FREQUENTLY ASKED QUESTIONS
1. Q . I've been accepted into the Beta Program or have purchased the system. How do I install it.
A. Complete instructions for installation can be found here. You will be sent the appropriate files that will allow you to operate the system properly. If you are having trouble following the instructions contact us and we will help you resolve the issue.
2. Q. What type of system do you need to run your program.
A. Our program runs as a strategy under the Ninjatrader platform. The platform can be downloaded at Ninjatrader.com. We recommend the following computer setup: (1) a cable or dsl internet connection with a minimum connection speed of 5Mbps down and 1Mbps up. The connection must be stable and uninterrupted. We recommend hardwiring your trading computer into the router or modem rather than using a wireless connection but this is not mandatory as long as you have a relatively new router. Be sure the router is secured.; (2) Two screens of 20" inches or more. You can trade on a single screen and we often use our system on a 15" inch laptop when traveling but the additional screen space is nice when you are first starting out; (3) You need a Core I3 (third generation) or comparable system. Basically, the system should score a Passmark score of over 3000. You can go here to see if your system is sufficient: www.cpubenchmark.net. We recommend 6 gigs of Ram and a 250GB hard drive. An SSD drive is even better. Graphics requirements are minimal. The onboard graphics of any processor with a 3000 Passmark score should be sufficient. We recommend INTEL over AMD. You never want your equipment to be the cause of any losing trades. Equipment is not that expensive anymore so be sure you get quality components.
3. Q. What is the cost of the system
A. We use a licensed based model. There is a quarterly fee of $240.00 per quarter. You are billed monthly . When you first sign up you receive the files necessary to run the system. These files are tradeable and valid until the expiration of the next futures quarter. At that time you will receive new files which will work in the subsequent quarter. Your first bill will be prorated depending on how far into the quarter you joined, The files are updated quarterly to reflect the rollover of future contracts. The sales price of these contracts are part of the formulas which provide trade signals. Accordingly, they need to be updated every quarter or they cease working properly.
You can cancel your subscription anytime after the first 30 days and you will only be charged the pro-rated amount you owe based on when you terminated. If you have pre-paid any amount you will be refunded the amount you pre-paid. Once you cancel you can continue to use the files until they expire at the end of the quarter. You can repurchase the system the next quarter but you will only be permitted to cancel and repurchase one time. After that you will not be permitted to repurchase the system after a second canellation.
We anticipate that the price will move up at some point in the future to $300.00 per quarter. Your price will be locked in at whatever rate you are charged when you first purchase.
Our fees are exclusive the fees you need to pay to operate the NinjaTrader platform. You should consult their website to determine the amount of these fees.
4. Q. Does your system send back any information to you regarding account numbers , information on my computer, or trades?
A. No it does not nor does anything in Ninjatrader even allow us to attempt to do this. Each file that is distributed contains a unique license number. We can see whether a license number is on use and on how many systems. This is done only to be certain that the files are not being improperly distributed. Beyond that information we cannot access anything else on your system.
5. Q. There are many trade signals generated, how do I know which ones to trade and which to pass on?
A. There are three components to a valid trade under our system. First, you must receive a trade signal long or short. This you must decide whether the Decision Tree supports the trade and finally you must decide whether there is too much resistance to allow the trade to proceed forward. These items are all covered in the manual and on the videos on our trade school page.
6. Q. What is "Time Shift" analysis?
A. One of the most difficult aspects of trading is understanding how the trade you are about to enter correlates to the broader picture of how the stock you are trading is performing on the day. For example, it is not uncommon for day traders to trade a 5 Minute Chart. In fact, that may be the most popular chart used by day traders. What happens if you are looking at a 5 minute chart and see a buy signal but at the same time a 30 minute chart may indicate a sell signal or a potential exhaustion of your 5 minute chart trade? Inevitably, you end up in the losing end of the trade. You need situational awareness of various time periods in order to be successful.
With our system, you trade 2 Minute charts. However, underneath the surface, the program is monitoring that same security at various other time periods such as 5 Minutes, 10 Minutes, 20 Minutes and 30 Minutes. Our strategies are all coded to look at these other time periods before generating a trade signal on the 2 Minute chart you are looking at. Why? So we can help to determine whether the trade that is developing will run up against trends occurring at various other time periods.
7. Q. What is the "Decision Tree"?
A. The Decision Tree is an ingenious tool which helps predict the success of a trade by monitoring general market conditions and giving you direction as to whether to enter a trade using color coding. Basically, the system analyzes the direction of the market and gives you visual cues as to whether the market is headed up , down or is flat. When the market is headed up you are looking to enter long trades and avoid short trades. When the market is headed down you look to enter short trades. In application, using the Decision Tree is quite easy. When you receive a trade alert, you are notified if it is a long or short trade. If it is a long trade, then you check the Decision Tree to determine whether the trees are green indicating the market is headed up. If the Decision Tree is green the trade becomes a valid trade under the system. Likewise, if the trade signal indicates a short trade, then you look to see if the Decision Tree is red. If it is, it is a valid trade to the short side.
The Decision Tree actually tells you the degree to which the market is moving thus giving you an even better indication of whether your trade is likely to be successful For example, the market may be headed up modestly or aggressively. If the market is going up only modestly, the trees turn an orange color. Conversely, if the market is headed up aggressively, the trees will turn a bright green. If you are trading long, for example, your chances of success are much greater if the trees are bright green when you enter your trade.
You should watch the video here showing the Decision Tree in action.
