Tsunami Trading Educators

http://www.tsunami-trade.com/

Here comes another system--which costs a whopping $6500--that claims to use no indicators whatsoever, only proprietary charts, to day trade the ES. I swear these sites are multiplying faster than roaches in an old soup can. What is so special about trading on price action? It's been done ever since markets existed but lately has become so new and vogue.

I've taken the free trial a couple of times and I'm not impressed. It obviously is targeting the novice trader who has spent a lot of time and money on other trading tools and still is losing money. Who else but the desperate and/or naive would wire $6500 to someone's bank account who, like most others in this con game business, won't even disclose their name, let alone a phone number. In addition to sending your money in a non-recourse fashion, new members are required to sign an unbelievably one sided disclaimer http://www.tsunami-trade.com/disclaimer.html that doesn't even tell you where this company is located. In addition, a search under "who is" reveals an anonymous front hosting company (Tucows).

In fact, the guy who runs this shop (Blade) is so paranoid and secretive that he doesn't even let other members communicate amongst themselves away from the room. He totally forbids any sharing of emails, IM, or Skype and is lightening quick to erase any such posts. On several occasions I witnessed him bleeping out this type of info AND admonishing the person who posted.

What I found particularly interesting was the use of shills in the room to praise and tout the system to the folks who were in for free trial. This is a variation of the three card monte scam in which the people winning money right and left (in this case alleged "members" who expound the virtues of this system ad nauseum) lure the unsuspecting visitors to get on board. Blade himself is the biggest showman when he makes the right call on a trade, making it seem that the magic secret of interpreting price action through this so-called proprietary system is the answer to your dreams. And indeed, the website has all the bait with pictures of folks living their fantasy lives on some tropical island with a Ferrari in the driveway.

In the two weeks I spent in the room, I calculated a win rate of approximately 59% as defined by a trade making one point before hitting a 1.25 stop. No great shakes. Blade claims the system is "robust" in that it gives many signals during the trading session. (I witnessed 10 calls in one day.) When a trade gets stopped before profit Blade has a litany of excuses that are too long to mention in this thread; suffice it to say as any true conman, he knows how to put a spin on the negatives as if it really wasn't all that bad. For example, the market is "acting violently" and the price action, therefore, can't be properly discerned. Blame it on anything but the system. After a couple of quick stopouts in a row, he takes a break as moderator and the room sits in silence.

Although I'm not privy to his secret system, my observations tell me he uses a short term candlestick chart (10 or 15 minute) calling out buys at obvious support and sells at resistance. Anyone with a rudimentary understanding of technical analysis and chart reading could easily make the same calls. I also believe he uses a modified pivot point for his early morning calls which I did find funny. (f X price is broken, expect to go to Y and if that is broken, the Z and vice versa for the upside).

The free trial is worth the price of admission for entertainment, but not much else.

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Originally posted by ican

oh wow - back to TradeStation - ha - what a laugher - I remember how he was pushing TradeMaven on everyone and that TS would not be supported, not as good, etc. How did he explain the backtracking, no more TradeMaven and going back to TS? I'll bet that was creative! Thanks.

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He claims he has been working for 4 months on the new tradestation software. Stated that Trademaven did not have the capability to program his new indicators. He said the results with his new stuff would be greatly superior.

Well, like all of the changes he has made, it was clear he had not done any live trading with it. He added or subtracted indicators, changed strategy, etc, everyday last week, and still could not generate a profit.

I did not log in the Tsunami room today. Listening to the egotistical Blade all day is just too tough.

But, I did hear from on of the free trialers. Here are some of his comments:

1. Blade called some losers and b/e trades. He played the "ca-ching" sound for himself even on the b/e trades. Guess he doesn't pay commissions?

2. A couple of times he had a good entry, then bailed before making a profit, "because his software told him to". Yet, he still kept crowing about how great his entries were. What good is a system that gets in at the right place, but takes you out without a profit?

3. He announced that all trades would be closed out when they had achieved a 1 pt profit, and the goal for every day is net 2pts/ct.

