APPENDIX A
Interviews with Abletrend Users
Disclaimer: The interviews and testimonials were provided by customers of AbleSys without compensation. AbleSys believes they are true, but has not independently verified them, nor has AbleSys attempted to determine the experiences of these customers after the interviews were given. Past results are not necessarily indicative of future results.

JOHN MEYER

The current financial crisis offers the absolute BEST conditions for trading, lots of movement (volatility), which provides unprecedented opportunities.
—Interview with Dr. John Meyer—M.D. and trader, Georgia1
 
Grace Wang: Dr. Meyer, how long have you been trading?
Dr. John Meyer: I’ve been trading in the futures markets for 10 years.
What do you trade?
I day trade the S&P E-mini and trade Forex.
What is your occupation?
I am a radiologist (MD).
How many other trading software programs did you use before using AbleTrend?
I have used several other software programs but none has the power of AbleTrend. Specifically, none of the others has the power to find trend changes early and reliably and then, to follow the market very precisely. I have used Bill Williams’s
“Profitunity” indicators, but they are imprecise and tend to build a large pyramid that crashes against a position. I tried Advanced GET, but Elliot wave trading does not follow a market and tries to impose a wave pattern. Elliot wave experts admit that this wave pattern does not actually exist in a market 40 to 50 percent of the time. I tried using other Elliot wave trading programs but the same problem exists. No one can impose upon the market. The market tells the trader what it is doing. I used Kwikpop indicators, including their “special proprietary indicators,” but there are too many indicators and the charts are cluttered.
I tried all the standard indicators, which are packaged in trading software, but they are confusing. I tried using CQG with some of their add-ons, including those of Tom Demark, but there are too many things to watch. CQG has the best support and charting app but AbleTrend is simple to use and gives a true picture of what is happening and likely to happen.
I have used John Ehlers’s cycle finding methods, but they are similar to Elliot wave software in that they try to impose themselves upon the market rather than let the market show what it is actually doing. A trader does have to have knowledge of the market and chart patterns, but I find that AbleTrend is more reliable than my personal reading of the charts most of the time.
In your opinion, what are the main differences between other software programs and AbleTrend?
AbleTrend can find a trend very early. One of the other main differences between other software programs and AbleTrend is that AbleTrend has the truest dynamic support and resistance indicators that I have seen (trend 2). These indicators work fine with default settings. AbleTrend lets a trade develop and controls potential losses well. A trade needs to “BREATHE.” The market tells the trader where it is going so that he or she can confidently follow it and make money. The program does this in real time better than a human can!
What are the most important factors in trading? How does AbleTrend help?
I have found that the most important things in trading are:
(1) Finding the trend early, (2) Entering on retracements to control losses, and (3) SUPPORT and RESISTANCE in real time. It is also important to STAY IN THE TREND until the market takes you out. You can scale out when you meet a target if you like. AbleTrend shows me how to do these things with precise accuracy and elegant simplicity. One additional very important thing is AbleTrend helps one to control one’s emotions and (often wrong) “gut” feelings about the patterns. AbleTrend gives one confidence to enter and exit positions. AbleTrend gives one confidence to STAY IN a position.
Were you able to find good trades during the current financial crisis? Could you give an example?
The current financial crisis offers the absolute BEST conditions for trading, lots of movement (volatility), which provides unprecedented opportunities. I have attached two examples of AbleTrend giving buy/sell/stop signals.
FIGURE A.01 S&P 500 E-mini futures, 2-minute chart of 11/10/2008. Very good trading signals were shown for intraday trading.
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FIGURE A.02 EUR/USD daily chart of last 6 months, updated 11/11/2008. AbleTrend sell signal was first shown in July of 2008.
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Do you have the confidence to use AbleTrend in trading for years to come?
Yes. Because AbleTrend is not a curve-fitting software, it facilitates a trader to build reliable trading skills to follow the market objectively, therefore I have the confidence to use AbleTrend to make a good living day trading and position trading. I love the markets and I love trading.

