Frequently Asked Questions
- When I subscribe, do I receive a login ID & Password for accessing Special Reports and other Publications?
- No. All Special Reports, ongoing publications and other bonuses will be e-mailed and/or mailed to you once your order & payment have been received and processed. Our website is intended to provide excerpts of our information and analysis to familiarize traders with our approach and to answer as many questions as possible so that a trader can make an informed subscription decision.
- Which markets should I focus on? I only like trading xyz futures… is this one of your best markets?
Our approach to trading is built on the premise of trading a portfolio/combination of contracts that are (1) closely correlated (e.g. Soybeans & Corn or Bonds & Notes), (2) partially-correlated (e.g. Yen & Gold) and (3) heavily non-correlated (e.g. Cattle & Stock Indices or Coffee & Dollar Index). Ultimately, any form of technical analysis & trading is - for lack of a better term - a ‘numbers game’. It is based on probabilities and statistics, requiring a significant range of factors and data points to perform at its best.
In order to achieve this diversity, a portfolio of like and unlike positions needs to be built & maintained – recognizing that different signals in different markets will perform differently at different times. Failure to do so results in the proverbial ‘placing all one’s eggs in the same basket’ and becomes more of a game of luck or chance – almost like playing the lottery – instead of a calculated endeavor.
As a result, we do not advocate picking a ‘favorite market’ or focusing solely on one complex… unless a trader is able to commit several years of time before assessing the results. The reason is simple… If it takes 20-25 data points (approximate) in order to make a reliable basis for comparison, this can be achieved in 1 of 2 ways. Either a trader trades a portfolio of markets and executes 20-25 trades in a 6-month period (again, this is approximate and is intended primarily to illustrate this contrast) OR this trader focuses on 1 market and waits until 20-25 trades have been generated in this single market before assessing the results. This could take 2 or more years to trigger that many short-to-intermediate trades (the crux of the Weekly Re-Lay service) in one market.
- Are you a stock-picking service?
- INSIIDE Track Trading is NOT a stock-picking service. We are a CTA (Commodity Trading Advisor) registered with the NFA & CFTC (National Futures Association and Commodity Futures Trading Commission), analyzing contracts and indices in the commodity futures markets. We do provide cycles & analysis on stock indices (S+P 500, Nasdaq 100, DJIA, etc.) for which there are futures contracts. We also provide cycles & analysis on precious metals, oil and other markets for which there are related equity indexes (XAU, XOI, etc.). Many readers have expressed how they use our cycles and timing indicators to apply to their invesments in related areas. However, this type of application of our services must be done on an individual basis and each reader is solely responsible for his or her own attempts to correlate these analyses.
- Who uses your services?
- We have heard from a wide diversity of readers over the past two decades. Our subscriber base has included the head of commodity trading at one of the largest brokerage houses to individual traders with very small accounts… and everyone in between. We have had stock brokers, futures brokers, mortgage brokers and bankers, fund managers, trading advisors, pool operators, consultants, oil traders, financial advisors, floor traders and many other professionals – and non-professionals – utilize our services and Eric’s analysis in many different ways. Since we cannot identify whether or not our services are a perfect fit for your situation, we offer a variety of free samples, archived publications and a trial subscription to new readers… to allow you to make the best decision for your unique situation. (Some of the comments from these past and current readers can be found at Testimonials.)
- Can I use your service to time mutual funds or other investment vehicles?
- See above Q&As. Based on feedback from many past and current readers, our services have been applied to a diverse array of related vehicles and investments. However, they are structured for the commodity futures markets, so a reader must do his/her own conversion of how this analysis can be used to apply to other investment vehicles.
- What is the frequency of your publications?
- The Weekly Re-Lay is a weekly publication focused on the short-to-intermediate-term trends and supplemented by intra-week Alerts sent when market action necessitates. INSIIDE Track is a monthly newsletter and is supplemented (optional) by INSIIDE Track Intra-month Updates (an add-on service). INSIIDE Track Intra-month Updates are geared to the intermediate-to-longer-term trend and sent a minimum of 3xs per month with extra updates generated when the DJIA closes 200 points or more in either direction.
- Is your approach a ‘black box’ system? Are all your trades completely mechanical?
