The CoolTrade Report How to Turn Your Personal Computer Into a Fully Automated Robotic Money Machine

Written by Brad Wajnman, Co-founder, M4 Research

Edition 1.1

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Introduction If youve seen Hollywood blockbusters like The Matrix, The Terminator, I Robot, Minority Report or even 2001: A Space Odyssey, you know that a lot of yesterdays science fiction eventually finds a way into our present-day reality. The rise of the machines isnt coming its already here. And given the recent proliferation and sophistication of computer-based stock trading systems, the stakes are continuing to get higher for Main Street investors who want to play in whats often referred to as a rigged game.

Many argue that the stock market isnt rigged for long-term investors, but what about short-term speculators and day traders?

Hmmm, well lets see

Special price feeds for brokers and institutions (15-minute reporting delay for the rest of us).

Banks, large institutional investment firms and other insiders have direct access to the market and pay nothing for trades (you and I pay broker commissions).

They own and operate multi-million dollar systems that run the market (we have MSN, Google and Yahoo finance).

Like it or not, the Wall Street elite have an undisputable edge over smalltime investors. What used to be a lucrative sandbox that individuals could play in is now mostly the domain of institutional trading firms. Fortunately for us, theres a completely hands-off way to beat them at their own game even if you know nothing about the stock market.

In fact, it can be done with nothing more than a home computer, an internet connection, and an under-discovered piece of software that (everyday or average) investors like you and I have been using successfully since 2005 investors just like you and me.

But before I give you the full scoop on how this one-of-a-kind system works and what it can do to grow your portfolio on autopilot, I want to first put things in the proper perspective by examining how significant of a role technology is playing in todays U.S. stock market. You see, unbeknownst to most people, more than 70% of all buying and selling of stocks is now being carried out, not by humans, but by high-powered super computers.

It wasnt that long ago that the stock market was strictly the domain of humans. I still envision a loud, crowded trading floor; like a scene out of Wall Street where guys are knee-deep in paper, writing down all the orders by hand. However, in 1998, the SEC authorized the first electronic exchanges, and for the first time in history, computer-based trading entered the market as equals to humans. Often referred to as algo-trading, robo-trading, black box trading, and more recently, high-frequency trading (or HFT for short), these automated trading systems utilize complex mathematical formulas called algorithms to execute trade orders based on current market conditions and statistical analysis of past performance.

Famous man-against-computer chess matches have proven that its very difficult to compete against a computer thats artificially intelligent (i.e. it learns from its mistakes), and is trading non-stop all day long. Instead of buying and holding stocks and hoping they go up over a long period of time, the latest breed of HFT systems focus on skimming and scalping tiny profits off the table as many times as possible, all entirely without any human interaction. On an episode of 60 Minutes, Manoj Narang, the CEO of Tradeworx, a high-frequency trading firm, said, Humans are not involved in the trading because humans are way too slow to trade on the kinds of opportunities that were trying to capture. Were trying to capture opportunities that exist for only fractions of a second. Talented mathematicians and software engineers are often secretly recruited by prop (proprietary) trading desks, hedge funds, and large institutional investment houses and banks (think Goldman Sachs, Merrill Lynch, etc.) to design these robotic trading programs. There are currently over 2,000 physicists working for these big Wall Street firms, all of which who have one goal in mind capture the best profit opportunities by being smarter and faster than the closest competitor. Citigroup is one of the biggest players in the algo-trading world. In 2007, it bought the Rutgers University spin-out firm Automated Trading Desk (ADT) for a cool $700 million. Although ATD only employed about 100 people at the time, it still managed to trade a whopping 6% of the total U.S. equity trading volume, which was estimated to be in the neighborhood of 200 million shares per day.

In Olympic track and field events a tenth of a second can mean the difference between taking home a gold or silver medal. But on Wall Street, mere microseconds separate the winners from the losers as algorithms instantly scan thousands of ticks, quotes, and other real-time raw data to find and initiate buy and sell opportunities. To get a sense of what microseconds are, it will take you 500,000 microseconds to click a mouse. It takes a chess grandmaster approximately 650 milliseconds just to realize theyre in trouble (i.e. their king is in checkmate). Above all else, HFT algorithms are dependent on processing information at very high speeds and can end up being losers even if theyre just five microseconds behind. So in order to gain an exploitable edge in this constant game of cat and mouse, many HFT firms strategically position the physical location of their computers in close proximity to the New York Stock Exchanges main server hub (or, the CME for commodities traders). The stock market had been turned into a Wild West of dueling algorithms where these firms spend tens of thousands of dollars per month for lightning fast data feeds to essentially front-run other investors. Heres a great illustration showing exactly how this scenario takes place on a daily basis:

Thing is, the big HFT firms may only earn $0.001 on each trade, but they can generate millions in profits due to the extremely high volume theyre capable of turning over at blinding speed. Some firms are trading over a billion shares a day, however many of the buy and sell orders that are sent by HFT machines are never filled. Instead, theyre simply used to feel out where buying and selling pressure might be. Granted, high-frequency traders are getting the same information the average trader and investor is getting, but just a little bit sooner. It may only be a few fractions of a second sooner (depending on your access level), but for all intents and purposes, a super computer can anticipate the price of a stock before you or I can. The fastest computers get the best deals every time. And although high-frequency trading systems are technically legal, those without this capability say that they constitute an unfair advantage. High-Frequency Trading Snafus Have you ever installed a brand new operating system on your PC or mac that hasnt been out longer than 6 months? If so, you know that computer technology is far from perfect, and at times it can be downright buggy. The truth is, HFT systems arent immune from unexpected errors and glitches happening either. An algorithm is like a recipe where a repeatable set of instructions are pre-programmed to automatically perform some task. An algorithm will always produce the same results when its given the same conditions and inputs. But no algorithm can cope with every potential unexpected input or event, which is why unintended consequences that the designers never anticipated, and that no human can control, are inevitable. Take, for example, the infamous Flash Crash of May 6, 2010 that sparked one of the scariest rides in stock market history. On that day, the Dow Jones Industrial Average plunged almost 1,000 points for no apparent reason. At its low, the Dow was down 9.2% from the open, briefly erasing $1 trillion in market value before quickly regaining much of the lost ground by the close of the market. As this chart shows, it was the biggest single-day drop on record:

Turns out, the decline was triggered when a large institutional fund manager dumped over $4 billion dollars worth of futures contracts (called E-Minis) on the market in a very short period of time. In just six minutes, high-frequency traders gobbled up the massive number of contracts the institution was selling and quickly accumulated the sellers inventory. Then like a game of hot potato, they dumped it just as quickly as they bought it, which created a domino effect that, in turn, automatically caused other high-frequency traders to sell off in quick succession, eventually leading to a liquidity vacuum. Another so-called anomaly took place in August, 2012. Knight Capital Group, a broker and provider of electronic execution services, lost $440 million in 45 minutes when its new trading software malfunctioned shortly after the market opened.

The firm barely escaped extinction thanks to a capital infusion from a handful of financial outfits that now control the company, but what most investors dont know is that less spectacular, smaller scale hiccups like these happen all the time.

In early 2012 a study was published entitled Financial Black Swans Driven by Ultrafast Machine Ecology. The studys authors analyzed HFT and found 18,520 inexplicable events from 2006 to 2011 that had unusually wide, but ultra-brief (650 - 950 millisecond) stock price swings.

They call those events financial black swans, but theyre so common these days (more than one per trading day, on average) that the black swan label doesnt really fit anymore.

HFTs Impact on Individual Investors If you look at major indexes like the DOW over the last 10 years from a macro perspective, youll find that other than the big dip in 2008, there really hasnt been a substantial change in overall long-term price moments. However, if you look at recent daily, weekly or monthly price movements, its not hard to see just how influential the effects of high-speed electronic routing and execution have been in terms of increased market volatility. Stock movements caused by a reaction to news or technical events that might have taken minutes, hours or even days to play out before, now happen so quickly that manual human trading has become a very challenging way to make a living.

Suffice to say, high-frequency trading is so wide spread these days that its fundamentally changed how our capital markets operate. The banks, institutional investors and other insiders definitely have many competitive advantages over us in the market. The most obvious edge is their access to huge amounts of capital, which allows them to take smaller percentages of stock gains and generate big profits from them. Simply put, if youre investing $10,000 in a stock and theyre investing $10 billion, a 10% gain in the stock would give you a $1,000 profit, whereas it would give them a $1 billion profit. In addition, their algorithms are connected to expensive third-party technology which costs tens of thousands of dollars a month and gives them the ability to view privileged information that you and I arent privy to. More specifically, they can see what percentage of retail investors are moving into a particular stock and can gauge the sentiment or popularity of that stock based on the amount of shares being purchased, and then act accordingly. Their systems can quickly sniff out which way the market is moving in order to jump in ahead of big rallies and sell off before big declines. Again, this is because they can see order flow coming into the exchanges before the average retail trader or investor can. Their algorithms can also be programmed to capture and analyze data from Google searches, such as how often a stock or commodity is being researched.

At a time when distrust of the financial markets is near an all-time high due to the failure of MF Global and Peregrine Financial, and Flash Crash-type debacles, its easy to understand why a lot of investors have given up on Wall Street.

Theyve walked away feeling disenchanted and cynical of a system that was designed for us to put our money into.