BOB SEIFERT

I have great confidence in AbleTrend to help my trading in the coming years.
—Interview with Robert J. Seifert—Professional trader and fund manager, Nevada2
 
Grace Wang: What is your occupation?
Bob Seifert: Professional trader.
How long have you been trading?
I have been a professional trader for over 30 years. I traded on the floor of the CME and CBOT for over 15 years, in addition to running two successful option trading firms.
How long have you been using the AbleSys software?
I have been using AbleTrend for about 10 years.
What types of markets do you trade?
I have traded all types of markets using AbleSys software.
How many other trading software programs did you use before using AbleTrend?
I have used many types of software over the years, including my own.
In your opinion, what are the main differences between other software programs and AbleTrend?
AbleSys gives consistent signals.
What was your experience learning to use AbleTrend? How long did it take you to feel comfortable using it?
My experience has been positive. However, you must have knowledge of markets, and know what phase of the market you are currently in to get the best results.
What do you believe are the most important factors in trading? How does AbleTrend help?
The most important factor in trading is to manage your risk capital. Money management is the key, you must know how much of your current capital can be invested in each trade. With a trend-following system, whipsawing is vicious. As a former pit trader, I like to use AbleTrend to help me find areas of congestion so that I can use it to swing trade. When the market is set to break out, I use it to keep me in a trade for the maxim profit.
Were you able to find good trades during the current financial crisis? Could you give an example or two?
The past year has represented some of the best trading opportunities I can ever remember. The problem was to manage the risk as the volatility soared. I found that AbleTrend worked extremely well on gap openings. If the market opened on a large gap to the upside/downside, I would wait until I got a buy/sell in my shortest time frame and would enter; most of the trades were quick and I had a high percentage of winners. Some of the trades would last an entire day. Obviously it helped if you only took the trade on the side with the longest time frame. Selling gaps using AbleTrend to the upside in October and November was like printing money.
Do you have the confidence to use AbleTrend in trading for years to come?
I have great confidence in AbleTrend to help my trading in the coming years. AbleTrend suits my philosophy of trading. I believe that in order to be successful you must be reactive to all markets; prediction is very difficult. I have never met anyone who can pick tops and bottoms on a constant basis. I believe that reacting mathematically to market conditions gives the best results in the long run.
I know that you have been teaching trading too. Who are your students and what do you teach?
Yes I have been involved in teaching for the past years. My students vary. I have taught novices who are just getting into trading and I have taught ex-CEOs who want to take control of their portfolios. I teach them the basics of market analysis and then use that as a building block to train them to apply those principles to the options market.
There are many options trading software programs. Do you have any opinion about software that is available?
There are many programs on the market. Some are very good, but most of them are extremely complicated. I try to reduce the options model to a basic level. Students are surprised how versatile options can be when they learn to use them to enhance many of the trades that they are currently making.
What are the key factors in options trading?
There are a couple of key factors. First, you must use sound technical analysis to get yourself into a position to react to the right options trade. Once you have a grasp on what is going on in the market, you can take that information to give you the “edge” when you initiate the trade. After the trade is in place, you must manage the risk and reward side of the trade. I give the students several ways to run their profit and loss strategies.
Secondly, you must maintain your discipline when things go wrong. I tell my students that no matter how successful you are trading, there are times when nothing will work. What separates the winners from the losers in the market is how you handle yourself when the inevitable drawdowns occur.
Finally, I teach them to manage their portfolio. I don’t use many conventional methods here. I instruct them to view their options portfolio the way most professional options traders do. I give them the tools they need to go from running a single position to the tools they need to run an entire portfolio. Once the fundamentals are in place, running an entire portfolio is not that difficult.
AbleTrend provides market direction and support and resistance levels for underlying markets. I wonder how do you apply AbleTrend to options trading?
Just because you are using options as your trading vehicle does not change the need to have sound technical skills. Identifying support and resistance levels in the underlying market is a very big key. I use AbleTrend to help me to find those levels, and then I use the directional market feature to help me react to the market. Options require many of the same skills that all good traders use. The difference with options, excuse the pun, is that they give you so many more options!
Can you tell me about your time at the CME?
In addition to over 30 years of successful trading, I was instrumental in designing many of the options contracts that are currently being traded at the CME Group (NASDAQ Symbol CME). I served as Chairman of the Agricultural Options Committee, Chairman [of the] Options Cabinet Committee, Vice Chairman [of] IMM Options, Vice Chairman [of the] Eurodollar Options Committee. I conducted options trading seminars on behalf of the CME in New York and Washington, and represented the exchange PAC committee in Washington.

