Frequently Asked Questions - LS Trader
This to a large extent depends on how much capital is used to start trading as larger starting capital enables the trader to trade more markets and thereby have greater profit potential. The system is set up to target triple digit annual average gains while keeping drawdowns within tolerable range. This is based on extensive testing over our market database that goes back to 1982. Past performance is no guide to future performance and the system may perform better or worse than that in the future.
Technically speaking, spread betting is gambling or speculation but our system has a long term profit expectation and as such we have an edge. This means that over a sustained period of time, we know that our system will be profitable. This is done by limiting our losses but maximising our gains. Gambling on the other hand is more about luck and hoping that a certain event will occur, however with no 'edge'.
These can be categorized into 2 groups: - Initial start-up costs: the cost of running a PC and having an internet connection. - Running costs: the cost of your subscription to our service. Opening a trading account with an online broker is almost invariably free and there is a selection of brokers to choose from. We also provide our free software when you purchase our system.
No! As a rough guide this system can be followed in as little as 15 minutes per week, but may take up to 1 hour per week.
The starting balance used to a large extent dictates how many markets and trades can be made. It is possible to start trading with small starting balances of around £3,000 but ideally more, such as £5000 is better. Obviously starting with a larger account size means that more trades can be taken and progress is usually quicker. Additionally, larger account sizes benefit from better diversification, bringing greater profit opportunities and lower risk.
Yes! However you should note that spread betting is not tax free in all countries and you should be sure to check the legal status of spread betting in the country you are resident in.
No. The system is a weekly system and we place orders on a Monday, or open trades manually on a Monday, that are then good for the week. Those that don't like to open trades by orders will need to open them manually during the week but the entry levels and stop losses etc. are all provided on Sunday night for the week ahead. On average we make around 5 trades a week, although this will vary on a weekly basis and on market volatility, but averages out to around 250 trades per year.
Should you have any problems then you can simply contact us for support. This can be done by visiting the support tab in the menu bar and submitting a support ticket. We normally reply within 24 hours and in most cases within a few hours.
Yes. You can cancel your membership at any time if for any reason you are not delighted with the system. To cancel simply submit a ticket at the support page requesting cancellation and we will process it for you.
This is probably because you clicked on Order To Open, rather than Deal Ticket. If you want to open a trade manually, Deal Ticket needs to be clicked. If you want to place an order to open automatically based upon the information that you enter, i.e. an entry stop to be filled should the market reach the level you enter, Order to Open should be clicked.
This is because the market is closed. When they market is green is it open, and when it is blue/red it is closed. You have to wait until it is green before you open any trades.
When logged in, click on the down arrow which is on the right of the trade, and go down to "Get Info". This will display the market opening and closing times.
The system can be followed with other spread betting firms but they don't usually cover all the markets we trade or all the contracts we trade. We like ETX Capital as they cover all the markets we trade and have a good, easy to use and reliable spread betting platform. You can also use IG Index or any other spread betting platform such as City Index. Our trading guides within the members area shows live screen shots taken from IG Index and ETX Capital, showing step by step how to trade with either platform. It is possible to use other platforms s but the market coverage may not be the same.
It sounds like you trade on a global basis; does that mean I have to be up all hours that the markets in various countries are open?
No, we only provide the trades once a week, on a Sunday evening. This trade update is good for the week ahead and includes all the orders for the coming week. These can be placed Sunday evening/Monday morning for the whole week ahead. This is a very simple process that does not take long and step by step instructions are included within the members area.
Order is when you actually open the trade and OTO means order to open. This is where you program an order to open at a certain level if the market hits that level. Most trades are opened using this procedure but all trades can also be opened manually. Using the order to open facility means that it is not necessary to sit in front of the screen all day long as orders will fill automatically should the predefined conditions be met.
There are many on-line brokers and spread betting firms and you can usually open an account on-line in a few minutes. We like ETX Capital and City Index. Accounts with either of these spread betting companies can be opened online.
