Indicator Warehouse is offering a variety of very interesting and innovative trading products that work exclusively on the Ninja Trader platform. Unfortunately the "Live Trading Room" is not about live trading and more about product showcasing, in short its a daily 90 minute infomercial. Indicator Warehouse is offering a birds nest of trading systems that are not definable and testable trading systems, rather they are a series of trading set-ups. Do the trading set ups actually work? Its hard to tell. The owner and the trading room moderator simply refuse to show even the tiniest morsel of prior trading success. In short, these chef's wont eat their own cooking.
Thanks for reading today’s review of Indicator Warehouse.com
What is IndicatorWarehouse.com? Indicator Warehouse is a suite of trading products that are specifically designed to work with Ninja Trader. The suite of products includes the following stand alone indicators that can be purchased individually: 1-2-3 Wave Counter $397, Alert on Trend Line $297, Auto Trend Line Channel Tool $297, Bollinger Band Suite $297, Elliot Wave Indicator $297, Enhanced Pivot Points $297, MACD Crossover Alerts $297, Moving Average Cross Alerts $297, Overbought-Oversold Suite $297, Time and Sales Transaction Alert $297, Ultimate Moving Average $297, Universal Channels $297, Volume Pressure $77.
In addition to the stand alone indicators that can be purchased individually, there are also a group of separate trading products offered for sale, the developer describes these products as “System Add-ons”. The following is a list and cost for each: Day Ranger $395, Geiger Counter $495, Mean Renko Bars $249, Trade Journal Connector $77, Omni Bar Timer $297, Profit Finder $795, Trade Forecaster $395, Trade Manager $1195, Trail Blazer $795, Ultimate Support and Resistance Suite $595, Universal Dynamic EquiVolume Bars $249.
In addition to the stand alone indicators, and the “system add-ons”, there is also a suite of trading systems that include the following: Falcon Swing Trader, Eagle Trend Trader, and the Hawk Scalper that can be purchased for $2,995. In addition to this trifecta of bird themed trading systems, there is also a “hybrid” trading system named the Raptor Trading System that can be purchased for $1,995.
As you can read, this is quite a collection of trading products! The indicators are 13 in total and if purchased individually would cost a total of $8,108. The stand alone “system add-ons” are 11 in total and purchased individually would cost a total of $5,537. The trading systems are 2 in total and purchased individually would cost a total of $4,990.
A quick search of Archive.Org reveals that IndicatorWarehouse.com came online in late 2009. The owner of the company is named Adam Halpern. The website appears to be a sort of clearing house of many different sorts of indicators and trading systems. In fact, I went back through the monthly logs at Archive.Org and it appears that Adam has been quite a savvy promoter of trading indicators and systems that work specifically on Ninja Trader. I attempted to culminate and curate a final list of all available indicators that Adam has been selling over the years, however its simply too vast and too complex. Many, many of these indicators and trading systems have appeared for a few months and then simply disappeared and been forgotten. It appears that Adam continually is adding and removing indicator inventory as the community of traders react to his offerings. He might have a trading system up and selling for a few months, pull it down and a few days later a new trading system pops into its place. All of this has the feel of a professional retailer that continuously is tweaking his shelf space to optimally sell the most popular items.
I would consider Adam Halpern to be a master marketer. He is very, very savvy. It is interesting to watch his marketing strategy unfold over the years. He is very subtle and very clever and clearly understands the mind of the person that consumes trading products. He very much understands that most traders never stop searching for the “holy grail” of trading products, and that traders will never, ever stop purchasing the latest and the greatest trading indicator.
One of the things that I certainly do admire about Adam is that at no time in the past, or currently, does he make any outlandish promises of profits. You will not find any fraudulent spreadsheets, no claims of making $30,000 per month, no ridiculous nonsense how a person simply buys an indicator and all of his financial problems will quickly disappear.
Does all of this mean that Adam Halpern is not the typical indicator hustler that I write about so often? Yes and No. Adam instead relies on old fashion salesmanship and has simply refused to cross the line into the realm of outrageous. However, in some instances he is quite clever in selling his product by creating a diversion away from fact, read the following snippet that was pulled from his website:
Professional traders use high speed, real-time data, and so should you.
Many “systems” and “signals” are based on historical data, and these other systems come with the U.S. Government mandated warning: “Past performance is not indicative of future performance”.
That’s a less than re-assuring warning. Who wants to deal with old data. With NinjaTrader’s DTS you work with real-time up to the second data.
If you read the above text, what exactly is Adam saying or attempting to do? In short, he is attempting to take the standard boiler plate warning that is required by the CFTC, and twist the warning into a strength by implying that his product is somehow different and the CFTC warning is not applicable. This is manipulative and very clever, it gives insight into the salesmanship of Adam. He is very good. If trading vendors were politicians, then Adam Halpern would be the equivalent of Donald Trump. Truthfully, I sort of like Donald Trump.
The Live Day Trading Room
During the month of December 2015, we recorded approximately 10 hours of of the live day trading room. The live day trading room is moderated by Eric Senft, a registered commodity trading advisor, a quick search of the NFA website reveals that Eric lives in Canada, has no registered complaints and appears to have a pretty clean record. However, a deeper search of his background reveals that he has been selling quite a few different trading products over the years. He appears to be a professional vendor, and not a professional trader.