HARVEY SAFF

Both weekly and monthly charts of AbleSys software gave specific sell signals long before this crisis happened.
—Interview with Dr. Harvey Saff—Financial advisor, Florida3
 
Grace Wang: Dr. Saff, how long have you been trading and what is your occupation?
Dr. Harvey Saff: I have been trading in the stock market for 30 years. I trade stocks, options, and mutual funds. I am a retired physician who has taken a secondary occupation in trading. I have become a financial advisor for the past eight years.
How many other trading software programs did you use before using AbleTrend? I used a number of programs before I selected AbleSys software. The programs that I used in the past are AIQ, Wizetrade, and Bestchoice. None of them was as effective as AbleSys. The major difference is that in any time frame, intraday, daily, or weekly, AbleSys provides almost pinpoint buy and sell points. It enables me to see the exact support and resistance areas, making trading more accurate.
How are you doing with the current market situation?
As this past 10 months of financial crisis spread, many people have lost between 25 and 80 percent of their equity holdings. I am pleased to say that I have preserved ALL my capital and also my clients’ capital. In many instances, my clients place their life savings with me and entrust me to preserve their investments. Using the AbleSys trading software, I have been guided to stay out of the stock market since December of 2007. Both weekly and monthly charts of AbleSys software gave specific sell signals long before this crisis happened. It did not require any complex interpretation; it simply and graphically demonstrated the downtrend. My clients and I are indeed grateful.
The current financial crisis, bringing down the stock market in a way comparable to that of the Great Depression, has produced a challenging environment. The AbleSys charts have kept me out of the market, thus saving my clients from economic disaster. With the use of the charts, I have successfully traded, periodically, inverse ETFs. This has proven to be extremely profitable.
Do you have the confidence to use AbleTrend in trading for years to come?
Due to the nature of the AbleSys program, I foresee using AbleSys both currently and in the years to come. It has proven to be an accurate program under all market conditions. As an example, I traded the inverse ETFs DXD and QLD in the month of January. AbleSys clearly guided me to capture and profit from the downward movement in the market.

GERRY WOLLERT

The AbleTrend AutoScan feature enables me to quickly roll through more than 200 potential ETFs in less than 5 minutes, as I look for new trading opportunities.
—Interview with Mr. Gerry Wollert—Fund manager and financial web site owner, Florida4
 
