An unfair advantage for independent traders

The future of trading is futures — a market that is so large, so deep, and so active that it is virtually impossible for any fund manager or government to manipulate it successfully.

For too long, though, the futures market has been the exclusive domain of the very wealthy. It has been difficult for individuals to penetrate in large part because its inner workings have been kept deliberately opaque by insiders.

Individuals who have attempted to pierce the veil have discovered that they have piled up losses quickly because they brought their old equity market habits — mostly naïve trend-following — to the game. This is like bringing a knife to a gunfight.

GEMINI 252 is different. It is a system based on genetic algorithms that analyze current market conditions and adapt to them. No rules are set in stone; the system organically improves itself every single day.

My career-long goal l has been to bring the best investment and trading techniques of the pros to the public at the lowest possible price. I have known the developer of the GEMINI 252  system for years and observed his success firsthand. I have always wanted to encourage him to introduce an institutional-quality system like this for the everyday investor and allow me to offer it to qualified, serious individuals.

That day came on March 30, 2011. GEMINI products are engineered by a proprietary research and development firm, and licensed for sale by Markman Capital Insight LLC.

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REAL INTELLIGENCE

GEMINI — short for “genetic market intelligence” — automatically evolves so that it generates the appropriate signal for a given condition in a very nuanced way. It is sort of like the touch needed to make a shot in basketball while moving at high speed. It’s a very delicate balance that has to be constantly adjusted.

Why is this necessary?

Market participants’ emotions create price velocity and movement. So any given price represents the balance between optimists’ and pessimists’ point of view. GEMINI is built to get under the surface of those emotions and determine where they are likely to find their next equilibrium.

The two-dimensional rendering of prices that you see on the surface of a stock chart is the result of a  swirling soup of emotions that happens underneath the market, in traders’ minds, and our goal is to understand and map the path to the next big step.

Sound complicated? The science of our technique is. But the signal it generates is incredibly simple and clear.

Many veteran traders are great at coming up with the idea for great systems. But most are lousy at implementing them. That’s because traders they are hampered by prejudice, emotion, and fatigue.

GEMINI represents a new approach. One that is never plagued with doubt or elation. It is based on a very systematic, disciplined approach that I have never witnessed anywhere else.

It is computer-driven, but don’t take that to mean that it’s sterile or robotic. The ideas behind the approach came from human ingenuity. The genius part is that the computer technology helps the developer make sure those ideas are applied systematically instead of emotionally.

GEMINI never tires and never remembers, for instance, whether its last signal worked extremely well or failed altogether. So it is never overly excited or biased by recent news events to the extent that it make mistakes provoked by elation or despair.

It combines computer science, mathematics, statistics, physics, and behavioral science to develop a program that seeks the pockets of predictability embedded in a mostly chaotic market.

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THE GEMINI ADVANTAGE: WHAT, NOT WHY

Using a systematic approach eliminates a lot of the mistakes that we make due to internal biases that we cannot shake no matter how much we try.

Individuals are hampered by a need to understand and rationalize financial events. Computer software is not. By the time unknown variables become self-evident to everyone, the move has already occurred and is complete.

So a system is not concerned about the whole debate about price and value. Value is just a ghost story based on subjective analysis. Price action is absolute, measurable, and can be objectively analyzed – always the result of the battle of supply and demand.

A good system is not interested in a news event – only the market’s reaction to the news event.

THE FUTURES MARKET. IT’S BIG.

To execute the GEMINI plan, we use the futures market.

Futures contracts are derivatives based on major indexes, securities, or commodities. They were originally created to help farmers hedge against the future price of their crops.

If you are a corn farmer and want to lock in a certain price for your crop that will yield you a decent profit, the futures market lets you do so. On the other side is a speculator who thinks that the price is going to be different than you think it will be at that future time.

Both can get what they want out of the relationship: The farmer gets his guaranteed profit but gives up any upside. The speculator will earn the upside, but may lose a lot if the price doesn’t go where he expects.

For non-farmers, futures markets are a very liquid place to make speculative bets. The S&P 500 and bond futures contracts trade around the clock, so there are never any gaps. If our idea is to take advantage of insights into crowd behavior, we want to speculate in the largest possible crowd – and those are the ones trading S&P 500 e-mini and bond futures.