- Our approach is not a black box system, instead combining mechanical signals with cycle & wave analysis, filtered by money management and risk criteria. So, whereas about 75-80% is based on mechanical signals, the remaining 20-25% is more subjective and/or discretionary.
- Why do you not have a trade in gold (or other markets) every week?
System Trading Strategies, included in our publications, are a limited application of Eric Hadik’s indicators and trading principles. They are built around a specific combination of indicators and represent a minority of the possible actions that can be taken in response to the analysis. System Trading Strategies strive to focus on only the ‘best of the best’ trading signals (the ones with greater synergy and reasonable risk points) as part of our belief that trading should be treated as a business, not a hobby or a game of chance. This does NOT guarantee success or eliminate losing trades. Instead, it relies on signals that have the highest ranking, based on a combination of factors. Our Introductory Letter elaborates on this principle and provides additional explanations and descriptions, including the following quote:.
“The Weekly Re-Lay service is structured for more active traders. As such, it offers short term and short-to-intermediate term analysis, trades and perspectives. The trades are intended to choose the highest probability/lowest risk opportunities based on synergy. In addition, the daily and weekly trends are provided as guidelines for trading when a ‘system’ trade is not generated or in force.
The goal of the Weekly Re-Lay trading system is NOT to catch every move in the market, but rather to choose the highest probability, lowest perceived risk trades based on a proprietary combination of indicators. These strategies are selectively chosen and only represent a portion of the possible trades in each market.
As such, specific analysis does NOT always lead to corresponding ‘system trades’ if a proper entry signal - with prudent risk parameters - does not present itself. These trades are aimed at traders who have learned to treat trading as a business… not simply as a source of excitement.
Just as most businesses focus on a few opportunities or products at any given time (those deemed to be the best choice and with the highest profit-potential or market-appeal), so, too, does our approach to trading select only those trades that are perceived to have the best potential.To reiterate, the goal is not to overtrade, but to accurately trade!”
- Why use options in some trades and futures in others?
- A- The choice between futures and options is based on a combination of factors. These include risk & money management (if the risk is too great for futures, an option will be considered as long as it fulfills other criteria), specific trade-trigger mechanism (what combination of indicators triggered the trade), anticipated duration of trade (based on cycles, normal duration of specific trading signals, etc.), anticipated magnitude of trade, position within the overall wave structure, position within the overall cycle structure and some proprietary factors.
Each approach has its own benefits and drawbacks, which are factored into the ultimate decision-making process. Although the signals are mostly mechanical, there is also a level of discretion in the trading strategy process as well.
- Why are there not more charts in your publications?
Charts are not a large portion of the service since these can be obtained in any number of places (free of charge) and since we have come to the conclusion that yes - 'a picture is worth a thousand words' but ALSO 'looks can be deceiving' (so those thousand words might not be worth too much if they are misleading)... so our focus is on the numbers that make trends and trend reversals a very objective - instead of subjective - tool.
This is also why we will address approaches like Elliott Wave & cycles from a 'backdrop' perspective, but focus on the specific price patterns that we have developed (the more objective tools and indicators)as filters for these subjective approaches to market analysis.
Charts and diagrams are occassionally inserted in our publications. However, we have come to realize that although 'a picture is worth a thousand words', more often than not 'looks can be deceiving'. Although we extensively use charts in our analysis, it is/are the numbers that give the signals and cannot be misinterpreted (they can be wrong, since all trading is a numbers game based on probability and risk control, but the patterns themselves are only clear in the numbers/data).
- Are there times when the analysis will not generate a trade?
Yes. Actually, there are times when the analysis will pinpoint a move in which system trades are not generated or in which there is insufficient time to act on them. Risk control is also a vital factor. However, this is also the reason for both analysis and system trading strategies. The analysis is for all to use either within the framework of their own analysis & trading parameters or on its own. We understand and acknowledge that every trader has a different tolerance for risk, activity and devotion of time and attention.
System trades, by contrast, are geared to those traders that want to take only the 'best of the best' (NOT guaranteeing profits but having the best perceived combination of these aforementioned factors)... much like a business owner only focuses on the products that offer the best potential for his business (as oppossed to an accountant worrying about great opportunities he/she missed in the real estate market, etc.) and remains focused on only a few of these.
It is our sincere hope that readers will be able to use and benefit from our services in multiple ways and to improve and enhance their own trading programs, as a result.
