from the decision making process, my stress and anxiety about trading have been reduced considerably. Thanks Scott.

Sincerely yours,

K.T.D. (signature on file)

Reference:
17 Essential Rules for Successful Futures Trading

*The above individual has not been compensated for these comments. Copy of original testimonial/affidavit on file.