Grace Wang: Mr. Wollert, how long have you been trading?
Gerry Wollert: I bought my first five stocks back in 1964 after taking an evening stock market course at a local community college. I have been trading for over 44 years with very few interruptions.
What do you trade?
I trade ETFs (Exchange Traded Funds). I like the diversification that these trading vehicles provide. ETFs trade just like stocks. They have no minimum holding periods or early redemption fees, which make trading ETFs much more attractive than trading mutual funds. ETFs can also be sold short. Lastly, there are a number of inverse ETFs that can be traded in an IRA during bear market periods.
How long have you been using AbleSys software?
I have been using AbleTrend from AbleSys for over 10 years.
How many other trading software programs did you use before using AbleTrend?
Over the last couple of decades, I have purchased at least a dozen different software programs. Most of them are on the shelf of my closet gathering dust. Only AbleTrend has continued to be my primary trading tool. It truly helps me decide what to trade, when to trade it, and when to get out after I enter a trade.
In your opinion, what are the main differences between other software programs and AbleTrend?
The AbleTrend AutoScan feature enables me to quickly roll through more than 200 potential ETFs in less than 5 minutes, as I look for new trading opportunities.
AbleTrend provides its trading signals for all markets and for all time frames. Once you learn how to trade one market, you will know how to trade any other market with AbleTrend.
There is no data to download. I use eSignal data and there is a seamless interface between AbleTrend and eSignal. The buy and sell signals are clear and require little or no interpretation.
The T2 indicator moves up during a long trade in a stairstep fashion. There is no need to calculate stops—T2 does this for you.
Were you able to find good trades during the current financial crisis?
Since I primarily trade in several different IRA accounts, I generally look for long candidates. During the period October 2007 to February 2009, it was very difficult to find attractive buy candidates. My buy discipline kept the majority of my funds allocated to the safety of the money market and/or inverse ETFs. In mid-March 2009, AbleTrend started giving me buy signals and I have been fully invested ever since. Once again, AbleTrend told me when to get out as well as when it was “safe to go back into the water.”

MIKE WEINGART

AbleTrend 7.0 empowered me to create my own rule-based strategies with back-testing without writing programming codes.
—Interview with Mike Weingart—MBA, CTA, fund manager, Florida5
 
Grace Wang: How long have you been using AbleSys software? What strategy do you use?
Mike Weingart: I started with AbleSys back in 2004. I started with a 30-day trial and liked the software. It was easy to use and set up. In 2007, with the release of the new AbleTrend 7.0 version, I was empowered to create my own rule-based strategy with back-testing without writing programming codes. I was able to develop my own fully mechanical system with AbleTrend 7.0 for the Forex market. I now use my own system to manage clients’ funds.
What is your occupation?
I am now a licensed CTA and I manage money for clients full-time. I owned and operated a finance company that originated residential and commercial loans.
What are the main differences between AbleSys and other programs?
I use AbleSys in a fully mechanical way, optimized for each market. It is like no other program. I am always in the market, either long or short, as the software handles different volatilities and market changes in truly robust and consistent ways. Other programs I have seen are okay for the entries but leave users on their own for the exits. These programs do not give clear indications when to get out if the trade goes wrong or when to book profits. AbleTrend, on the other hand, handles the following key items well:
1. Early entry.
2. Stop loss placement calculated for volatility and not a fixed number.
3. Trailing stops that calculate exits (support/resistance) and keep me in the trend longer than humanly would ever stay in to maximize profits.
4. Money Management or size calculation.
Were you able to find good trades during the current financial crisis? Can you give an example?
I sure can. I was short AUD/USD, GBP/JPY, GBP/USD, and EUR/USD all at the same time in September and October using 240- and 480-minute charts. Most of them gave short signals on about October 20 and buy-to-cover signals on October 27. I know that on GBP/JPY, I booked over 2,000 pips in seven days. The others generated gains of 1,100 to 1,500 pips, so that I had about 5,000 pips in gains for the week. It was truly unbelievable indeed. Using the longer time interval charts was a walk in the park. The volatility did not matter because AbleSys software got my clients and me into the market very early. It was just a matter of how much profit I would have when the storm was over. That may have been a once-in-a-lifetime event, but I was part of it thanks to AbleSys and my strategy.

