BBTT - Frequently
A medium-term 100% mechanical index trading model.
SPI ē Nikkei ē Taiwan ē Hang Seng ē Dax
ē Ftse ē Nasdaq ē SP500
Frequently Asked Questions
I'm interested in your Back to Basics book. You mention on
the website that it offers a subscription to a newsletter showing you
trading live - is this trading IndexTrader?
No. The subscription is to the Back to Basics newsletter where subscribers
can watch me trade the methodology contained within the Back to Basics
course book. IndexTrader is a short-term system. Back to Basics teaches a medium term trend trading
I have previously read your book on trading the SPI and subscribed to your
free 21 day free trial of Index Alert. I am interested in purchasing the
BBTT Trading System Book however before I do could you please answer a
couple of questions. I have previously purchased trading manuals from
"Safety in The Market" and unfortunately found them not very helpful. I was
constantly being asked to pay more for more extensive "trading education"
which I was not prepared to do. Is your book a complete trading system with
all the rules carefully explained and easy to implement. I would like to
trade the indices via CFDs as I find this the easiest and I can do it online
at any time. I have read everything on your web site and I am comfortable
with a 33% win rate. I need to make sure that I do not need to purchase
anything else other than your BBT Newsletter, should I choose to do so.
There is nothing more that you will have to purchase.
What I'm making available is a two step process for traders to learn.
Firstly providing good theory (the Universal Principles covering money
management, methodology and psychology which is accompanied by BBTT ...a
fully disclosed 100% mechanical medium-term trend trading methodology that
can be used to trade both indices and currencies) and secondly making the
newsletter available for owners of BBTT to see it in action as I personally
trade it on the indices (and I trade Key Levels on forex). The newsletter is
designed to reinforce traders understanding of the theory. For experienced
traders they will only need BBTT and not the newsletter. Traders looking for
additional assurances subscribe to the newsletter.
I am receiving a free trial of Index Alert. I find the track record of Index
Trader quite impressive. I would like to be involved in a system that works
but that I could also afford to trade. I've been trading shares, CFDs and
index CFDs for a while with mixed results, and have ridden the trading
educators' gravy train for many years now. I would feel confident to trade
futures but the capital requirement would make it prohibitive for me just
yet. I would like to know how I could get started with one of your
methodologies. I would be interested in looking at BBTT as a system and
following with the newsletter. -Can that method be used for share CFDs as
well? - Are the exit strategies safe enough to reduce the 67% loss rate to a
minimum. -Could I start from a low capital base and move up in the equity
curve say with a capital of $20K approximately? Thanks.
Thanks for your email. BBTT is a medium-term trend
trading strategy that can be applied to any market. Unfortunately I canít
guarantee BBTT will make money in every market in every year as its almost
impossible from my experience for any strategy to be profitable in every
year in every market since markets donít always trend. As such BBTT is best
used to trade a portfolio of markets which will increase your chance that
you will catch a trending market. BBTT can be used to trade any instrument Ė
futures, CFDS, shares, options, warrants etc. Once BBTT identifies a trade
set-up in your preferred market itís up to you which instrument you choose
to execute the strategy. And CFDs are particularly good since you can
customize your trade size to reduce your individual trade risk that is
appropriate for a 20k account. And unfortunately I can't do anything about
the 67% loss rate. I wish it was otherwise however markets rarely trend and
that is why trend trading, like BBTT, has such a low win rate. However,
since trend traders attempt to trade in the direction of the trend, when
they do catch a win it's usually large which makes up for all the losing
trades. I hope this helps.
Would you be able to send us the actual BBTT trades you have recorded ? (eg
entry date/price and exit data/price) For example all trades for the S&P
Over the last 10 years ? This would verify our results.
A couple of questions if I may. On the performance graph,
what do the two curves represent.
The blue line is BBTTís equity curve, trading one futures contract per
signal, with no money management.
The black line is the SPI chart.
How long have you traded this system
Since the start of 2008.
Does your real time experience match with the model?
Unfortunately not. I trade BBTT on a discretionary basis, picking and
choosing my signals and Iím currently behind the models hypothetical
And fyi BBTT is still officially short the Nikkei which I exited
(prematurely on a discretionary basis). And Iím still kicking
myself because that $3,790 trade is currently worth $10,000!
