Here's why it doesn't work

Here's why it doesn't work. Got 2 dow behaviours, one time the other trend points. Its got positive divergence and.....it carries on down.

So easy to annotate a chart in hindsight

Why hasn't anybody asked for a refund as they've been scammed?

Not worth arguing with him, as he's just an argumentative C*N^.

They're too embarrassed to have anything to do with his BS method.

He will always come up with a smart arse answer, where you can't win, as he's always right!

In summary, his method is very subjective, what might not look like a head and shoulders to you, Stuart would make sure it is. What might not look like positive divergence at the time it takes off, after the event it's bleeding obvious!

Why bother with him.....treat it as a sunk cost and lesson learnt.

Wheres the trades today?

His guarantee is bullshit, wheres the 100 point trades today? There are none, except for a couple of double tops , double bottoms, with positive negative divergence which will yield you 10 points if that.

There was no way you would get into the strong move up after it reversed back down from the open. Wait a minute, I'm sure Stuart would find something!

Nice Try on T2W

Well that surely brought the rat out of his hole.

I certainly done the homework, I back tested it like no tomorrow, I paper traded it, I live traded it, I took screen shots, I analysed every trade after the close and the conclusion was to give it up, it's not worth the effort.

So you don't need the money then Stuart!

Why are you charging them $100 upgrade fee then? $100 *10-15 = $1000/1500, nice little sum.

Why are you charging $250 per month for some indicators in Tradestation when already your poor Students have paid you enough money? None of them will be upgrading as they REFUSE to pay you one more dime.

Why then are you then increasing it to $750 per month?

Why have you increased the cost of your course to $4,500? Even the crappy chart reading course has gone up by $1000!

You trying to make out that you get what you pay for, it's better than institutional software? Give us a break. You live in la la land, or even better still "Neverland".

I'll tell you what. Why don't you put up or shut up, where's your trades you were going to show us? If you want to muster what little respect people have for you, show us some trade statements with charts showing how the method worked, then the wider community might give you a second chance. We're not the ones selling a method, YOU ARE! So you have everything to gain by doing this.

Come on, be the big man that you say you are and show us some REAL trades, none of your photo shopped fraud artworks.

If you don't, then everyone will see what a fraud you really are.

So what is the truth?

Here's what I think.

As he can't trade himself, just develop software, he's had a brainwave to make some money and scam naive newbies into his methodology.

He's sat at his desk for a length of time and studied the Dow chart, noting down familiar patterns, and why it reverses, example, hit an untouched stop from yesterday, hit a round number etc. He's bascially jotted down his thoughts into a so called methodology that cannot practically be applied. Well, it works when it doesn't, a broken clock is at least right once a day!

He's developed some software to aid the method, recorded some videos explain in hindsight what happened on that day, put together some PDF's with pictures and then started charging people $4k, explaining to people that they will be millionaires by the end of the year, as you will TRADE LIKE AN INSTITUTIONAL TRADER!!!! All very good marketing.

Not once in any of his PDF's are entries, stops and exits shown, just a discussion of what has happened.

Is it mechanical?

Mechanical....this is open to interpretation. To follow a set of robust and rigid rules. Well, Stuarts rules are all over the place, 1 min he's saying 100% of your long entries are when MACD>=0, next he's saying as long as there's divergence.

Would mechanical mean you get an entry signal? Well you don't. You get =if(x+y+z)and(a+b+c) OR(if(d+e=f)AND (Y/2*4) THEN "Pull Trade". Something like this. It's just so subjective, has a reverse head and shoulders plotted? Is the right shoulder higher than left? has it made a higher high? What's the time from last cycle low? 15/30/45 mins? S1 which means lowest support point was 30 minutes ago, were now in a DRUP its at mid keltner this should now be a UC, weve got 30 mins since S1, were at 8550, theres positive divergence, right, it all lines up, click........oooops.... it carries on down taking out S1 and going lower.

This is so common. Not even Tradestation is going to give you any signals, just MAYBE signals.

Mechanical should be:

a) a clear set of rules

b) completely mechanical, it gives a signal, an entry price, target and stops

He must be completely dumb to pump his own method on Elite Trader

When the guy got his first critical review from a past student over on EliteTrader

http://www.elitetrader.com/vb/showthread.php?s=&threadid=139008&perpage=6&pagenumber=10

he created a false account "floridadaytrade" and logged on as one of his students, I believe Ron, and pumped his system. But the funny thing is, he done it from the same PC as his genuine elite trader sign on, and he used his giveaway writing style. he got found out by the mods and was banned. He tried to blame it on him and his friend Ron sharing a PC.

This guy must be thicker than Homer Simpson!

Strategy Runner upgraded to Tradestation

There were a couple of upgrades to Day Raider, 1.0, 2.0, 2.1, 2.2, all in Strategy Runner and Stuart was proud of his achievements, saying that this piece of kit was far ahead of any institutional black box. Hahahahahhahaha!! Someone please stop me crying from laughing.

So why a new upgrade?

At first he was looking at Ensign and it looked very colourful and pretty, which I think he gets off on, but something happened and he called it off. Something to do with limitations. I believe he was a month or so into the programming of it. Must be a robust system and fully tested if built in a month, right? LOL. But now he's moved over to Tradestation and created it in quicker time! Must be awesome.

So why?

To help his students out
To make it more mechanical
To earn more money

Three guesses as to which one, well, he is charging his students the privilege of his superior software skills to upgrade. Firstly, a one off $100, then after 60 days it will be $250 per month for his old subscribers and then $750 per month.