ALEX KUAN

I have been using AbleSys software for more than 10 years or so, and I trade commodities and Forex markets.
—Interview with Dr. Alex Kuan—Trader, Singapore6
Grace Wang: Dr. Kuan, how long have you been trading?
Dr. Alex Kuan: I have been trading for more than 15 years.
How long have you been using the AbleSys software and what do you trade?
I have been using AbleSys software for more than 10 years or so, and I trade commodities and Forex markets.
What is your occupation?
Medical doctor.
How many other trading software programs did you use before using AbleTrend?
Perhaps two to three day-trading software.
In your opinion, what are the main differences between other software programs and AbleTrend?
AbleTrend, if used properly, can help you identify trends on a consistent basis.
What was your experience learning to use AbleTrend? How long did it take you to feel comfortable using it?
About one week.
What do you believe are the most important factors in trading? How does AbleTrend help?
Money management and having a reliable trading edge. AbleTrend gives me that edge. Were you able to find good trades during the current financial crisis? Could you give an example or two?
Yes. Sugar and soybeans.
Do you have the confidence to use AbleTrend in trading for years to come? Yes.
Could you share some of the exciting trades that you’ve made over the years and explain how AbleTrend helped you succeed?
To be honest, I have tweaked and taken AbleTrend to a new level. I am now able to size up any market by looking at both major and minor time frames. Some of my approaches, trade setup patterns are not even taught by you guys but have been observed in your software on a consistent basis. Observations, which cannot be ignored, have proved highly profitable. I would go as far as to say that accuracy in a properly analyzed market can be as high as 70 to 80 percent. The only “problem” is that such setups don’t happen every day and it takes time and patience for everything to be “in phase” before I hit the buy/sell button. My setups are classified and I hope you understand my wish for them to remain so. I use AbleTrend 7.0 to fine-tune position trades and do not do intraday trading.
At the moment, I’m watching for potential moves in the EURGBP, DX, Gold, and soybeans. The rest of the markets do not fit into any meaningful setups. I usually only make 20 to 30 trades a year and depend on only three to four mega moves to keep me financially comfortable. That, I feel, is the only way to trade profitably.

REMCO EENINK

The main difference between AbleTrend and other software programs is the volatility-based stops . . .
—Interview with Remco Eenink—Retired and trader, The Netherlands7
 
