FREQUENTLY ASKED QUESTIONS

1) What is Reverse Motion?

RM is a fully-automated trading system that is designed specifically for today's top trading platforms. The system scalps the E-Mini S&P 500 Futures contract with the goal of taking $1000 in profit each day. The Base system is re-programmed each day prior to session Open to take advantage of the most current market information available. The system then trades with a goal of taking $1000 in profits each day. If at any time daily losses reach $500 the system will close out all positions and stop trading for the day. 

3) What is the minimum amount of money required to trade the RM strategy?
A minimum of $5,000 is required to start trading RM and to open a futures trading account with Tradestation and MF Global. The RM strategy is programmed to initialize trading with a 2 Lot entry and then trade a 1 Lot thereafter regardless of account size. We leave it up to the investor to decide on initial funding to begin trading the system in his/her futures account.

4) Do you recommend opening a futures account to trade the RM system with more than the $5,000 minimum requirement?
Yes, we recommend opening with $10,000. Based on past performance, with a 10k beginning balance an investor will likely cushion a potential drawdown and also avoid having trades interrupted by his/her broker to meet a margin call. Past performance is not indicative of future results.

5) Does RM utilize a stop-loss?
Yes. A pre-set Kill Switch system is triggered with a Stop-Loss at $500 should the market hit the Stop-Loss marker first. 

6) How do I get billed for the RM system? Can I cancel at any time?
The RM system is billed monthly on a credit card until you decide to cancel. There is no long-term contract. 

7) What is a fully-automated trading system?
For Tradestation users, the RM system is designed to run with no manual input required. In the software package there is a box to check that will set the program to automatic. This means all trades will be executed according to the strategy without you having to approve each trade. You can uncheck the box at any time and stop the system from trading. By unchecking the box you can also view the system live in real-time on your screen without having to actually trade the system. As long as your computer is connected online and logged in to the Tradestation trading platform you will never need to manually adjust any settings and the system will continue to run automatically every trading day.

8) How many lots does the strategy trade? Can I modify this?                                                                                      The strategy trades 2 Lots for the first trade of the day and then trades in 1 Lot increments for the remainder of the day. Tradestation users can adjust these variables and modify the program to meet their needs. The system is unlocked. MF Global users will not be able to modify the default program, however they will be able to increase the number of lots traded based on margin requirements.

9) If I want to increase the number of lots traded, will my subscription fee increase?                                                          No. The $425 monthly charge for subscription allows Tradestation and MF Global users to trade an UNLIMITED AMOUNT OF LOTS. For Tradestation users see System Features on the License Agreement page which is found on the Order Form (See Article 6). 

10) Will I be able to withdraw funds from my trading account once I am set up to trade the RM system?
Yes. You can quickly withdraw or add funds to your futures account at any time by contacting your broker at Tradestation or MF Global.

11) Once I subscribe how long will it take to start trading my new account?
When you subscribe to RM you are immediately given the contact information of a representative at Tradestation and MF Global who is familiar with the RM system to help you through the set-up process. In fact once you click the SUBMIT button at the bottom of the Order Page to place your order, the submission form automatically sends an e-mail to your inbox within seconds detailing the contact information for the representative at Tradestation and MF Global. You will need to personally contact the representative of your choice in order to set up your new futures account. Generally the time required to be fully operational is between 2-4 business days.

12) Is the system available worldwide?
Yes. Even though the trading platforms are headquartered in the US, RM is available to users worldwide.

13) Why is a $250 Licensing Fee charged upon subscription to use the RM system? 
This fee includes licensing rights for all customers and live support for any technical matters that may need assistance for Tradestation clients.

14) Will the system need to be reprogrammed as contracts expire?
Yes. All active subscribers to Tradestation will receive a customized version of the RM system every month in their email box before the 1st day of the month. 

15) How many trades does RM make per month?
Though each month varies, on average the RM system makes between 30 and 80 trades per month depending on market activity.

16) How do you calculate weekly returns posted on the Current Year Results page?
Reverse Motion is a Tradestation based system. There is an icon atop the Tradestation platform called Strategy Performance Report. By simply clicking this icon all the data can be extracted from Tradestation regarding the RM system for the last 30 days including Time and Sales, P&L for each trade in real-time and final daily net returns. After close of Friday's session we calculate the profit or loss for each day factoring in Tradestation commissions for each trade and then we calculate the net results which are then posted on the RM website. In addition, every month after the 1st of the month we subtract the Reverse Motion monthly subscription fee of $425 from the year's total net return.