To become an affiliate you will have to contact us by opening a support ticket and requesting to become an affiliate. We will review your application and then come back to you within 1 working day.
In the members area at LS Trader there is a page where you can download the LS Trader manual. Guides on where to find markets on IG Index and ETX Capital are included.
We use non guaranteed stops as the spread is narrower. This is obviously personal preference but using guaranteed stops come at a premium. Our research shows that over time you pay more in extra spread to use guaranteed stops than any extra losses that are incurred by the markets skidding through stops. At the end of the day each individual has to do what he/she is most comfortable with.
Non guaranteed stops are cheaper obviously and unless the market gaps or skids through your stops you will stop be stopped out just as effectively as with a guaranteed stop. Guaranteed stops incur a premium which is added to the trade by a wider spread. Obviously a guaranteed stop will close a position at the exact level specified whereas a non guaranteed stop can go through the stops on occasions, but this does not happen all that often. On balance we have not found much benefit from using guaranteed stops but this is personal preference. Some people feel more comfortable knowing exactly where their trades will be exited regardless of market conditions, and this is perfectly fine.
When inputting the account balance into the trade bet calculator should that just be the cash balance currently in the account or should it also take account of open P&L on live trades?
Total account equity is the current balance, plus any trading profits & losses.
The average duration of trades is usually between 30-40 days (6 to 8 weeks). In 2008 we had numerous trades that lasted in excess of 100 trading days. Losing trades can be exited quicker, sometimes on the same day or week that we enter but the winning trades often last around 80 days.
In our opinion, luck plays little or no part in trading if you have a good system which has an edge. Consider the roulette table at a casino. You know that the house has an edge as they are paying 35 to 1 on 36 numbers and they have zero. Over a long period of time, regardless of what system you use, the house will come out in front as they have an edge. The LS trader system also has an edge and if followed over a long period of time, this edge will become prominent and the system will therefore come out in front over time. The only time when luck plays its part is when you start following a system. Someone who started trading this system in 2008 could be called lucky as they started at a great time, but over a period of time, luck will not be a factor to trading success.
The best way to contact us is to submit a ticket at our contact us page. We aim to respond to all enquiries within 24 hours.
There are 3 positions for trading Out = no trade Short = selling the market to go down Long = buying the market to go up. Therefore Short from out means that we have gone short from being out of the market. Long from out means we are buying the market from being out of the market etc. Out from long means that we were long but are now out of the market etc. There is a key at the bottom of the trades sheet that explains our terminology in full.
When you sign up there is a complete step to step guide with screenshots within the members' area, as well a quick start guide. We assume that the new member knows nothing about spread betting at all, so we provide ample instruction by way of guides within the members' area and email support should you need it. There is a learning curve with anything new but we believe based on years of experience that you will find the system easy to follow and will provide assistance wherever needed via email support.
The service does come with a 14-day trial for only £7 so if for any reason you find the system not to your liking, you can simply cancel within the first 14 days and request a refund of your £7. You can cancel at any time.
The system is a trend following system. This means that it seeks to identify trends in the various markets that we trade and then follow them until the trend ends. We trade in 41 markets, including stock indices, commodities and forex and the system gives a signal when we will enter each trade. Once a week on a Sunday we send out a trades sheet to members including all the orders and entry stops that the system will enter and exit trades at during the week ahead.