Grace Wang: Mr. Eenink, how long have you been trading?
Remco Eenink: I have been trading and investing since 1994.
How long have you been using the AbleSys software?
I have been using the AbleSys real time trading software since early 2006.
What types of markets do you trade?
I started out with stocks and later I have traded currency futures, silver and gold futures, bonds, oil and natural gas futures, and the Emini stock index futures as well. Now I am only trading the Forex cash EUR and GBP against the USD.
What is your occupation?
I am in early retirement now, and before, I taught German and German literature at college.
How many other trading software programs did you use before using AbleTrend?
I think I bought over 10 different software programs before using AbleTrend.
In your opinion, what are the main differences between other software programs and AbleTrend?
The main difference between AbleTrend and other software programs is the volatility-based stops and that the program uses a trade signal which must be followed by a trend confirmation signal. The software is also suitable for position trading and intraday trading.
What was your experience learning to use AbleTrend? How long did it take you to feel comfortable using it?
I don’t exaggerate by saying that the software is extremely user friendly and its trading methods are very clear and well documented. It did take me only a few hours to get started and to be able to use the basics of the program. Of course, it takes a little more time to master the different trading strategies for position-, swing-, and day trading with different time intervals.
What do you believe are the most important factors in trading? How does AbleTrend help?
The most important factors to be successful in trading in my opinion are not only to know what to do but actually do what you know. By this I mean that all of us know we must be disciplined and only enter when initial risk is small compared to the possible gains, but few traders actually put their own rules in practice. AbleTrend is a great help for the trader because it gives us objective stops and helps us to enter a trend with low risk by using a trade signal, which must be confirmed by a trend signal (T2). Then it is best to wait for a pullback close to the EMA to obtain a low-risk entry point. The way I trade is that I sit in the living room with the door open to my study and when I hear the trade signal I go to my study next door and check for the T2 signal, and if T1 is confirmed by T2, I will sit in my study and wait for the pullback. After I have entered a trade, I return to the living room and check the trade every 15 minutes or every 30 minutes when using a 30-minute chart.
If the entry has been done correctly, it is a matter of discipline to let AbleTrend tell you when to get out. In most cases this will be by being stopped out. AbleTrend makes it much easier for the trader to see what is happening. All this sounds simple and it is, but it is not easy to follow these rules. Many times you feel the urge to close a trade because you think it will not work out or you think your stop will be hit. The only way to trade correctly is not to think and not to guess but simply follow the rules of the trade indicated by AbleTrend, because AbleTrend lets the market itself decide when a trade is over. This is the hard part: to let AbleTrend decide when the trade is over, but it is extremely important for a trader’s success and this is exactly the strength of AbleTrend, which shows me exactly when a trade is over. I only enter a trade from 8 A.M. to 3 P.M. Amsterdam time, because I have found that the best trades and the biggest moves start before 3 P.M. If I am in a trade, I stay in until being stopped out or close my trade at 9 P.M. because I have found that volume starts to drop after 9 P.M. very often. If I have not entered a trade before 3 P.M., then I close down my computer and call it a day.
Do you have the confidence to use AbleTrend in trading for years to come? Absolutely.
Could you share some of the exciting trades that you’ve made over the years and explain how AbleTrend helped you succeed?
Here I refer to the following two trades:
August 10, 2009. I went short on the GBP_USD.
1 lot of 100,000. Entry at 9 A.M. Amsterdam time, 1 hour after the European open. Entry at 1.66714 and close at 9 P.M. at 1.64594. Profit 1849 USD.
Initial stop was at 1.6711 (T2) so my initial risk was about 400 USD. I always strive to a risk of around 400 USD and not much more. I used a 15-minute chart (to save space, the chart is not included here) and T1 together with T2. As you can see, at that point the 30-minute chart also gave a red bar and there was a pullback close to the 10 EMA. Please see entry arrow red and exit arrow blue. I always close positions at 9 P.M. This trade was done according to the STM method as is very thoroughly described in the manual and is also shown in the free webinars.
August 3, 2009. I went long on the EUR_USD.
1 lot of 100,000. Entry at 11 A.M. Amsterdam time. Entry at 1.42734 and close at 9 P.M. at 1.440057. Profit 1271.70.
Here I entered on a blue bar but near the 10 EMA and my stop was at 1.4237 (T2), and that resulted in an initial risk of 360 USD. Please see little arrows for entry and exit. Here, too, you can see that there is at the same time a buy signal in the 30-minute chart. I like to trade the 15-minute chart for Forex because the initial risk is smaller.
Of course, not every trade is a winner but when the losses are kept small, I can make good profits because of the high potential in the EUR and the GBP in intraday trading.

CHRIS ANTHONY

The main benefit of AbleTrend is spotting longer trends that allow you to catch a runner.
—Interview with Chris Anthony—Full-time day trader, North Carolina8
 
