UPDATE: New date added:
Friday 18th March in London
There’s been such a huge amount of interest in the PIE trading system this year, with lots of questions being fired about – I thought it might be helpful to run through some of them in an email, so you can have as much information as possible ahead of this important decision.
So, I pinned down Glynn Calvert of PIE Trading last week, and put to him some of the most common queries that we’ve had.
First off, many thanks, Glynn, for taking the time to sit down with us to run through these questions.
GLYNN: Thanks Mark, I’m very pleased to be able to help. And please, if there’s anything that’s not covered here, I’m happy to run through any queries – just call me on 07905 906399, or you can send me an email via Thames Publishing at: firstname.lastname@example.org
Q: Number one question from Trader’s Bulletin readers gets straight to the nitty-gritty … Does this system actually work, and just what sort of returns can I expect from PIE Trading?
GLYNN: It definitely does work, and our many, many happy clients are testament to that. The returns you can expect from PIE are between 12 and 30 per cent a year, depending on volatility – this equates to 1 to 2.5 per cent a month. Spread betting returns can be a little higher in certain circumstances.
Q: Why do some people get different returns to others?
This depends on how strong volatility is at the time you place your trade – higher volatility affects the price of an option, which – in turn – affects our individual returns. Also, different clients may choose to take safer, lower risk positions, or higher risk positions in search of greater returns.
Q: How much money do I need to start using PIE?
GLYNN: It’s important to have enough capital to cover your PIE positions without overstretching yourself financially. For that reason, we recommend a minimum fund of £4,000 for spread betting or around £6,500 for DMA.
Q: We’ve heard that it’s possible to trade PIE either via direct market access or via spread betting. What are the key differences between the two approaches?
GLYNN: When you deal DMA (direct market access), you’re seeing the price that the banks and institutions offer. However, with spread betting, the broker will adjust the prices to take into account their spread.
Also, with DMA, when you enter the market, you’ll get the money into you account immediately. If you’re spread betting, you’ll have to wait until the expiry of that contract, which means that your P&L will fluctuate.
Spread betting has the benefit of being tax free in the UK. However, it’s worth remembering that (with current UK tax laws) you have around £11k capital gains tax-free allowance, so (depending on the level you’re trading at) you may not have a tax liability anyway.
Q: How much time does it take to manage the trades?
GLYNN: It really does only take 10 minutes a month to manage your PIE trades. You may well want to watch the market over the course of the month to see how your trades are doing, but this isn’t necessary for the working of the strategy.
Q: How long will it take me to get the hang of this?
GLYNN: You will be practice trading in the afternoon of the day of your course, so should be confident to get started by the end of the day’s course. And if you have any questions when you get home and start trading, just drop Paul or myself an email – we’re very happy to help.
Q: What kind of ongoing support do you offer?
GLYNN: Ongoing email support is unlimited and free of charge.
Q: Is it straight forward to execute? Or are the trade rules open to interpretation?
GLYNN: It’s very simple to follow, with little scope for interpretation. We give you the strategy with recommendations for a risk profile to follow, depending on your appetite for larger gains/smaller risks. Most people stick to these recommendations.
Q: How long have you and Paul been trading PIE?
GLYNN: 4 years.
Q: How do you quantify the risks you’re taking on PIE?
GLYNN: 30 years of research have gone into developing the PIE rules. As long as you stick to the rules, there would never have been a drawdown in that period.
Q: What about black swan events? How does PIE handle these?
GLYNN: PIE is non-directional trading – which means that it doesn’t rely on the market moving in a chosen direction to make profits. Instead, we adjust to the market movements. In this way, we’ve handled unexpected market conditions without problems.
To give you an example, in August 2011, the FTSE fell by 1,200 – by moving with the market, the PIE strategy still made a profit.
Q: What if I come to the course but feel it’s not right for me?
GLYNN: We offer a full refund up to the first coffee break on our day course.
Q: I can’t make the next course date on 17th March. Is there another way for me to learn PIE from home?
GLYNN: Yes, we do supply the two training manuals for home study and give the same free, unlimited email support. We also suggest you use a free demo account alongside the home-study programme while you’re getting to grips with the techniques.
We also have a new date for our next course: 14th April in Sheffield.
UPDATE: Glynn & Paul have just added another date for next week: Friday 18th March
Thanks again to Glynn for taking the time to run through these queries. I’ll stress again what he mentioned above – any questions not covered here, please drop Glynn a line on 07905 906399, or you can email him via Thames Publishing on email@example.com
Likewise, if you have any questions about my experiences with PIE, you can find lots of details on my review page, or just send me an email.
Reminder: I’m putting together a private report on my PIE trading methods using spread betting – this will be available to any PIE clients who have come via the Trader’s Bulletin recommendation. (For reasons of confidentiality, I can’t share my report with you until after you’ve attended the course, but just drop me a line after your course if you’d like to find out more.)
And finally: Just to confirm the latest course dates:
Thursday 17th March – London
Friday 18th March – London
Thursday 14th April – Sheffield
Click through here for course registration (don’t forget to mention that you’ve come from Trader’s Bulletin)