Chuck LeBeau�s System Traders Club Announces:

The �PIRANHA� S&P TRADING SYSTEM

76% Winners - Profit of $305,037.00 - Trades long and short

http://www.traderclub.com/systems_piranha.htm

Background

The Piranha S&P System is swift to enter and swift to exit. Much like its notorious namesake, the intent of the Piranha System is to quickly take numerous bites out of the S&P market. The system trades aggressively both long and short, buying on dips and selling short on rallies and is very capable of producing excellent profits on both sides of the market. The system uses the direction of interest rates to help determine whether the odds favor going long or short.

Strengths of the System

Using the reduced $250 S&P point value throughout our historical test period and trading no more than one contract at a time the system has produced more than $300,000 in hypothetical profits in ten years and ten months of trading. The system is unusually accurate with 76% percent winning trades (119 winners out of 156 trades). There were 16 consecutive winners and the maximum consecutive losers was only 2. After adding $150 to every loser and subtracting $150 from every winner to allow for slippage and commissions the average trade (win and loss) was a very healthy $1,955.37. The largest winning trade was $15,475 which accounted for only 5% of the total net profit. The system has a solid profit factor (gross profit divided by gross loss) of 3.33.

Weaknesses

Although the average losing trade is $3,537, the $10,000 money management stop exposes us to the potential of very large losses if our other exits do not kick in sooner.

Summary

We are very enthused about the potential of this innovative system and there are many features that we like. The use of interest rates as a forecaster of stock index prices has been well tested by many technicians and appears to be a valid approach. We like buying the S&P after dips and selling short after rallies. We like the frequency of trading which also allowed us to obtain a large sample of trades in our historical testing. The simple exits are quick to lock in profits and also keep most of our winning trades from turning into losers. The results of this system on both the long and short side are the best that we have achieved in any of our stock index systems. The Piranha system has performed particularly well in the difficult markets in 1999.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Piranha S&P System is priced at $250.00 and comes with complete documentation, fully disclosed rules and ELA code for TradeStation and SuperCharts 4.0. For the month of November we are offering a special discount when you purchase all three of our S & P Systems the Remarkable, Prudent and the new Piranha. Pay only $650.00 for all three, a savings of $100.00. To purchase the system using your credit card phone 310-265-9776 or send by fax to 310 265-9556. Members may also use our online order form on the web site at http://traderclub.com/systems_order.htm

As of today this system is included in the Traders Club Signals Service. Subscribers to the service will receive signals for these systems along with all the rest of our systems. If you would like more information about our daily Signals Service go to: http://www.traderclub.com/signals.htm


For more details about system performance including an equity chart, charts of all the trades and a complete trade by trade report please go to http://www.traderclub.com/systems_piranha.htm

Chuck Le Beau's System Traders Club
http://www.traderclub.com
mailto:[email protected]
ph 310-265-9776
fax 310-265-9556