 
Grace Wang: How long have you been trading?
Chris Anthony: I have been trading stocks and options for over 20 years but took up futures trading full time about a year ago . . .and I am glad I did. This past fall after suffering tremendous losses in longer-term options spreads I have decided to quit all other forms of trading and focus exclusively on futures, primarily index and currencies.
How long have you been using the AbleSys software?
I believe I signed up in June 2009.
What types of markets do you trade?
I trade ES and YM minis primarily on the CME but I also trade various currency futures as well.
What is your occupation?
I am a full-time day trader.
How many other trading software programs did you use before using AbleTrend?
I used charting software from eSignal and Ninja prior to signing up with AbleTrend. I did lots of research and picked AbleTrend as I perceived it to be the best.
In your opinion, what are the main differences between other software programs and AbleTrend?
The main benefit of AbleTrend is spotting longer trends that allow you to catch a runner. This happens a few times a month and it’s not unusual to make as much or more on these few days as you do the other days combined. For example, if you catch a runner four days a month, it can make you more than the other 16 days combined. This is the biggest advantage that I see. And it’s very easy to use and understand. I have adjusted the settings to fit my style with great success.
What was your experience learning to use AbleTrend? How long did it take you to feel comfortable using it?
It took me about three months of simulated trading to understand how to use AbleTrend. In fact I once changed my plan a bit and stopped relying on AbleTrend as my primary indicator and I began losing money. I have since switched back to AbleTrend and am making money once again.
What do you believe are the most important factors in trading? How does AbleTrend help?
I believe the most important factor in trading is psychology; without a proper mindset, it’s impossible for any system to work. The second most important factor is to understand when to enter and exit trades, and the third is to know the money management. AbleTrend handles the second one very well.
Were you able to find good trades during the current financial crisis? Could you give an example or two?
The best time to be a day trader was when the VIX was over 50 as the market swings were very large, and if you were able to be on the right side of a trade you could make quite a bit. During that time it was fairly easy to earn 6 to 8 full points on most trades on the ES. The market volatility has diminished considerably so my daily expectations have been reduced significantly. . . . I am now happy with 3 points on an ES trade . . . but again, catch a runner every now and then and it’s all good.
Do you have the confidence to use AbleTrend in trading for years to come? Yes, I will continue to use AbleTrend and only hope that some additions are made to the indicators. I currently supplement AbleTrend with other charting software so I can see a full range of indicators. These additions have made me a better trader and have reduced my losses and made my exits timelier.
Could you share some of the exciting trades that you’ve made over the years and explain how AbleTrend helped you succeed?
Without reviewing my past year’s history, I can simply tell you this: Last week was a fairly choppy week, with Friday being a very good trend day. Trading on average 12 contracts, I was able to earn 226 full points on the ES or an average of 1.45 points per trade . . .not particularly spectacular but given the chop of the week, it was a good week. I had 27 trades with 6 losing trades or about a 78 percent hit rate. Without AbleTrend I do not think I could have achieved this rate, and week over week I typically experience about a 70 percent or greater hit rate . . .and four of the six losing trades were not confirmed by AbleTrend. . . . I was picking a top or bottom using my other indicators. Had I strictly followed AbleTrend, I would have earned an additional 138 full points. I am glad that you asked me to do this review. Next week I will follow AbleTrend much more closely and watch my profits go up quicker.

JIM KANE

AbleTrend T2 indicator provides excellent stops as well as entry points.
—Interview with Mr. Jim Kane—Retired and trader, Texas9
Grace Wang: Mr. Jim Kane, how long have you been trading?
Jim Kane: I have been trading, on and off, for 20 years. Several times I got so frustrated that I switched to mutual funds, but that never went well.
How long have you been using AbleSys software?
I have been using AbleTrend software since early 2007.
What do you trade?
Stocks, ETFs, plus some time decay option trades.
What is your occupation?
I am a retired US Air Force dentist and am currently employed as a computer programmer.
How many other trading software programs did you use before using AbleTrend?
I used many other trading software programs as well as numerous newsletters. I currently use Zacks research wizard to help me pick stocks to trade. Zacks suggests what stocks to trade and AbleTrend tells me how to trade them.
What is the most important factor in trading? How does AbleTrend help?
Risk management. AbleTrend T2 indicator provides excellent stops as well as entry points.
Do you have the confidence to use AbleTrend in trading for years to come?
Yes, if AbleTrend software can handle the 2008 market, it can handle any market.
Could you share some of the exciting trades that you’ve made?
My best position trades were probably shorts in MTH, BC, and CC. They just kept going down. Stops based on the AbleTrend T2 indicator were good and helped me move in and out of the stocks to maximize gains. My first year of using AbleTrend, 2007, was the first year in 20 years of investing in which I made more money trading than I made at my day job. On the long side, AbleTrend T2 indicated trending stock behavior in WLT in January 2008. I had a good run in WLT until early June.