We all deserve to be protected from abuse, but the fact of the matter is, stock market manipulation is nothing new. It occurs on many different levels, including high-frequency trading. Heck, even the exchanges themselves have been fined for favoring high-frequency traders over other market participants. On September 14, 2012, the NYSE and its parent NYSE Euronext agreed to settle with the SEC and pay a $5 million penalty. The NYSE got their hand slapped because they provided certain HFT firms with unfair access to price quotes ahead of the consolidated feed that the rest of the investing public relies on. This was happening at the exchange level, which is very different than the legal, albeit covert HFT front-running example we discussed earlier. With all that being said, theres nothing intrinsically bad about high-frequency trading in and of itself. However, according to industry statistics, the cost of in-house solutions for competitive data feeds is somewhere in the order of $260,000 per month, not to mention a start-up cost of $270,000 per data center.

Of course, HFT can be extremely profitable for those who have the financial resources to capitalize on it. Its just obviously cost-prohibitive for the little guy, which begs the question...

How do you compete with high-frequency traders with billions of dollars that are executing millions of split-second transactions? The short answer is, you cant compete with HFT but you dont have to. Lets face it, HFT computers are opening and closing orders in mere milliseconds. I cant do that and neither can you. Frankly, HFT firms are highly sophisticated gamblers that have the ability to make extremely calculated trading decisions. So unless youre trying to buy and sell shares in matter of seconds (which is a fools game), quick movements in the market are just a bunch of trading noise for the everyday investor.

The good news is you dont need to be able to get in and out of trades in the blink of an eye in order to make great short-term gains from the stock market. You also wont have to sit at your computer staring at charts for hours on end, or wait for some software with green and red arrows tell you when to make a buy or sell decision and then manually have to login to your broker and place the order yourself. Because the alternative solution Im going to tell you about arms you with the computing power and many of the features youll find in HFT systems without the significant barriers to entry. Introducing The CoolTrade Advantage

CoolTrade is the only true robotic trader available. - Chris Throop, Senior Vice-President of Merrill Lynch The internet is full of vendors who market useless, hype-infested stock trading software to unsuspecting people. Many of these unscrupulous vendors will try to convince you that their systems are automated. Yet, once you get past all the smoke and mirrors, you quickly find out they really arent. Even worse, some are actually outright scams. Ive reviewed dozens of stock trading tools that are great for identifying trade set ups and tracking stock transactions, but CoolTrade is the only fully automated stock trading software available to the general public Ive ever come across that does everything for you (and I mean everything) on complete autopilot. Once installed, it turns itself on in the morning, picks the stocks, executes the trades, and then turns itself off after the market closes, all without any human intervention whatsoever. So you can go about your day as usual while the software does its thing.

Unlike high-frequency traders, CoolTrade isnt some secretive black box system where you dont know the trade rules all the rules are clearly defined and easily accessible.

The system also doesnt fight over pennies or attempt to trade millions of shares at a time, but instead, watches hundreds of indicators and automatically makes buy and sell decisions on your behalf.

Background History

Headquartered in Scottsdale, Arizona, CoolTrade, Inc. was founded in 2004 by former Microsoft software design engineer, Ed Barsano.

In addition to being the creative genius behind CoolTrade, Ed also runs two private hedge funds that use the same publicly available version of the CoolTrade software to trade his clients funds with.

Ed grew up in the inner city of Chicago and joined the navy at the age of 17, where he was assigned to data processing. His superiors quickly realized that Ed wasnt just a typical navy recruit; he was highly gifted, so they put him in programming.

After he got out of the navy (while still working for the government), Microsoft called the government and asked for a short list of 5 people that they could recommend who had specialized experience with a certain type of computer programming.

Long story short, he joined Microsoft in 1987 as an elite programmer and was quickly promoted to a high level of management overseeing multiple departments. He did very well for himself and his family, making millions before retiring from Microsoft in 1995.

Many of the best inventions are born out of tragedy and the CoolTrade system is no exception. Yet the way it came about was totally unexpected.

It all goes back to the year 2000. Ed had a stock portfolio worth roughly $22 million at the time. Like most people he listened to his broker for advice on what to buy and what to sell.

Then the dot com tech bubble crash of 2000 happened and Ed ended up losing HALF of his wealth. No, he didnt go broke but when someone takes a $12 - $13 million hit in a matter of months, its the type of thing thats going to wake you up and demand your attention. Determined to get it back and help his friends and small investors do the same, Ed decided to roll up his sleeves and do something about it in the best way he knew how. Using his technical expertise and analysis of stock market trends, he vowed to level the playing field for individual investors by creating the first automated trading robot capable of doing intra-day trading (i.e. day trading) in the stock market, 100% hands-free. Industry experts said it couldnt be done, saying that it was too complicated with too many moving parts. But after $10 million in development costs and 5 years of testing, Ed released the first version of CoolTrade and never looked back.

