Rhythm of the Markets Banner
blue line
options trade two weeks free sign-up button
an open challenge
To all Club 3000 Vendors of S&P and
Index Options Trading Programs

The war of words is over... It's now a time for action. Over the years we have all advanced our skills as traders and educators, learning from our experiences and from others. As you know there is no one way to trade the markets, especially the S&P each of us has enjoyed success and hopefully learned from our mistakes and that has made us better traders and teachers. Sadly, over the last few years we have each Communicated information through articles and advertisements that has left readers confused as to "who" has the "best" methodology that will "help" them achieve their trading goals. The student should be first and foremost on our minds. So, because we are all interested in advancing the skill of traders and believe our methodology is the "best" I propose the following:

  1. We each deposit $100,000 in a new brokerage account (I did 3 months ago and faxed copies to Fred).
  2. $50,000 is nonrefundable.
  3. We trade our methodology as we teach.
  4. We nominate Fred Kastead as judge & jury for our Trading contest.
  5. We meet with Fred in July in Delton, Michigan to Further discuss the specifics of this contest.
  6. Contest to run from August 1, 1998 to July 31, 1999.
  7. "Winner takes all."

When we meet with Fred this summer, we will present him with our methodologies and trading strategies. In addition to all duplicate confirmations and statements, we fax Fred our nightly charts explaining our trades if any. He can accept or reject any questionable trades. I further suggest that the ultimate winner pay Fred a percentage of profits for his time. The rules are simple. Quarterly results will be posted and mailed in the club 3000 newsletter. We will trade exactly what we teach. We can trade up to 10 S&P contracts intraday and no more than 50 OEX or 10 S&P futures options at a time. Options may be held overnight. Those of you who do not wish to trade options can trade an additional 10 S&P’s and hold these overnight. This stipulation is designed to prevent the wild speculation that might occur late in tee game by those trailing and have nothing more to lose by plunging. We want to avoid that "go for broke" attitude that permeates all those paper trading contests that mean nothing since there is no money on the line.

I have suggested $100,000 as a minimum since this is not chump change and I believe the winner should be adequately compensated. It is my sincere belief that this will afford each of us an incredible opportunity to put our "proprietary methodologies" to the test plus demonstrate our "ability" to trade the markets.

I have already put my money on deposit. I am looking forward to participating with all of you in this event. I will hold this invitation open for 30 days from the time it appears in the Club 3000 newsletter.

Please respond in writing to the Club 3000 – Fred awaits your written replies.

My letter of May 31st, 1998, that appeared in Club 3000, was motivated by my desire to end once and for all, the unprofessional jealousy and letter writing campaign between the primary S&P system vendors. So back to the original "Challenge letter" of issue 98.05. My primary objective was to have all of us participate in a completely objective trading contest demonstrating the validity of the systems we use to trade and teach others; nothing more nothing less. Why? Because from my experience, the trader of today is bombarded with hype and data that, any times proves to be inaccurate. And an objectively monitored trading contest, with strict rules, would allow the trader/consumer an opportunity to see inside the vendor's black boxes. Then, the trader could decide what methodology best meets his or her objectives and trading style.

For example: Most people in our business know that Hillary C. did not "trade" her $1,000" to $100,000. Yet, she certainly has the "record and, if correctly packaged and promoted, would have buyers for her "System".

So again, back to the original point of my "Challenge Letter" in issue 98.05 of the Club 3000 News. Due to the fact that no one accepted my challenge or even offered an alternative of suggested modifications, my offer is canceled. In closing, I wish to thank all of you who called and supported the idea of a "real" trading contest. I am sorry that it could not be arranged and held. I still believe it would have been a significant contribution to traders and our industry as a whole.