What size of account would you recommend to trade all the markets.
This is a difficult question to answer as it falls into ďpersonalĒ advice
and Iím only licensed to give ďgeneralĒ advice. In addition every trader is
different regarding their appetite for risk, financial position and
investment objectives. And not every trader uses the same money management
Hopefully the performance metrics on the web site can help a trader decide
an appropriate account balance.
Also the number of markets someone would like to trade will also impact on
As a general idea, if a trader only wished to trade the indices, Iíd suggest
they not consider trading BBTT with an account balance with less then
If they wished to trade both the index and currency futures (13 futures
markets in total) then a trader could possibly consider doing it with a AUD50,000
If a trader only wished to trade the Asian portfolio (i.e. Spi, Nikkei,
Taiwan, Hang Seng, Japanese Yen and Australian Dollar futures) then they
could possibly consider doing it with a AUD30,000 account.
However a trader really needs to determine, either with or without the
assistant of a person licensed to give ďpersonalĒ advice, whether their
preferred account size containing their risk capital would be appropriate
for them given their particular needs, financial situation and investment
In addition if traders prefer to trade CFDs then obviously they could trade
BBTT with a much smaller account size as they cn customize CFD contract
sizes to restrict their dollar risk per trade. With Futures you canít do that
as they are standardized.
How long do you think it would take each day Öonce you are experienced?
Possibly 2 minutes per market looking for set-ups. Then itís up to you how
long it takes you to prepare your order/s. But visually looking for the
pattern on a chart takes only a blink, is it there or isnít it?
I have read through your website and all the products and services you offer. I am
interested in the book BBTT and maybe Trading the SPI. I have been trading
ad hoc for many years and spend fortunes trying to get myself into a
reliable trading system. I have XXXXX XX XXX XXXXXX (editors deletion) and
XXXXXXX (editors deletion) learning
material and systems, spending upwards of $6,000 already and still donít have a
system I can confidently go to the market with. I have read Trading in the
Zone by Mark Douglas and found it a really good trading Psychology book. He
continually talks about thinking in probabilities and having an edge. I
really lack in the edge part, having a sound system in place and achieving
consistent results. I donít care what market I trade, as I have traded most
of them and they are not foreign to me. FX, Index futures, stocks, whatever.
Reading through your site and book reviews your book may be what I am
looking for, but if it is the same as all the other stuff out there, it will
be the most expensive book I have, collecting dust on my bookshelf, which is
my main concern. Most info and systems with trading is nothing more than a
con, but you do seem more genuine, since you do trade what you preach. What
would you recommend to be the best for me to get a sound system to give me
consistent results that you can offer. I know losses are all part of trading
and fully accept that I am totally responsible for every trade I put on.
Thank you for your time.
The best for you, if you believe you can successfully trend trade, is to buy
BBTT as its my best methodology across both indices and FX. But you have to
believe you can trade with the trend successful which really means can you
accept only winning a third of your trades?Ö. because markets rarely
trendÖbut when they do our average winners are bigÖbut you need to be aware
of that and accept losing 67% of your trades. If you purchase BBTT you also
have the option of then subscribing to my BBTT newsletters where you can
watch me apply BBTT every day looking for and trading BBTT set-ups.
If you purchase BBTT you wonít be disappointed and reason why itís a higher
priced book is because I disclose my BBTT trading systemÖ..which has a real
unoptimised edge and does work.
I may be interested in your BBTT. My biggest consideration is, as a current
day trader, would I have the right personality to also convert to medium
term trading. I did that years ago until I realized day trading suited me
much better. Anyway I'll give it some more thought and let you know.
Have a serious look at BBTT. I certainly understand your timeframe
concerns as Iím the same in that I prefer holding only for short periods.
But the reason why I looked into and developed a
medium-term trend trading methodology was to help diversify my results
following IndexALERTís poor performance during 2007.
By March 2007 IndexALERT was into its 6th month of drawdown and that got me
thinking about looking at a different form of trading that would not
duplicate but compliment my short-term trading, and help me stay out of
drawdown overall. So I thought a medium-term timeframe (as opposed to my
short-term) and trend trading (as opposed to much of my predominant
short-term swing trading) should compliment my existing trading and
diversify my results. Particularly as I believed the continuing bull
market in equities at the time caused a contraction in market volatility
that impacted IndexALERTís results. So I got thinking about developing a
medium-term trend trading methodology that if it had legs would have an
equity curve that would compliment my short-term trading results.