You can take advantage of major market moves in either direction… the leverage potential is tremendous … and best of all, you don’t have to study 500 individual positions.

We only have two: Stock futures and bond futures.

That is another reason we chose the name GEMINI for our program. You can capture every possible emotion in the market with these very similar but distinctly different “twins” – two incredibly liquid, easy-to-trade investment instruments.

It’s only the idea behind our trades that is complex. The execution is incredibly straightforward. This adheres to our main philosophy in life and in the markets: Keep it simple.

S&P 500 e-minis were introduced in 1997 and closely track the value of the benchmark index. Each point is one-fifth the size of a standard S&P 500 futures contract, which puts it on the same scale as the index itself. The contracts trade in quarter-point increments that are each worth $12.50 per increment, called a ”tick.” One full point is worth $50, which is just $12.50 times four.

More than $60 billion in e-minis are traded per day. That makes them the market’s most actively traded equity futures contract. This market is so big that it cannot be manipulated like individual stocks. It gives us a very pure and fair field in which to exercise and profit from our ideas.

TRADE INTELLIGENTLY.
NOT JUST ACTIVELY.

GEMINI will change your view of trading and of the futures market.

Most people think of a crowd of traders waving their hands and barking orders every few seconds, or of a day-trader making dozens of transactions a day.

Our approach is quite different. GEMINI will send you a signal every day, but on average you will only trade around five to ten times a month.

Why so few trades? GEMINI is not a linear system that just looks for past patterns to repeat themselves. It quietly analyzes current market dynamics and bides its time, waiting for the ideal entry and the ideal exit.

Its point of view on these subjects is totally different than anything you have seen before, so don’t try to deduce its intention or second-guess its pace. It may decide to lay low in what you perceive to be an exciting, fast-paced up market – and it may become very active in what you perceive to be a slow, dull market.

That is, at times when the S&P 500 is rising 1% a week, GEMINI might nonchalantly stand aside.

In contrast, at times when equities appear to be shuffling sideways aimlessly, GEMINI may elect to get very busy – observing patterns that are impossible to discern with the naked eye and normal trading mentality.

Left to our own devices, you see, we humans will virtually always do the wrong thing in the markets.

We suffer from what behavioral economists call an “activity bias.” We see the market moving rapidly and feel like we can’t just stand there – we must do something.

GEMINI does not feel that bias. If it cannot discern an optimal entry point that will help assure a successful trade, it will stand aside. She might tell you stand aside during a 5% to 8% up move in equities, and you should just smile and say, okay, it’s not my time.

Because when the market is flat later on, you will stand a chance of making much more than that while everyone else is being constantly stopped out and frustrated.

GEMINI aims to put the odds on your side.

Indeed, the goal of GEMINI is to identify optimal trading days during the month, establish a high-probability entry point, and enter. The system always has an exit price in mind and always starts with a one-quarter to one-third sized position. Sometimes that first position is all that will be traded, and sometimes you will have the opportunity to make three or four separate, consecutive recommendations.

GEMINI entry and exit points are determined by the developer’s proprietary, non-linear modeling and its dynamic special measures of volatility. Historically, and in 2011, the system has exited 89% of all trade sequences profitably, though future results may vary and there is no guarantee this record will continue.

From January 2011 through September 2011, when GEMINI was both in live beta and live to the world, 20 of 22 trading sequences concluded with total profits of more than $17,000 in an account starting with $22,500. (Past results may not be indicative of future profits. All accounts may not achieve comparable results.)

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TREND AND COUNTER-TREND:
TOGETHER FOR THE FIRST TIME
.

GEMINI employs both trend and counter-trend principles in its logic.

That might sound counterintuitive… but it is what makes the system able to adapt to changes in volatility and market direction.

You see, most systematic traders are really just trend followers. They look for volatility breakouts using a variety of techniques and take a lot of stop losses along the way. This method depends on a lot of what scientists call “serial correlation” — or the belief that what happened yesterday will happen today and tomorrow, too.

But markets only trend about one-third of the time; the rest of the time they are consolidating. So trend followers tend to get swallowed up with negative returns for a long time. You need to trade 10 to 15 markets at a time for trend-following to work.

Now most people think that the whole goal is simply to generate alpha, or above-market, returns. But the real trick is to provide the smoothest alpha with the least amount of volatility.