Rolling over contracts means that on contract expiry (all dates are listed in the IG handbook. Please check this out for a full explanation) the current bet is closed and settled and a new bet is opened from the new market level. At contract expiry, the original contract is closed and settled. Your spread trading firm or broker then pays you the balance of the closed contract if it closes at a profit, or if it closes at a loss they will deduct the amount from your account. This profit or loss is calculated on the entry and exit price. For example say we sold the September Dollar Index short £5 per point at 8200 and on the last dealing day the market closed out at 8000, then you would be paid 200 x your bet size, which in this case is £5. Therefore 200 x £5 = £1000. Your spread trading firm or broker then automatically (assuming that you have given permission for them to roll contracts automatically as we do. For instructions on how to set up automatic rollovers please see your weekly trades sheet and email) would then open the same sized trade in the next active contract, which in this case would be December. Your new position would now be short the December Dollar Index at £5 per point. This is now essentially a new bet and will be settled when you exit the trade in the same way as normal, with the entry level being the level at which the new December contract was opened. This may sound confusing but when you sign up, you can set this as automatic in IG Index, so they do this for you, and you never need to worry.
This depends on the account size. We have different portfolio examples and different risk per trade sizes based on account size.The percentage ranges from 4% to 2%, 4% for the lower portfolios, and 2% per trade on the higher portfolios. Obviously these figures are the figures we use but you can select your own portfolios and risk per trade to what you feel comfortable with. Some prefer to lower the risk and trade successfully using 1% risk per trade. This is a matter of personal preference and risk tolerance.
I have dealt on the stock market but have no experience of spread betting, how is it all explained ( account opening, placing bets etc etc) and how long do you think it will take to get up and running in a proficient manner?
There are detailed instructions within the members area at LS Trader, including a step by step guide and an instruction manual that covers everything that is needed to be known. Ideally this manual should be read in its entirety but most of the information required is very simple to follow and is explained on the weekly trades sheet and trades emails. Using this and the calculator should enable anyone to get started in less than 1 hour. Investing an hour to understand the system will reap considerable benefits so it's well worth the time and effort. Everything is explained in a step to step fashion and is very easy for novices and easier still for experienced traders. You should really understand it all in about 30 minutes.
Information relating to performance can be found at http://www.lstrader.co.uk/performance/
The LS Trader system has been backtested from 1983 to 2006, and has been offered online since 2007. The results from 2007 onwards are as per the weekly trades sheet published within the members area each week. For further information on this please visit our perfomance page. It is important to remember that the past is not a necessarily a guide to the future. Future results may be higher or lower than past results.
The LS Trader system is a general system to indicate when and how to trade particular markets. It is not Advice, and no individual advice can be given to our subscribers.
If you have even the most basic computer skills, you will be able to follow the system. We provide complete step-by-step instructions for everything you need to know in order to follow the system, including how to open a spread betting account and how to place trades and orders etc. Our trading manual is extensive and covers everything you need with detailed instructions and screenshots where necessary. We even provide software in the members' area to further assist members as well as unlimited email support.
You need a PC, Mac or tablet with an Internet connection, plus a spread betting account. You will also need about one hour per week to follow the system. The system can be traded from anywhere in the world where Internet access is available, subject to the laws of each Country.
Yes. However, not all spread betting firms are created equal. Some have a better range of markets than others and minimum bet sizes and spreads are also a factor, as is the quality of the platform itself, quality of service offered, and of course stability. Some spread betting firms are therefore better than others. In the members' area we provide details of those spread betting firms that we have found to meet the above criteria and are a good fit for use with the LS Trader system. You can however continue to trade with your existing platform if you prefer.
Currently the system trades 41 markets including commodities such as Gold, Silver, Corn, Crude Oil and Wheat etc. as well as trading major worldwide currencies, such as GBP/USD, EUR/USD, USD/JPY and the Dollar Index. Furthermore the system also trades the leading stock indexes from around the world such as the S&P 500, Nasdaq 100 and Nikkei 225 as well as interest rate futures and bonds, such as 10 Year T-Notes and 30 Year T-Bonds. In other words, the system trades a diversified portfolio of markets across all the main asset classes.
It is not necessary to know anything about these markets, or to have traded them previously in order to spread bet them successfully, as everything required to do so is included in the system and members' area.