In addition I also wanted to develop a methodology for forex to further
diversify my reliance on index trading.
It wasnít until mid 2007 that the ideas of BBTT and Key Level developed in
my head, and it wasnít until October and November that I had been able to
program and prove the ideas and watch them live for a few months to see them
working well in real time. And I had hoped to start trading them in December
2007 but decided not to since as you know I usually shut down by the
second week of December.
Anyway, BBTT and Key Levels came about as I wanted to have another methodology
and market that was different and complimentary to my existing short-term
index swing trading, to diversify my results and I believe I have achieved
In addition you must believe you can successfully trade with the trend which
really means whether you can accept losing 67% of the time as markets rarely
trend. So you need to give that careful thought. Its one thing to see
BBTTís profit potential but its another thing to trade and loss 67% of the
time. Most struggling traders cannot do that.
Also I should say that although I donít day trade I believe BBTT should work
across all timeframes and all markets. Itís basically one huge price pattern
that should work across all timeframes, including day trading. Iíd be
surprised if it didnít work on intra day data, but the downside, as Iíve
said above, is that it is trend trading meaning that you can only expect to
win a 1/3 of the time although when you do win you should expect to see
your wins on average be 3 times the size of our losses.
I have a few questions regarding your BBTT book. What is the main difference
in methodology between BBTT and say your other models Ė IndexTrader,
The main difference would be timeframe and style since theyíre all 100%
price pattern based trading methodologies. All the set-ups across SpiTrader,
IndexTrader, BBTT, Key Level, IndexALERT and ForexALERT are based on 100% price
So the difference would be their timeframe and style. SpiTrader and
IndexTrader are short-term systems where trades last between 1 to 3 days.
BBTT and Key Level are medium-term trend trading approaches where trades
last on average between 10 to 12 days. Although
SpiTrader and IndexTrader do have continuation trend patterns they are
predominantly counter-trend or swing trading patterns. BBTT and Key Level
trading methodology with a low 30% accuracy.
I have been looking at purchasing IndexTrader but then yesterday I looked at
the section on your new Back to Basics book and I wondered why should I get
IndexTrader over the book? To set the scene somewhat I am a complete newbie
at futures trading, in fact any form of trading other than direct shares.
However, I'd like to branch out into some other markets now, hence my
initial interest in IndexTrader. I currently work full-time, with limited
Internet access so a system that can be researched and implemented out of
trading hours would work best for me. Given this scenario, should I continue
with IndexTrader or would purchasing the book be a better option for me?
Itís a good question and the answer will depend on a number of factors.
Firstly they are two different approaches.
IndexTrader is a short-term system with a combination of swing and trend
continuation patterns, with trades lasting between 1-3 days with an accuracy
BBTT is a medium-term trend trading methodology with trades lasting on
average around 12 days with a low accuracy of around 33%.
BBTT is best when you can afford to trade at least 10 marketsÖsince with
trend trading not all markets make money every yearÖso you have to have a
portfolio approach to capture that market that has a good trending year.
IndexTrader can be traded on 1 to 3 markets to begin with and therefore can
be traded with a smaller account and with its shorter average trade length
of between 1-3 days and higher accuracyÖit is easier to trade. However
IndexTrader is more expensive then one of my Back to Basics Trading books
(BBTT or Key Level).
Itís not an easy decision. Although IndexTrader is better suited to the newer
trader as it is easier to trade Iím reluctant to recommend it to you
as it costs (AUD4,500) a lot more. And I should say
it costs more since itís my oldest methodology that I make available to the
public since I launched it 2001 and it's still going as strong as ever (which I
believe BBTT will also demonstrate in time)! But then IndexTrader's
continuing good performance is not surprising to me as Iím a
trader first and foremost and not a dodgy system vendor or educator
masquerading as a trader.
Anyway I hope this makes sense.
I was just reading about your latest course and you mention that subscribers
can see your live trading etc. Is this done in real time via a live chat
room or is this done afterwards via email and newsletter etc?
The live trading occurs before the markets open each day.
Although BBTT can be traded over any timeframe I personally trade is off end
of day bars.