This should be peanuts, right? As they're all earning $10k a week. ROFL!!!!!!!!!!

I think Stuart needs to go and see a shrink because he has his head so far up his arse he can actually poke his tongue through his belly button.LOL

But what about the testimonials on his site

Beginners luck maybe? Pushed into giving a review by Stuart?

I would take those testimonials with a pinch of salt as I haven't heard anything more from them.

Does he give live training?

Now you're asking something now, Does he give live training?
If he was a hotshot trader it shouldn't be a problem, right?
A couple of students asked for this and they were immediately put down and basically shouted at, at not doing their homework. He will give all excuses saying he done it before and it was a waste of time. He will "cherry pick" a good day, and then do a video on it analysing everything in hindsight.
That's as far as "live" he will go.

Talk's a good game but does he trade?

Stuart is one of the worst teachers I have ever come across, he will talk to you in gibberish, as a new student! and patronise you saying it's so easy even a fifth grader can do it, you ask a question, thats if he lets you, he will just completely avoid it and say something that you don't really understand. He is not interested in your welfare or how you doing trading his method. If you moan about something, he will get on the defensive, that's why he's put a post on his blog, saying "No Whining", because really he is a facade and doesn't want anyone to pick apart his method, that he so passionately believes in. So the $64,000 question is........does he trade his system????

It is a resounding NO because it doesn't work!

Introduction

I thought I would publish a blog to make the whole world know, so that they don't succumb the same fate I went through when signing with this con man "Stuart Kidney" aka Mechanical Day Trader www.mechanicaldaytrader.blogspot.com. He promises the world, trading the YM futures and says it's so easy a fifth grader could be making 100 pts minimum per day, 500 points per week. Yeah right!

I bought into his methodology which cost me $4k in the hope that I too would be making the kind of points he guaranteed. That guarantee is bullshit, as it's based on the "Kindergarten Trades", he calls, which is what the student should be learning from day 1. These trades are just bascially double bottoms / tops with positive / negative divergence of the MACD. It's easy to see these after they happen, when the MACD has crossed, but when it has crossed the trade is now too far gone to take. He would most probably find a double top/bottom that occurred, I mean, they're everywhere, in order to invalidate your claim. But shouldn't it be backed up with the main piece of software that gets you into the move, "Day Raider" through Strategy Runner.

His software "Day Raider" does nothing to get you into the move, all except, if all 3 indicators show divergence, rarely happens!!!

Day Raider was built in Strategy Runner, and we were all told that this piece of kit was proprietary, even better than institutional software. To my disgust here are the indicators:

Main chart:
Bollinger Band 14, 2 exponential
Keltner channel 8, Atrs 1 Avg not visible
Parabolic Sar Factor 0.01 / maximum 0.4
Ichimoku 18/36/6/13
Time Series Forecast - 3

Indicators:
Aroon oscillator 9
TRIX 9
MACD 6/13/6

The methodology:

Yesterdays Trade - mechanical systems (institutional get the wholesale prices these would be your naked highs (upper wick) and naked lows (lower wick)), make the AM low and high and PM low and high.

AM low = code 1
AM high = code 2
PM low = code 3
PM high = code 4

So yesterday's trade would occur from code 3 or 4, long from code 3 and conclude at tomorrows code 2 or short from code 4 and conclude at tomorrows code 1. The methodology says that if a gap up then were long from code 3 and if we gap down were short from code 4.

You need to understand when yesterday's trade finishes, this again is very ambiguous, 100 points from code 3 to code 1, 150 points, 180 points, 200 points. It's just a stab in the dark!

So if from yesterdays code 3 to the close is 50 points, it gaps up 50 points, then theoretically yesterdays trade should be finished as done 100 points already from code 3. If only it was the case. Many times it would do 120 points, 150, 170, 200, 250, and then reverse.

The first part of his course teaches you the fundamentals of futures trading, just basically how to read a chart, with the 6 reversal rules, double bottoms, double tops, reverse head and shoulders, head and shoulders. old support = new resistance, old resistance = new support. Also, he will boast to you how in one day how he made 800 points, sitting through 100 point pullbacks!!!!

He will give you some homework so that you can identify these reversals.

Then you move onto module 1 which talks about the 1 minute methodolgy and yesterdays trade.
The 1 minute methodology is based on the Dow Cash which you should base all your decisions on and also you learn about Dow behaviours. His assumption is that the mechanical systems exhibit the same behaviours day after day. The Dow Behaviours are: round numbers, trend points and time. For example, a trend has been going for 1 hour, has covered 100 points and is now at 8400, that's 3 dow behaviours, you should have a minimum of 2, it makes a double bottom, you've got positive divergence, you pull the trade with a tight stop and next you know it, it carries on down 50 more points for another 30 mins.

Stuart covers his back saying the reversals happen in 15/30/45/60/120 minutes increments. Again, another stab in the dark and just too ambiguous.

On the Dow Cash, he uses ADVFN charts which are free, and has bollinger, keltner, macd, and fast stochastic.

Stuart gives each reversal a pretty name, like a DRUP, URUP, UC, RDOWN, or DOWN. These are what he calls mechanical trades.

DRUP = Down trend reversal up
URUP = Uptrend reversal up, happens after a DRUP
UC = uptrend continutation, happens at mid keltner
RDOWN = reversal down, happens after DOWN and at >= mid keltner
DOWN = just a down move at high keltner or above

To continue