The company currently has over 14,000 satisfied clients from over 40 countries using the software, which is available in 6 languages.

I was first introduced to the software in October of 2012, and after seeing some of the bold claims being made, I was pretty skeptical to say the least. Like I said, Ive reviewed a lot of stock trading tools over the years (most of which are garbage), so I wondered why CoolTrade hadnt shown up on my radar before.

But after researching the facts and speaking to Cary Flanders, the companys CEO and Co-founder, I found out that for the first several years CoolTrade was primarily marketed through trade shows here and there and straight word of mouth.

TD Ameritrade was one of the first brokers to get ahold of it. They were trying to do the same thing, but when they realized that Ed was about 7 years ahead of their development team, they wanted to buy it from him, and of course, take complete control of it for themselves and their customers.

Ed declined the offer and told them he wasnt interested in selling, but worked out a deal where if youre a subscriber of the CoolTrade software, TD Ameritrade allows the software to directly connect to your live account and have it traded on its own. They trust the software enough so that every one of their customers can use it to trade their portfolio. Now once TD Ameritrade was on board, multiple brokers took notice and started calling Ed, expressing interest. More endorsements soon followed and today CoolTrade is integrated with several other mainstream brokers, including E*Trade, Interactive Brokers, MB Trading, OptionsHouse, Options Express, TradeKing and FXCM. Just to be clear, these are CoolTrades broker partners (not competition) who know that this system works, and therefore, will allow any CoolTrade subscriber to set up an account with them and have the software to trade it on their behalf. Okay, now that weve got the basics out of the way, its time to dive into more details about how the CoolTrade software operates, whats required and what you can expect... CoolTrades Automated Strategies

Let me ask you how happy would you be if you were walking down the street tomorrow and found a $50 bill laying there on the ground right in front of you? Now imagine stumbling across $20s, $50s or even $100 bills on the

ground 5 days a week. Do you think that would put an extra spring in your step? You bet it would. But what does this have to do with CoolTrade? Well, when it comes to the stock market, at any given moment, millions of buy and hold type investors could be up $50, $100, or even $500 on a number of stocks in their portfolio but they dont take it. In most cases, they cant take it because its locked up in some low-yielding mutual fund theyll be lucky to squeeze out 3% net a year from. The key, however, is to always be in the game buying, selling and taking profits. CoolTrade treats the money in the stock market just like money youd find on the street. It doesnt care whats happening in the market because its going to pull money off the table for you every single chance it gets. Buy & Hold vs. CoolTrade Example Check this out. At the time of writing, if you had purchased 100 shares of Netflix stock 5 years ago and simply held onto them, your profit today would be roughly -$601.00. However, if you were a CoolTrade subscriber, the software would have automatically traded this symbol approximately 347 times during the same 5-year period with a total profit of somewhere around $127,494.00 big difference. Let me explain how thats possible

First off, CoolTrade is designed to capture profits using two main trading styles: swing trading and day trading.

Each one is a valid method of trading stocks with longstanding histories. There are as many approaches to each style as there are traders, but other than that, those are about the only similarities they have in common with each other.

For the uninitiated, day trading typically involves making trades with very short-term gains in mind. One of the most defining characteristics of a day trading strategy is that all positions are closed out by the end of the day.

Day traders dont like the thought of holding stocks overnight because positive or negative news can often cause the market to experience large point swings the following trading day (and, sometimes even overnight). So to prevent themselves from getting into a pickle, traders running these types of strategies will close out all positions (regardless of whether theyre winners or losers) before the close of the market each day. Day trading strategies have a general tendency to break down over time though, which means that theyll require either some minor tweaking or major revamping in order to get them to work properly again. Its best that theyre checked up on a fairly regular basis to ensure that day trading strategies are performing at their optimum levels. Swing trading, on the other hand, takes a much different approach by focusing on the cyclical nature of the market. Trades are usually held for anywhere from one day to several weeks. CoolTrade utilizes a type of algorithmic trading called mean reversion the belief that stock prices tend to fluctuate within a certain range. This is especially ideal for swing trading because it allows you to profit whether the market is moving up, moving down, or moving sideways.

Not only that, but when positions are on the losing side, you can add more to those positions, giving you an opportunity to profit even more when a correction occurs.