So when a daily session finishes I know whether a set-up has developed or
not for the next day. So each morning before the markets open I send out an email discussing any BBTT
set-ups that have developed and the required trade plan to trade the set-up.
I also state whether I recommend trading the set-up or not and what my
personal intentions are. I usually get the daily email out by 9:30am each
morning. So traders know exactly what Iíll be doing and where Iíll be
entering my trades and where Iíll be placing my stops and where Iíll be
exiting my trades all before the markets open. When I do enter trades I also
share with BBTT traders my fills and positions.
What is the reason for picking and choosing the set-ups
rather then trading it mechanically?
Itís only a personal decision since BBTT can be traded mechanically as the
set-up and trade plan is 100% objective.
I was wondering if you have the past performance on an excel spreadsheet ?
Yes. Historical trade results across all the index futures and currency
futures markets are available on request to owners of the book. I donít
make them available to people making enquires about the book. I do this as
it is a pain for me to play around with the results to hide their entry and
exit dates to protect BBTTís trading methodology from people who would like
to reverse engineer it.
How long is the newsletter for $490? Also what type of support mentoring do
Itís a quarterly subscription and you have to remember itís only a
newsletter to support the trading theory contained in BBTT. Itís not a
mentorship program although I do run one with my Workshops. However, having
said that, Iím always available for chats with people about trading,
particularly subscribers of mine and owners of BBTT and my models. I always
answer my phone!
Do you know any CFD brokers who can reduce the $ risk per contract?
I donít trade CFDs as I prefer futures so Iím no expert on them. However Iím
sure traders can reduce the contract size of the CFDs they trade to limit
the potential risk to a manageable proportion of their accounts. However
youíll really need to speak to a CFD provider to get it from the horseís
mouth so to speak.
I guess there is no escaping the fact that a larger drawdown then
historically will always occur. I was looking at IndexTraderís long term
equity curve and looks quite solid. I understand that in early 2007 you
experienced a pro-longed drawdown (maybe due to the drop in volatility) and
hence BBTT was born. My question is what market style or period do you think
BBTT will have trouble in? or are you quite confident it is quite superior.
BBTT being a trend following system will struggle during consolidation and
range bound markets.
SpiTrader, IndexTrader and IndexALERT will struggle during prolonged periods
of strong up trends as up trending markets are usually associated with
We know markets exhibit both trending and counter trend behaviour.
The trick is to have a diversified trading approach that comprises both
trend trading and counter trend (swing) trading.
Now if we could know with certainty when a particular market will commence
trending strongly we would only have to trade BBTT. If we knew when a market
was about to go into a 3 month period of consolidation and choppiness then
we would only trade the short-term swing models. Unfortunately I donít know
how to determine what a market is about to do (geez I donít know what my 3
year son is going to do in the next second!) so I prefer to trade both my
trend and swing trading systems simultaneously when set-ups occur. I hope
this makes sense.
I am sure that in the past years there has been many periods of
consolidation / range bound markets etc ... but it seems for BBTTís equity
curve it is still very strong with no real apparent drawdown (compared to
that suffered by SpiTrader or IndexTrader) ... is this maybe due to the
diversification across many markets ? (then again IndexTrader is also
Where BBTT does gain an edget over SpiTrader and IndexTrader is that is
does trade the currency futures in addition to the index futures. So its
portfolio of markets is more diversified then the index trading models.
I finished reading Trading the SPI a little while ago, and I liked your book
very much. I've been trading SPI CFD's for a few months now with excellent
results using my own very simple system, but am always looking for more.
Just wanted to know a bit more about the red BBTT book as I've not spent
over $500 for one book before. I've spent well over that educating myself so
far, but am always curious as to what I'm getting.
There is really very little I can add to what you can read on my web site.
At the end of the day traders want to trade with a methodology that has an
edge and that is what BBTT has, an edge. So the biggest value in the book is
learning my BBTT trading methodology (and that is why the book is priced at
AUD670). However before you consider the book you have to ask yourself
whether you can be a successful medium-term trend trader where you can only
expect to win a third of your trades since markets rarely trend. If you
believe that you can be a good loser, losing 67% of the time to catch the
big 33% winners, then you will not be disappointed by BBTT. Itís a simple,
clean and robust methodology that has an edge.
Buy it now PayPal