8. Q. Can I trade on a part time basis?
A. It really depends on what your goals are. If you are simply looking to make 100-200 dollars a day on one or two trades than yes you can probably trade for an hour a day and hope you get a trade where all you indicators line up and you make a quick profit. Realistically, if you want to get into that 500-1000 dollar a day range you need to sit by your computer the whole day. One thing we definitely DO NOT recommend is multitasking while you are trading. You should not be working on other things or surfing the web when you are trading. You should be watching the system and checking out the alerts as they come up. There is a definite rhythm to trading. The more you pay attention to what you are doing the better you will do.
9. Q. Are certain times of day better for trading than others?
A. Yes. First, we don't recommend that you enter any trade during the first 15 minutes the market is open (until after 9:45). The opening is very volatile and trades often don't follow any logical or discernable trend. You may still get alerts under the system during this first 15 minutes the market is open but trade them carefully. We will sometime enter a trade during this period if the Decision Tree is strongly in favor of the trade. Other than that we simply stay away. From 9:45 to 11:45 is what we consider the prime trading period. There is generally good liquidity and volatility during this time period. Starting at 11:45, volume begins to decrease as people go on their lunch breaks. From 11:45 until 2:05 things are quiet and we generally only enter a trade if we have very strong Decision Trees in our favor. You immediately notice how slow stocks are to respond or move during this period. Between 2:05 and 2:15 there will be a volume surge as people enter trades after coming back from lunch. The surge lasts maybe 5 minutes and the surge generally pushes the market in the direction the market was headed before lunch. For example, if the market is up 100 points at 11:45, when the "surge" occurs it is likely to drive the market up. You can trade the surge but we recommend scalping any surge trade. In other words if you get a .10 -.20 move in your trade get out immediately. Once the surge ends, stock typically retreat to their pre-surge levels. Between 2:15 and 3:45 tends to be a good trading time although volume remaines lower than during the morning. In our afternoon trading sessions we again rely much more on scalping than we may in the morning.
10. Q. What is Remote Access Setup
A. Getting your system up and running is one of the biggest hurdles to being successful. We have detailed instructions on this site about how to load the system and create all the necessary charts. If, however, you would like us to set everything up initially we will. Using either TeamViewer or Chrome Remote Desktop we can access your desktop and get the system properly installed. Under either system you can grant us one time access to your desktop. After our session is complete, we have no further access to your computer. If we are trouble shooting a problem we frequently also request access to your destop in this fashion. You are free to watch everything that goes on and terminate the session at any time.
11. Q. Who is is FPR-Tradingsystem and what does it stand for. How can I be sure it is not a fruadulent enterprise ?
A. First, you must recognize that daytrading is an inherently risky and difficult undertaking. According to SEC statistics, well over 95% of people who attempt to daytrade end up failing. There can be no guarantees that you will be successful. Some traders are great and do quite well. Others trading the same system fail. While the System attempts to take as many subjective analysis requirements out of the trading process, not all can be eliminated. Accordingly, what one person sees as a winning trade, another sees as an opportunity they should pass on. It takes realistically 12 months to practice and get the confidence you need to trade and be successful.
As to what FPR-Tradingsystem means - the FPR stands for "Flag Pattern Reversal". FPR is a well known longer term trading strategy that involves finding flag patterns on charts and entering a trade based on that pattern. The strategy is generally applied to charts which are weekly, monthly or yearly in length. We took the concept and tried to apply it to daytrading. Our manual details this strategy in detail. Our manual was written in 2005-2007. With the market crash in 2008, much has changed in terms of being able to successfully daytrade. Specifically, volume and liquidity has all but evaporated from the market. Why is this important?. Because volume creates trends and trends are what daytraders look to trade. Now, instead of trends, you get choppy and inconsistent price changes. There is greater volatility in some respects but the volatility is much more difficult to trade. How much has volume fallen? We used to monitor the QQQ or (QQQQ) as part of our trading activities. Back in 2007, there were days where the QQQ's would trade between 300 and 400 MILLION shares a day. Now if the QQQ hits 30 Million shares in daily volume it's lucky.
Our news system tries to avoid the consequences of this tough trading environment in a few important ways:
1. First, the program looks at real time support levels over multiple time frames. Why is this so important? Because we are looking for trades with reduced risk. Trades that won't immediately turn against you and result in a disastrous day.
2. We have moved towards recommending getting out of trades with shorter or smaller gains. Scalping can be highly profitable and can be one of the safest methods of daytrading. We use a modified scalping technique. We trade 1000 share blocks and look for trades to go between .07 and .15 cents. At that point, we will either pare out or our position or get out immediately of our entire position. We found that it is much easier to determine when a stock is going to move .10 cents within the next 10 minutes than it is to determine where a stock will be in 1 hour. In a typical day, we will look to make 7 to 12 trades with an average net of .10 cents and an 80-83% success rate. Of course you will have losing trades but if you manage those properly you can limit their impact on your profitability.
3. We use the futures as our leading indicator to tell us where the market is going. Our Decision Trees give you an indication of where the market is going and how fast. If you trade with the market the chances of your success are substantially improved. The Decision Trees can also aid you in determining when it would be a good idea to get out of trade.
Finally in terms of who we are there have been many people involved in this project from traders to programmers. FPR-Tradingsystem.com, Inc. is an Ohio corporation that has been in existence since 2008. The principal of FPR-Trading Systems is Michael D. Bornstein. He is a Dean's List graduate of The Ohio State University and has his law degree from The Washington University in St. Louis where he graduated as a member of the prestigious Order of the Coif law honor society reserved for people graduating in the top 1-10% of their law school class. He has practiced law in the State of Ohio for the last 20 years in addition to trading although the last several years he has spent most of his time trading.