Yes. We run the system over real market data at the weekend once we receive the closing price data from the exchanges each Friday. We then publish the signals that the system generates for the week ahead in the members' area each Sunday. Members can then place their orders and adjust their stops on a Sunday evening/Monday morning for the week ahead. This will take less than one hour. Occasionally we send out further updates during the week where necessary that can be acted on in minutes. Altogether it will take one hour or less each week. This is one of the many great advantages of trend following.
All membership plans come with an initial 14-day trial for £7. When you join you will get the first 14 days for £7. If before the end of the 14-day trial you decide the system is not for you, you simply cancel and will not be charged again. You can also request a refund of your £7. Following the 14-day trial, you will be billed in accordance with the membership plan you have chosen. You can cancel at any time if for any reason you are not 100% satisfied.
Quite simply trend following is the most profitable approach to trading and has been for several decades. The records of many of the world's most successful traders and money managers show this as a fact. More money has been made in the markets from trend following than by any other approach.
In addition to the records of the best traders proving the success of trend following, our own testing and research that has been run for over a decade also shows this clearly. We have tested all approaches and all indicators to trading over real market data, across many different markets and different market conditions. Trend following consistently beats all other approaches in our testing, so quite simply there is no point in trading any other way. Not only that but because trend following is simple to use, it gives maximum results from minimal effort and can be followed is less than one hour per week.
We're not selling it and we never will even though we have been offered substantial sums in the past to do so. The system and the years of research that we have put into developing the system are far too valuable and remain proprietary to us. We will never sell the system itself or the system rules. Instead what we do by way of our membership site here is to give members access to the trading signals that the system generates. In that way our members can have all the benefits of the system for their own use while we remain in control of the proprietary system.
Since we are already doing the research and running the system for our own use, it makes commercial sense to provide access to the signals for members at the same time. After all, if we help our members profit in return for a modest subscription fee, our members benefit and we benefit. This is exactly the same reasoning behind why fund and money managers also trade client money in addition to their own, as it enables them to generate additional income from the same amount of effort.
Furthermore, once you have a system that is long term profitable, all that is required is the discipline to follow it consistently. By providing this service to our members and helping our members become better traders in the process actually helps us with our own trading discipline, an essential quality to long term trading success. So by helping others we are helping ourselves.
Contacting us is easy and we offer full support by email via our easy to use online helpdesk. If you need help or want to contact us for any reason, simply visit the Support page at the top right hand side of this website and submit an email ticket. We generally reply to all tickets on the same day and normally within a few hours. If you need help you will get it.
LS Trader membership plans begin with a 14-day trial for £7. Following the 14-day trial, membership fees are £147 per month. We also offer discounts for those wishing to take out longer memberships, such as quarterly or annual memberships. Full details of pricing and different membership plans can be found on the 14-day trial page. All membership plans begin with a 14-day trial and can be cancelled at any time.
To get started, simply click the button below. You will then be presented with our different membership options, all of which begin with a 14-day trial for £7. Simply chose the duration of your membership, enter your name and email address, select a password and then press the button to complete your subscription at PayPal. The initial 14 days will cost £7. After the 14-day trial, membership plans are billed in accordance with the plan chose. Once you have completed at PayPal, you will gain instant access to the members' area, where we look forward to welcoming you to our inner circle of winning traders.
Returning members can re-join the service by visiting the returning member page here
This returning member page gives 3 membership options for previous members that are returning to the service, including discounts for longer-term renewals, i.e. quarterly or annual discounted membership options. Each member can only have one 14-day trial so if you want to re-join having previously been a member, please click here
Click the button above to start your free trial now!
Here's a fraction of what you'll receive...
- An average of 5 trading signals per week.
- A full list of all open positions, plus entry and exit levels for all 41 markets the system trades
- Access to our position sizing software
- Regular updates and alerts, sent by email and posted in the members area
- Instant access to our exclusive members area
- Extensive manual covering all aspects of successful spread betting
- Unlimited support
- 14 day trial for just £7. Cancel anytime
- Plus much, much more...