In this country, as well as all others I'm sure, it's always the little guy getting screwed. The truth is that those with power and money buy influence and create rules and regulations that benefit them, but the little guy either doesn't know, or can't take advantage because they don't have the resources. For example the ex-Governor of NJ can be head of a commodity FCM that literally "misplaced" (i.e. stole) $1b + in customer funds and he walks away scot-free. But how many little guys were prosecuted to the fullest extent of the law for stealing a 1k dollar hand bag? I wont continue on this path, because it will turn into one of my rants, and we are here to talk business.
One area that the little guy can take advantage of the rules that the big guys have set up is through the tax code. Trading is a business, period. It must be treated as such and taxed as such. Expenses such as Computer Equipment, Data Feeds & Technology (ahem..ahem.. Alchymist Platform ), phone, internet, Car, Meals, Required Travel, Seminars, research, and more, are all part of your business expense and should be deducted against income. You should be able to set aside medical and retirement costs that all are pre-tax expense. If you work at any big company, this is exactly what you will see. So why should they get all those benefits but you don't? When they fly to Europe, you think they are in coach eating airline lasagna? Or is it first class, steak, and some top shelf whiskey? - you guessed correct, and it's all deducted on their Corporate taxes.
Well you should get these same benefits, and it's up to you to do the research and go get them. Many businesses operate on margins of a few percent. Proper legal structure and tax preparation can be the difference between a break-even or slightly up year, vs a losing year. Please read the below article which discusses this in much more detail. Then consult a tax professional once you are ready to start the business of trading.
The Alchymist Platform has been many years in the making. During my trading experiences I would try different platforms, different data providers,different research tools, different advisory services, and pretty much without fail, there would be some sort of fatal design flaw or execution flaw, that led me to discard that service and try a new one. In many instances I couldn't find what I was looking for, so I would have to build it myself.
We set out to combine multiple tools and data studies in one platform that would not only give us a edge over our competition, but it would be a tremendous time saver. Each evening all data and analytics are updated - Users simply log in and an encyclopedia of data is at your finger tips. It's there for research, for study, for development. Most importantly, this data is easily accessible via a user friendly cloud based interface, so traders can focus on research and studies, not on collating data and producing reports.
I want to take you through the biggest issues I had with the products being offered out there and tell you why we are different.
1) One data provider simply wouldn't have consistency with the data, and analytics being available each night. I had built out programs and simply needed the data files from this provider to import into my templates. But randomly, either once a week, or sometimes even twice, no data loads. When you are trading as a business, this simply is not acceptable. So in the Alchymist application we found a reliable data provider, that sources the data directly from the exchanges, and not only delivers the data like a clock, but they have multiple layers of data checks to ensure the data is as clean as possible. We then layered on another set of control checks on our end. When you use our tools and research you know it is as accurate and up to date as possible, because we are using it ourselves each day. Any hic-up and we are all over it to get it resolved asap.
2) Charting Provided by most Brokers and all free websites utilize a Futures chaining methodology called "Last True". To summarize, it distorts all of the historical data by backward adjusting the entire data series when creating a "Continuous" Line. Remember, Futures contracts are specific to months and years, so there must be a chaining methodology to "glue" them together onto your chart.
If you go to FINVIZ for example and pull up a monthly commodity chart of Soybeans - According to the data set, back in 2000, Beans traded at Negative 200! - I can ensure you this was not the case - it is simply a function of the methodology of connecting these contracts together.
Point being here that as a market student, this is absolutely useless information - Why even display it?
In our database we have multiple chaining methodologies and our Historical chaining methodology eliminates this undesired output so that you can see more of a accurate picture of what really occurred at that time.
3) Most Charting applications wont display the full data set. So if you call a "Daily" Chart of Beans, it will show you 9-15months of daily prices. In our charts you can enter any custom time frame and view daily plots. This is critical for those wanting to study price history and how prices behaved during certain periods (drought, frost, holiday, whatever you decide you want to investigate) - The data is there, and the tools are there. Look back capability is critically important. You need to study and do your own research, and you need a tool that will enable you to do that. Alchymist fits that bill.
4) Data Analytics - All of these black box apps and platforms don't perform any original analysis - They all use the same inputs like "50 Day Moving Average" - The problem here is that all the algo traders program this into their code, so they know where all the retail dummies that use the legacy tools are sitting. You need a different way of thinking, so you are less likely to be spotted and taken out. In our platform you will see Original tools and indicators that aren't used by other traders. In your studies and Demo trading you will see that they work and provide you a necessary edge.
We believe, and you will see, that we have built a all encompassing Research and Data Analytics Portal for trading futures. We've corrected many of the flaws that other providers have, and most importantly we are priced significantly below our competitors.
Simply investigate the cost of sourcing decades of raw daily data. If you go to the CME you will see that to source data on 1 Future can cost thousands of dollars, and this doesn't include daily updates. Go to quality third party data providers and it will cost you $500 per month minimum, and upwards to a thousand per month - This is without any tools or analytics! The low quality providers (whose names we wont mention) will cost you $100 per month, and this with data that is approx 65% clean.
Now compare that what we will be charging. Our monthly cost is either $100 or $167 for Tier2, and we are certain you will see the value of our offering. By getting your win/loss ratio to 50%, and then betting with Risk/Reward of 2-1, you will pay for the leasing rate many times over.
At 3ptCapital we are always considering Risk vs Reward and we have tried to put ourselves in your position to ensure you have a great Reward vs Risk profile for leasing our platform. We want you to be a long term client and we can only do that by offering great value at minimal cost. Our platform is priced the same as a monthly gym membership or cell phone bill, yet you are getting an institutional grade platform. We take great pride in our platform and we know it will make you a better trader.
In conclusion we'd like to highlight that any formal education means absolutely nothing to us, or your prospects of succeeding as a trader. If you are a hard worker, competitive, like to play games, and can follow a playbook, then you have a great shot at succeeding in the trading game.
The key to your success will lie in your discovery that you win by not betting in a emotional or reckless manner. This is why most Traders and gamblers lose money. It's because they are not playing the game to make money - They are playing for the rush, for the chance to hit it big -but that is a sure way to failure. Instead learn to be a pro - Use the Alchymist Data Analytics to ensure you are placing high probability bets; and then focus your energy on Risk Management.
If you want to make a lot of money in this game, develop a steady, consistent track record, and then find ways to raise capital so you can continue the same winning techniques at a higher stakes table. Don't come plopping it all down on the pass-line hoping to double and triple your stack right away.
You win in this game by betting only when odds are in your favor, however betting in size like they are not!