Follow The Money on the owners
I know Keystone Trading Group pretty well. They have a very large email list, consistent "releases" of new prop trader programs, and high claims of being a prestigious, profitable firm. They use top-down, sector-based, trend-following technical analysis of tier 1 securities. Their primary setup is entry into consolidation after a trending move.
All well and good. They are profitable, and their programs are not outrageously expensive. My only question is- How much money are the owners making from education? Do your own math. Say that X amount of people per month sign up for Y prop trader program at $3,000ish. Multiply $3000 by the number of students per month. Multiply by 12. Add in all the other educational programs, as well as chatroom and product sales. Now subtract realistic administration and facilities costs. What's left? How much money are the owners making a year?
Now remember that this figure is strictly risk-free education revenue. There's your profit figure. Now subtract a maximum of $100 per student, multiplied by a 3-day max streak of stop-out days ($300), multiplied by a 3-week max streak of stop-out days ( =$900) before Keystone just fires the student and tells them to go home. So, max risk on every student is $900- the absolute maximum risk. Most students lose less, some are profitable, and a few make thousands of percent returns on their tuition payment in profit. So, let's say that average loss per student is $250.
Multiply that loss by total students per year, and subtract that figure from profit. Now add back in 20% of the full-time desk traders' income. Divide the remaining profit among 2-3 owners. I guarantee your profit figure per owner will still be more than you can imagine.
If that's how much they're making per year, risk-free... do they really care about whether their method works?
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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