- Does alleged market manipulation alter or skew the cycles you follow?
While various forms of market 'manipulation' will extend or shorten certain trends and distort short & intermediate term indicators (creating some false countertrend signals that work for a brief period of time and then are abruptly overridden), I do not believe they alter the underlying cycles (except, perhaps, for some short-term ones). This is another facet of market action that the charts and technical analysis recognize, even when the fundamentals are hidden and/or related news is non-existent.
A perfect example is the Gold market. In the late-1990's (Cycle of Time Reports, etc.), I explained why Gold had a unique 19-Year (and related, 12 & 7-Year) Cycle that would create a major bottom in 1999 (19 years from the 1980 peak). I explained why this should create a 7-year - and ultimately a 12-year - surge, into 2006 and then into 2011. [Related Reports are still on our website - at http://www.insiidetrack.com/pdf/ITSR20010403.pdf, http://www.insiidetrack.com/pdf/IT2004SRGolde.pdf, http://www.insiidetrack.com/pdf/INSIIDETrackSR200706COTGolde.pdf, etc.]
These longer-term cycles have been reiterated ever since and did help pinpoint the top in 2006. They next pinpoint a major top in 2011. This is in spite of all the central bank selling of Gold - in the 1990's - and Chinese, Middle Eastern, etc. buying in the 2000's. The cycles remain intact and should help - with the aid of technical analysis - pinpoint a multi-year top in 2011.
The beauty of technical and cyclical analysis is that it can recognize - and adapt to, and react to - the underlying forces in the market, whether or not they are known to the investing public. No one ever said that cycles needed a free market in which to work. In many cases, it is just the opposite. And, as demonstrated in so many other areas (wars, earth disturbances, currency swings, etc), cycles are measuring something that has little or nothing to do with a free market.
- To what trading session(s) does the analysis apply? Are the trades focused on New York & Chicago pit sessions?
- Unless otherwise specified, all trading strategies apply to the entire day’s trading session, including electronic trading and/or global trading… as well as the US-based (Chicago & NY) exchange pit sessions.
- What methods of payment do you accept?
- We accept checks or money orders, bank wire transfers (for our int’l clients) and/or use www.PayPal.com as a payment processor, since they facilitate a wide variety of payment options, including credit/debit cards or a checking account.
- How do I subscribe?
- Call our office – at 630-637-0967 - or fax to 630-637-0971 or follow this link (Subscribe).
- Do you protect your members' privacy?
- INSIIDE Track Trading does not rent, sell or otherwise give out your email or any contact information to any third party and uses it only for the purpose of contacting you with pertinent publications and/or current analysis & promotions.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS & ACTUAL RESULTS ACHIEVED BY A PARTICULAR TRADING PROGRAM. ONE LIMITATION OF HYPOTHETICAL PERFORMANCE RESULTS IS THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK & NO HYPOTHETICAL TRADING RECORD CAN COMEPLETLY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. THE ABILITY TO WITHSTAND LOSSES OR ADHEARE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS THAT CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR THE IMPLEMENTAION OF ANY SPECIFIC TRADING PROGRAM THAT CANNOT BE FULLY ACCOUNTED FOR IN PREPATATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSLEY EFFECT ACTUAL TRADING RESULTS.
For explanation of terms & indicators, see Eric Hadik’s Tech-Tip™ Reference Library or www.insiidetrack.com. All Tech Tips™ & the term Tech Tips™ are trademarks of INSIIDE Track Trading. Information is from sources believed reliable but accuracy cannot be guaranteed. Principals/employees/associates of INSIIDE Track Trading may have positions in cited contracts. No part of this publication may be re-transmitted or reproduced w/out the editor’s written consent. All analysis & trade strategies are based on the entire trading session (not just ‘pit-session’) unless otherwise specified. Trading Strategy results are based on entry & exit at the recommended levels and do not account for slippage or commission costs. Readers using this information are solely responsible for their actions & invest at their own risk. Copyright 2007 INSIIDE Track Trading Corporation
Past performance is no guarantee of future results. Futures trading involves substantial risk.
POB 2252 Naperville IL 60567 630-637-0967 // 630-637-0971(fx) INSIIDE@aol.com www.insiidetrack.com