Swing trading is definitely a more medium to long-term oriented trading style that the majority of investors are typically most comfortable with. Regardless of the trading style you prefer, CoolTrade gives you the option of running long strategies, which means you can profit from stocks as they go up, or short strategies, which means you can profit from market corrections in stocks that are in a downward trend. Shorting the market is just as easy as going Long since the software manages the positions and can just as easily take profits no matter which direction the market or your positions are going. The CoolTrade software includes 10 proven off-the-shelf strategies to choose from (5 long and 5 short) some have been running for years. The system also makes it easy to copy over strategies from other users who generously share strategies theyve personally developed.

Theres no fee for any of these and you can either use strategies from those whove been using the system for years (copied as is), modify them any way you like, or completely invent your own from scratch its all point and click. While past performance is never a guarantee of future results, many CoolTrade subscribers have reported averaging 5 - 10% per month using the system. One of the other highlights of CoolTrade is its ability to simulate and forward-test strategies in real time during market hours, enabling you to test drive the system indefinitely before running it on a live account. Below, Ive included a brief description of some of the most popular built-in strategies and others that are available with the system

Dow 30 Strategy

This strategy centers on the 30 companies that comprise the Dow Jones Industrial Average (i.e. Microsoft, General Motors, JP Morgan, Intel, B of A, Pfizer, Merck, etc.). CoolTrade creates a Watch List of these 30 stocks and then uses technical indicators to determine if the stocks are trending up or trending down.

Whats nice about this long-term strategy is that the Dow stocks are always moving, so the system is able to constantly turn over inventory and generate profits nearly every day once a number of positions are open. Two Dollars and Under Strategy This is a long-only strategy (i.e. it only places buy orders) that creates a Watch List of symbols that are between $1 and $2. The system takes profits as these stocks wiggle up and down between a couple bucks and opportunities arise. Ive been told that it was specifically created by a registered investment club to help its members who have limited funds to work with ($10,000 and below) and this strategy seems to be very popular among many CoolTrade subscribers. Exchange-Traded Fund (ETF) Strategies CoolTrade allows you to trade ETFs as well as stocks. Many of the available ETF strategies trade symbols that are typically very volatile throughout the trading day.

These are true day trading strategies that are geared towards investors who are looking for more aggressive returns and love to see a lot of action, but who have a greater risk tolerance and the stomach for wild daily swings. The system uses technical indicators to determine optimal entry positions and will take profits no matter which way prices are moving. All positions are then closed at either the end of the trading day or when the profit goal is reached. IRA and 401(k) Rollover Strategies CoolTrade has a number of proven strategies that are appropriate for trading retirement accounts. There are certain provisions within the U.S. tax code that make it possible to rollover an existing IRA/401(k) into a CoolTrade-allocated account without penalty. In fact, this is what initially attracted me to take a serious look at the software in the first place. Traditional retirement accounts cant short the market, but thats okay because the long-only versions of the Dow 30 strategy, as well as some of the other more conservative strategies have worked well for many CoolTrade subscribers who have been using it to turbocharge their portfolios. By the way, the company has a retirement plan specialist available to assist subscribers in making sure all the proper steps are followed in order to take advantage of this option. Additional Strategies Jim Cramers Action Alerts Plus: Most Americans are familiar with CNBCs host of Mad Money, Jim Cramer; the high-strung former hedge fund manager who darts around the set in a tie with his sleeves rolled way up, pounding on oversized buttons for sound effects. Im not a personal fan of his animated style and spoon-fed stock picks for the masses, but for those who are, hes got an exclusive deal where subscribers to his Action Alerts Plus service can have his alerts auto-traded with CoolTrade. Forex: The vast majority of CoolTrades available strategies focus on trading stocks, but its worth mentioning that it can also be used to auto-trade currencies through FXCM (one of the worlds largest Forex brokers).

Build Your Own: CoolTrade gives experienced traders the freedom and flexibility to create their own strategies from scratch. The system comes pre-loaded with over 500 unique technical indicators to identify how and when you want the software to automatically enter and exit positions. Theres also a manual override in case you want to manually place trades yourself. Stealth Mode One of the first rules of poker is to never show your hand (unless youre obligated to do so). In the stock market, youve already won half the game as soon as you hide your cards. To accomplish that, CoolTrade has a stealth mode feature thats contained within the software. What this means is that your pre-programmed profit targets and market orders that CoolTrade automatically sets up for you are kept hidden from everyone else (including your broker). In other words, youre not floating anything out there in public view (i.e. showing your hands at the poker table). This is a big deal because it protects you against professional traders and institutional HFT computers that are scanning for orders and trying to determine where people are buying and selling. Another huge advantage to not sending this information to your broker is that if the software were to send a market order to the broker, the broker is going to immediately sell as soon as it hits your price goal. But CoolTrade doesnt submit the order to the broker until AFTER it reaches the market order price. This strategy allows a winning trade to keep running higher without closing it out prematurely. Then after it pulls back a few cents or so from its high, the system will automatically close the trade and lock in the profit. Its a powerful feature that puts more dollars in your pocket. Word to the wise: CoolTrade is just a tool. The strategies are the brains that control the tool. Whether youre a beginner or an experienced trader, the best way to become familiar with ANY strategy is to run it in simulation mode first before going live with real funds.