He finally called some winners, but he kept pointing out that "look, we made 2 pts on that trade, see how easy it is to make 2pts'ct/day". He seemed to forget all his losing and b/e trades, as well as ignoring his own edict to exit at +1.

4. He informed another free trialer that it takes most people about a week to learn the system and be able to trade it independently. He also told him that "all of the members will see the entries exactly the same". Yet, Blade claimed several times that his members made profitable trades that he did not call in advance, or got in at different price than he did because he never got a fill.

5. Blade told one trialer who came in late, that "we make our 2pts/ct" almost everyday. (We know that is a bald faced lie, redioux.) Then he bragged "we called a sell this morning that made 10 pts", even though he bailed at b/e on the entry he was referrring to, and didn't mention the "we are going to exit all trades at +1 today" statement.

6. Blade did a recap of his trades for a late afternoon arrival. He left off at least 1 b/e trade and claimed a win for a trade that would not have filled. But even just the trades he recapped had him down at least a point before commissions on 11 trades.

I find it appalling that this Website accepts google ads from known scamsters such as Tsunami.

thanks for the updates RedSioux - too bad Blade is continuing his scam. I agree with undecided trader if TsunamiTrader has an ad on here it should be deleted, could give mypivots.com a bad rep.

It is a shame that mypivots is allowing tsunami-trade to advertise on their website.

Daytrading can you please explain why?

Ever since undecidedtrader made that comment we have been watching out for any ads from Tsunami Trader but have yet to see one. It would surprise me if Tsunami advertised here considering the comments that traders have been making about them on this forum.

Blade sent out a broadcast email to everybody over the weekend. He proclaimed his new software was a great enhancement that would make everybody a winner of 2pts/ct/day. (Hmm, he used to claim that 4pts/ct/day was very easy to do, now with the new software his goal is 2pts/ct/day. This is an enhancement? Don't improve it any more Blade or your goal is going to be in the minus column!)

I did not bother to go to the room today, but I did get a report from one of the other "wavers". She said his new strategy uses 1.5 stops and 1 pt targets, unless an entry goes for more than a point, in which case he claims to still be in the trade.

He called a short at 9:34 which he said was a winner, EXCEPT no one got filled on the entry, so it was only a winner in his feeble mind. He vaguley refferred to a high risk entry at around 10:00, but did not call it a trade till it went for a point in his direction.

The next trade he bailed at breakeven, and then took a full 1.5 stop on the last trade. So lets give him a hand for consistency, another losing morning.

Meanwhile, SueL continues to post fantastic trade results. Never does she post entries, just great exits. Should we be suspicious?

Thanks RedSioux, I saw Blade's email, hard to believe that guy, I guess he will do anything to keep trying to suck new people in.

re SueL, yes, that is very suspicious about her. She may just be a good trader in her own right and was before Blade came along, at least that is what I heard her say once. I would be very suspicious of anything that comes from Blade. ahk was correct in his first post on this topic.

Just found this:
http://hbe.ehawaii.gov/cogs/details.html?t=MSTR&fn=215134+D1
which says about the company TSUNAMI TRADING EDUCATORS, INC. "This business is not in good standing."

(emphasis mine)

also interesting are all the changes:

Feb 15, 2007 Agent Address Change
Nov 17, 2006 Change of Registered Agent
May 22, 2006 Address Change
May 19, 2006 Agent Address Change
Mar 24, 2006 Articles of Incorporation

Is blade's name John by the way? From what i ve seen, his latest scam is TsuBot, which he claims has an extremely high win rate in all markets. Watching it trade live, it's obvious that reality is much different. Interesting that he only takes into account the first profit target which is no more than eg 3 ES ticks or 5 GBP/USD pips (which is really 2 after spread which he totally ignores, but that should be expected as he has never placed a real trade himself). The corresponding stop loss is several times larger, a sure recipe for disaster. Avoid them at ALL costs no matter how tempted you feel to waste 6-7k