GEMINI works in a very risky market but games the system to take the least risk possible.

How can that be?

Again, the system leverages genetic algorithms to quantify market behavior and determine where inflection points are in trend or counter-trend cycles. GEMINI aims to exploit a certain mathematical order that it sees in what appears – to others – to be randomness.

The bottom line is that GEMINI always wants to be counter-trend at the start of a trade, but then it wants to be a trend-follower once it begins.

Here’s one way to think about this …

Imagine throwing a ball straight up into the air. It slows as it reaches its apex, then reverses and picks up speed again as it plummets back to earth.

Likewise, you want to start a trade as it hits stall speed at the end of a rush in one direction. That’s the counter-trend entry. But then will make your money as the trend then reverses and picks up speed again in the opposite direction. That’s trend-following. So we enter as a contrarian and aim to exit as a leader.

These kinds of entries are much harder to identify than simple trend-following entries. But they provide the most optimum trading opportunities.

Now keep in mind that at the point that ball hits the peak of its trajectory and changes direction, it stops moving for just a split second. And yet everything is in place for it to descend rapidly.

This is like the fact that the price of a security is often the very last observable phenomenon to change – and the coming change is what we try to anticipate through principles of math, physics, and behavioral finance.

TAKE ADVANTAGE OF
OTHER PEOPLE’S MISTAKES

Futures trading is where the big boys play now. And this is the first time that a very sophisticated system has been put into a format that any individual trader can use.

To protect the integrity of the system, each subscriber must attest that GEMINI signals are for their personal use and will not be used in any professional capacity for others.

GEMINI is simple. It takes minutes per day on your own terms at your own home or office, and you won’t be chained to a computer.

GEMINI is not about day trading. You are not going to have to remain hunched over your terminal all day.

We will send you an E-mail in the afternoon that gives you specific instructions on what stock index or bond index futures contract to buy or short at the market close.

You can set that trade on your computer and it will be set to trip seconds before the end of the session. Later in the afternoon, we will send instructions on exactly what price to sell or cover that position, as well as whether you should buy more of it at the next close.

Trades are typically made only at market close, while targets are good til cancelled — so this is one of the most boring ways to trade the world’s most exciting  markets.

GEMINI is divorced from Wall Street hype and manipulation. No brokerage recommendations or double-dealing from people who are only out to feather their nests.

There is very little to learn, except how to enter the trades, and nothing to interpret. You just follow my instructions. All you need is a computer, a futures trading account, and a modest trading stake of at least $22,500.

And if you do not want to trade the system yourself, we can recommend four brokerages that can provide you with “auto-trading” or “broker-assisted” accounts, a surprisingly economical approach that eliminates the learning curve. But don't kid yourself: There is a great deal of risk involved, or there would not be the potential for profit. Do not trade with money you cannot realistically afford to lose.

GEMINI allows you to take advantage of volatility like never before. You will see volatility no longer as your enemy, but as your friend and partner.

Past performance is no guarantee of future success. The potential for serious losses always exists. But our goal is to take advantage of other peoples’ mistakes… and since other people make a lot of mistakes, there is a lot of opportunity to profit. Review risks here.

Get started now by becoming a member of Markman Capital Insight with a free registration, and then signing up for a subscription.

Click here to register, then click here to subscribe.  

Questions? Email us at mci@markmancapital.com. 


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RISKS

Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Do not trade with money you cannot afford to lose.

GEMINI 252 is neither a solicitation nor an offer to buy or sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT 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 PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL.

ANY SIGNAL GENERATED BY GEMINI VF1 IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY. ANY TRADES PLACED UPON RELIANCE ON Gemini 252 SYSTEMS ARE TAKEN AT YOUR OWN RISK FOR YOUR OWN ACCOUNT. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. WHILE THERE IS GREAT POTENTIAL FOR REWARD TRADING COMMODITY FUTURES, THERE IS ALSO SUBSTANTIAL RISK OF LOSS IN ALL TRADING. YOU MUST DECIDE YOUR OWN SUITABILITY TO TRADE OR NOT. FUTURES RESULTS CAN NEVER BE GUARANTEED. THIS IS NOT AN OFFER TO BUY OR SELL FUTURES OR COMMODITY INTERESTS.