This is the preferred method because it will give you a very realistic view of how your chosen trading strategy performs on a day to day basis without investing a dime. A few weeks to a couple months is usually enough time to get a good idea of how your strategy works in an up-trending, down-trending, or choppy market. Note: the software has its own built-in data feed, so you dont need to open an actual brokerage account until youre ready to go live with real money. The CoolTrade Community Board All CoolTrade subscribers are given access to a private message board where you can communicate with other users of the system.

Not only is this invaluable resource a great place to meet and learn from other like-minded investors, ask questions, or bounce ideas back and forth, but the creator, Ed Barsano himself is very generous with his time and pops in quite a bit to ensure that everyones successful.

Ive spent more than a few hours reading through literally hundreds of posts (including a ton of inspirational stories and testimonials) and what I can tell you is that its a genuine community of investors who are sincere about helping one another.

As I said before, the CoolTrade software comes with 10 built-in strategies you can use right out of the box, but it gets better. Because many members in the CoolTrade community openly share their own successful strategies and results, along with how much initial money they have invested. What this does is give you a much larger database of hundreds of time-tested strategies from which you can discuss and easily copy over into your own system as is or modify as needed.

Minimum to Invest As a broker-neutral system, CoolTrade doesnt have a minimum for testing in simulation mode. However, once youre ready to go live and open an account with one of the preferred brokers (or connect CoolTrade to an existing brokerage account with one of them), youll be required to fund it with a minimum amount specified by each broker. Account minimums vary from broker to broker. Some brokers like TD Ameritrade will allow you to start with as little as $2,000, whereas others like Interactive Brokers (my personal favorite) require a minimum of $10,000. CoolTrade Inc. is a software developer, not a financial advisory firm. So Ed and his staff cant recommend any particular strategy no matter how nice you ask. However, the majority of CoolTrade users Ive communicated with are running swing trading strategies such as the Dow 30 Strategy and Two Dollars And Under Strategy (which can be traded with a small $2,000 account). If you want to run a day trading strategy in a live account (i.e. one that executes 4 or more trades per day within 5 business days), youll be required to adhere to a minimum account balance for what the SEC calls pattern day traders. According to NASD and NYSE day-trading margin rules, all pattern day traders must maintain a minimum of $25,000 in account equity at all times. More information about these regulations is available here. Trading Commissions Commissions are an important consideration when it comes to choosing a broker because they can really eat into your profits if youre not careful (it pays to read the fine print). Trading transaction fees can vary greatly from broker to broker. The cost depends on several different factors, including the number of shares traded, whether the shares are in round lots of 100, price of the shares traded, and the number of trades that are placed each month. Here are the basic commission rates offered by some of CoolTrades affiliated brokers (prices subject to change):

http://www.finra.org/Investors/SmartInvesting/AdvancedInvesting/DayTrading/p005906

Interactive Brokers (IB): $1 per trade for 100 share lots ($.005 per share with a minimum commission of $1 per trade for U.S. clients). TD Ameritrade: Normally charges $9.99 per trade of 100 shares, however, upon request, CoolTrade subscribers receive an unadvertised discounted commission rate of $5 per trade. Options House: Charges a flat rate of $2.95 per trade, regardless of the number of shares. MB Trading: Offers either a flat rate of $4.95 per trade, regardless of share size, or $.0075 per share with a $4.95 minimum per trade. Leverage Anyone can open a cash account at one of CoolTrades broker partners websites with a 1:1 margin. But many of them also offer non-IRA/401(k) stock trading accounts with either a 2:1 or even 4:1 margin by request. Similar to buying a house with a mortgage, a 2:1 or 4:1 margin account allows you to borrow money from the broker to buy more stock than youd normally be able to buy. These are different from regular cash accounts in which youre able to trade only using the actual money in the account. Not all securities qualify to be bought on margin you cant do it with ETFs, for example but lets say that you deposit $10,000 in a 2:1 margin account. Because you put up 50% of the purchase price, you now have $20,000 worth of buying power ($10k out of pocket and $10k loaned to you from the broker). Then, if CoolTrade bought, say, $6,000 worth of stock, youd still have $14,000 in buying power remaining. At this point, you havent yet tapped into your margin and would only start borrowing the money when the system purchases securities worth more than $10,000. When used properly, leverage can be very profitable but just remember, its still debt that youll be charged margin interest on by the broker and will eventually have to pay off. Note: A regular IRA cash account takes 3 days to clear funds and makes you wait 3 days before you can utilize the funds again, even if you have no open positions. Interactive Brokers is the only broker Im aware of that offers something called an IRA-MARGIN account.