DAVID FAWKES

You don’t need to invent a trading system. AbleTrend automatically provides you with clear buy and sell signals.
—Interview with David Fawkes—Trader, Florida10
 
 
Grace Wang: Mr. Fawkes, how long have you been trading?
David Fawkes: I have been trading since 1991.
How long have you been using the AbleSys software?
I obtained a trial version of the software in February 2007 and went to your seminar in Atlantic City in May 2007. The seminar and the manual were extremely helpful. I wish you would have more seminars or have meetings during the year where investors can share their experiences.
Before using the AbleSys technical software, I was a fundamental investor holding positions regardless of market fluctuations. However, I had noticed over the years that even fundamentally good investments fluctuate between over and under evaluation. In some instances, fundamentally good investments actually went bankrupt. How can you avoid holding a fundamentally good investment until you have a complete loss of all of your money?
I needed an early warning system to help me to hold good investments when they are going up and lighten up on them when they are going down.
What types of markets do you trade?
I am a dedicated emerging market high yield currency investor. I strictly invest in Turkish lira, Brazilian real, South African rand, and Mexican pesos. I invest in them through Eurobonds, currency forwards and brokerage cash accounts. I utilize margin and the carry trade (up to 10 percent).
There have been a number of scholarly works that unequivocally prove that high-yielding currencies appreciate over lower-yielding currencies. If you can find an investment that pays you interest north of 10 percent and appreciates in value, you have won half the battle.
Over the last 10 years, these currencies have provided an annualized appreciation of 20 percent, with lower volatility than the stock market. Approximately half of the returns have been provided by the currency interest income.
However, high-yielding currencies do experience violent sell-offs. I utilize the AbleSys system to provide me with sell stops. Once the sell-off is completed, the currencies gradually start appreciating again.
What is your occupation?
I’m a CPA, which helps with the number crunching!
How many other trading software programs did you use before using AbleTrend?
You name it and I have tried it over the last 18 years. Well over a dozen technical systems.
In your opinion, what are the main differences between other software programs and AbleTrend?
You don’t need to invent a trading system. AbleTrend automatically provides you with clear buy and sell signals.
What was your experience learning to use AbleTrend? How long did it take you to feel comfortable using it?
It took me a little less than a year to get comfortable with the system. It is important to modify the system to the markets and time frames to which you trade. I am a medium-term investor investing in trends, which normally last at least one year in length.
I became a true believer in the system in late 2008 when I witnessed the system provide a Daily T2 sell signal on August 13, 2008, for the Brazilian real. Brazil was fundamentally strong and after six years of high yields and currency appreciation, AbleTrend gave a sell signal. I was skeptical and did not sell or hedge my currency position until September 2008. By that time the currency had already significantly depreciated in value.
Once I believed what the system was telling me, I waited until a Daily T2 buy signal was given on March 13, 2009. I bought back my position and experienced significant returns.
What do you believe are the most important factors in trading? How does AbleTrend help?
Before getting started with AbleSys, you need to have a complete understanding of what markets you are trading. Don’t look to AbleSys to select your investments. Look to AbleSys to tell you when to buy or short them. You need to have a complete strategy that continuously evolves over time. Your strategy should be documented in writing. It should have a thesis (kind of a bible of what you will and will not do), and it must have lots of detail of what you will do when your investments go against you. Lastly, it should have a list of things you absolutely will not do . . .but are tempted to do . . .like day trading (for me).
Next, you need to determine what time frame works best for your investments. If you are trading currencies, the Daily T2 provides an excellent indicator. If you are trading emerging market equities, due to the volatility, you need a Weekly T2 signal. Being a medium-term trader (holding positions for about a year), you need to ensure that your system doesn’t provide you with too many buy/sell signals.
You must also have your sell/short strategy in place. For example, when shorting iShares Brazil you need to gradually go into your position. For equities I will gradually short between the Daily T2 and the Weekly T2. You must always remember that an investment does not automatically become buy or sell overnight. I’ve also modified the T2 signal for currencies to make the sell signal a little slower (I call it an Enhanced T2).
Were you able to find good trades during the current financial crisis? Could you give an example or two?
One for the Brazilian real and the other for the Turkish lira. Daily T2 buy signals were given for these currencies in March 2009. I bought on these signals and have made 40 percent so far this year.
Do you have the confidence to use AbleTrend in trading for years to come? Absolutely.