An IRA-MARGIN account frees up your funds immediately after every trade, and thus, allows you to continue opening and closing positions without a waiting period. Just keep in mind that even though its called an IRA-MARGIN account, you still cant short stocks in it. System Requirements

CoolTrade can run on almost any type of computer as long as theres a dedicated internet connection. And while its easy to download and install, its also a serious memory hog. So to maximize its full potential, your computer should meet the following requirements:

Windows PC with Windows 98, Windows 2000, Windows XP, Windows Vista, Windows 7, or Windows 8.

CPU speed 2.0 Gig Hz or higher Cable or DSL internet connection (highly recommended) At least 1 - 2 GB RAM

The system is designed to update its market data several times a minute throughout the trading day, which is why the company recommends that a wired broadband (cable or DSL) connection to the internet be used. You can run it on a VPS (Virtual Private Server) or a laptop, but installing it on a desktop computer is a better way to go. Many users buy an inexpensive desktop and only run CoolTrade on it, which is what I did. I initially started out running CoolTrade on my main computer alongside all my word processing and spreadsheet programs. But after a month I decided to move it over to a separate dedicated computer that I purchased strictly for automated trading. At this time CoolTrade doesnt have a Mac version available, but there are plenty of low-cost PC emulators out there that allow you to run the Windows operating system on a Mac.

Costs and Software Support By now, Im sure youre wondering what it costs to become a CoolTrade subscriber, so let me break it down for you The cost to purchase the CoolTrade system is $3,500 (there are no upsells). This price includes everything you need to get started: the software, 10 ready-to-go strategies, video instruction, access to the community board and ongoing support. Theres also a monthly subscription fee of $125 that kicks in after the first year. In certain cases it may be possible to have your pension plan pay for the system. But youll want to consult with a licensed financial adviser or CoolTrades IRA/401(k) plan specialist I mentioned earlier for more specifics on how it can be done. Note: Prior to November 2012, all CoolTrade subscribers who purchased the software paid $4,000 upfront and still pay $4,000 to re-subscribe every year. Limited Time Offer: At the time of writing, CoolTrade is currently offering 2 years of free subscription fees (worth $3,000) to anyone who purchases the software. Ive been told by an executive of the company that this special deal will most likely be phased out by March 1st and wont be offered again, so just a FYI on that. Free Unlimited Technical Support & Training The company and staff (which include many who actively use the system themselves) are all about making sure the customer is taken care of. Theres never a fee for technical support or training, so if you run into any snags whatsoever, you can contact their friendly support staff and get your problem resolved right away. Free Setup Assistance The software is easy to set up, but if you dont want to do it yourself, you can have the support staff at CoolTrades home office remotely connect to your computer and install and set up the software for you. As long as youve got internet access, youre good to go.

Quick Recap:

1. Above average historical performance validated by over 14,000 clients in 40+ countries (many customers report profits of 5 10% monthly).

2. Endorsed by 8 of the worlds top brokers. 3. Performs thousands of analysis processes per second, to provide the system with

the best profitable trading decisions possible. This is more analysis than a human could ever accomplish in a split-second approach.

4. Can create profits in both up and down markets. 5. Trades the following exchanges: Australian, Hong Kong, Singapore, India,

London, Canadian, and U.S. 6. Translated in 6 languages. 7. 10 proven off the shelf strategies included with hundreds more available on

demand. 8. 100% automated. The system places all the trades for you automatically with

absolutely no programming required. 9. No previous stock investing or trading knowledge required. 10. Unlimited ongoing phone and email support. 11. You can test the system in simulation mode as long as you want without a

brokerage account. 12. Full transparency and control of your funds when you decide to start trading live. 13. Put your 401(k) and IRA funds to work in a more leveraged way than they are. 14. Available internationally, not only in the U.S. 15. Recognized by industry experts as the only fully automated system for trading the

stock market (also trades the Forex) available to the general public. 16. Executes both short and long strategies, allowing you to be able to take profits in

both bull and bear markets. 17. Trade with as little as $2,000 USD.

Final Words In 1992, online trading was virtually unheard of and TurboTax was just starting to catch on as a convenient tax prep program. Today, over 80% of retail brokers offer online trading and TurboTax is used by 24 million tax filers. Robotic trading is going through a similar evolution and has already proven itself. Every major investment firm is leveraging this technology to rake money out of the market faster than we can click a mouse.

And while robotic trading systems may never completely replace certain long-term wealth-building strategies, theres no question that human traders and traditional mutual fund investors are at a severe disadvantage in todays volatile markets. The silver lining in all this, though, is that these conditions have spurred on gifted innovators like Ed Barsano to challenge the conventional financial industry and create a new wave of online investment alternatives for us. I believe CoolTrade represents a paradigm shift in the way millions of individuals will manage their stock portfolio in the future. In my opinion, its one of the best ways for the average person to protect themselves from the predatory practices of large investment firms and banks and the entire financial system as a whole. The decision to purchase CoolTrade was a total no brainer for me after I conducted my research and due diligence, which included speaking to Ed directly. I knew I wanted to have it and use it. I tested a number of different strategies that came with the software (and a few I copied from other users) before opening a live account with Interactive Brokers, where Ive currently got the system auto-trading a portion of my wifes and my self-directed 401(k). It continues to operate flawlessly for me, but let me reiterate that you should always run every strategy in simulator mode first before connecting it to real money account. Become familiar with how the software opens and closes positions for a while and then go from there. Incidentally, I think a big mistake newbies make (based on many posts Ive read on the CoolTrade forum) is changing strategies way too often (like weekly). In my experience, the serious money to be made comes after the stocks have gone down quite a bit and Im entrenched in positions at different price points. It seems to return steady profits the longer Im in these positions, and takes profits nearly every day, but I noticed that in the beginning I had to exercise enough patience to give the stocks a chance to move around a bit. Thankfully, CoolTrades system-driven approach does an excellent job of taking the emotion out of the market. It removes the fear, greed, lack of confidence and inconsistency that causes most people to lose their money.

Rather than take chances guessing what the market will do next, the system follows the trading rules to the letter and will stick to the plan no matter how ugly or uncertain the market looks. The software has the patience of a tortoise to not only squeeze out some great compounded returns over time, but keep your retirement funds out of the danger zone. Its all point-and-click easy. Simply install the software on your computer (or have the CoolTrade staff install it for you), pick a strategy, turn it on and walk away. The system will handle the rest.

Having said all that, CoolTrade isnt the holy grail by any means. Nothing is. The profit potential is undoubtedly much, much higher than traditional buy and hold strategies, but none of us has a crystal ball to know what the markets going to do next.

How the system performed in a market last month or last year isnt indicative of how it will perform today or tomorrow. A lot of it depends on the strategy that you choose and your comfort level.

Just remember, you dont have to understand all the terminology or know anything about the stock market to be able to strap right in and put this kind of passive money machine to work for you. Given my positive experience, it might be something for you to look at. To Learn More Click here to watch an in-depth software overview and Q & A session. Click here to visit the CoolTrade website to purchase the software (the Sign Up link is on the upper right-hand side). Bonus: Ive curated a small, yet refined list of proven CoolTrade strategies you can copy. If youre interested in seeing this list along with the exact strategy Im personally using, simply login to your Wealth Vault members area after youve purchased the software. Questions or comments can be submitted via our Mailbag Q&A page, within the Vault, as well. Sincerely,

Brad Wajnman Co-founder, M4 Research

http://lwlvids.com/evp/cfoverview/http://www.lwlurl.com/ctpro/

Disclaimer: This report is for informational, educational or demonstration purposes only. This is neither a solicitation nor offer of advice to any user of this information. Unique experiences and past performances do not guarantee future results. You should speak with your CPA or financial representative (broker dealer, financial analyst, advisor) to ensure that the software /strategy that you utilize is suitable for your investment and risk profile; especially, before trading in a live brokerage account, or if you have any doubts at all. CoolTrader Pro and/or, CoolTrade do not make buy, sell, or hold recommendations. All opinions and/or suggestions given hereto is intended for running the CoolTrade software in simulation mode only. No advice on trading is given. Any reports shown are examples of closed trades and do not reflect the running P&L of open positions. One must refer to trader dashboard to see the net P&L of all open positions. All price points are mathematically driven and shouldnt be the sole basis of a trade. There are risks associated with utilizing an internet-based computerized mechanical trading system including, but not limited to, the failure of hardware, software and internet connection. In addition, we are not responsible for communication failures, distortions or delays of data. Compensatory Disclosure: Our review of this vendor was unsolicited and no one has paid us to write it. However, Wealth Vault members who find this vendor through our site and do business with them may result in M4 Research, LLC receiving a finder's fee/commission from this vendor, which is used to subsidize our operating expenses for hosting, support staff, etc. These commissions are paid by the vendor and are not an additional charge to any individual member. In many other cases, M4 Research, LLC receives no compensation whatsoever. The needs of our members always come first, and the presence or lack of financial compensation in no way affects any endorsements made within our members' area. We always give our honest opinions, findings, beliefs, or experiences about the products, services, resources or IVs (Investment Vehicles) we endorse.