The live day trading room is not really a live day trading room. During the review, we specifically looked for any definitive and accountable day trading that we could use to populate a spreadsheet, however we found the room to be a bit disjointed and hard to track. Mostly, what we really saw was a sort of live informercial of the Falcon, Eagle, Hawk and Raptor day trading systems.
The Falcon, Eagle, Hawk, and Raptor day trading systems ARE NOT TRADING SYSTEMS. Instead, they are a series of trading set ups (highly interpretive) that a person will see presented upon the trading charts. You cannot simply run a back test and check the statistical viability of this trading approach. A person must simply hope that the set ups do in fact work. We were hoping that the live day trading room would be a means of validation, however Eric quickly moves through the charts and quickly tosses out trade ideas. One of the things that I found really disappointing and irritating is that when Eric would call out a trading signal to go long or short, he always advises the audience that they should “use a stop that matches their individual risk profile”. This is basically just useless gibberish, why? Because what if a person is attempting to use a $50 stop loss, while another uses is $500 stop loss, how can we possibly track the validity of the trading signals that are being displayed on the screen?
I did reach out directly to Eric and Adam. I told them that I was definitely interested in purchasing $5,000 worth of trading systems and indicators, but what I really needed…I need to see if either of these guys have been able to turn a real, verifiable profit from these trading products. Is it really too much to ask to see if either of these guys can trade profitably? Unfortunately, neither could produce any proof that either is making a consistent income from trading. Unequivocally, the answer was NO. When pressed for proof, I was brushed off. The response was from Adam was,
I am not sure Indicator Warehouse is a good match for you. You appear to be looking for an automated trading system. It makes sense to ask for and expect equity curve reports and account statements for a black box system. However our trading tools are just that…tools.
Where the rubber hits the road
The biggest problem that I have with indicator salesman/hustlers is the validation of the product that they are selling. It is easy to become distracted with fancy and exciting names like “Eagle, Hawk, Falcon, Raptor”. We see the well designed graphics and incredibly enticing wording, and admittedly it draws us in. Could this be the answer? Did we finally find the holy grail? However, we have to remain focused on the “WHY”. And the “Why” is does this stand a reasonable chance of making us money? Utimately, the product must be judged on real time performance, as it currently stands there is no proof that any single person has been able to produce consistent profits with these tools.
What I like about Adam Halpern
There are several things that I like about Adam. He is not a cut from the same clothe as so many of the indicator hustlers that I write about. He makes no bold claims or outrageous statements that his indicators can predict the future. Instead, he relies upon good old fashion salesmanship. So many vendors make bold and outrageous proclamations that consistent profits are now at hand. But Adam has chosen to simply take a different route. His route appears to be finding and developing the most interesting tools that he can possibly find within the Ninja community. And once he finds something interesting to sell, he is a master at packaging and presentation. Its a clean approach. He certainly deserves credit for deciding to not be the typical trading scumbag vendor.
So what exactly is Indicator Warehouse?
At the end of the day, Indicator Warehouse is simply selling what everyone else is selling, unproven indicators with an extra helping of marketing panache. If I could come up with only a single analogy in which to draw a comparison, it would be that Adam and Indicator Warehouse is like a candy or ice cream shop full of interesting goodies. All of his indicators are colorful and have interesting names, but we really do not know whether any of this stuff provides us any sustenance.
One of my favorite day trading educators is WatchHimTrade.Com. A nice kid that really does trade. And he really does trade profitably. Every single day, every single trade you can watch him trade with his live trading account. He is a chef that is willing to eat his own cooking. With Adam Halpern and Eric Senft, they are more than willing to serve up some exciting looking dishes, but its upsetting that neither is willing to actually eat their own cooking. If their trading indicators are so great, then why not trade them themselves? It makes perfect sense that if a person truly believes in his trading product, then he would be willing to trade it with his own money. In my gut, it just feels wrong that a trading vendor is willing to sell magic trading indicators, but simply refuses to show any proof whatsoever, from themselves or any active traders, that their product does indeed perform.
Common sense from my nephew
My nephew is a pilot and he flies the big jets all over the world. Nice kid with common sense abound. Over Christmas, we talked about the aviation industry and how every single facet in the design of a flight system must be tested and proven. Before a life is risked by taking to the air, the plane must be proofed and test piloted. The engineers have to thoroughly test the plane in every imaginable situation, and provide a back up. The test pilots then test the theory of the engineers. If everything checks out, then the plane is ready for paying customers. What amazes me is how so many people will simply throw their life savings, hopes and dreams into a magic indicator without doing any sort of testing and proving. Of course, the best proof is when the trading vendor that designs a product is willing to show in real time that his product does indeed perform, but with the guys at Indicator Warehouse, they simply refuse to fly their own plane. Yet, they have no problem letting our test their ideas with our own money. But their money? Not a chance!
My nephew asked me, “how is it possible that people look at these squiggly lines on a screen and simply bet their money without any proof?” My response to him is that he would be amazed that people do in fact spend upwards of hundreds of thousands of dollars in a multitude of trading products…all without any proof of performance. All of this sort of brings a quote to mind by Mark Twain, “It ain’t what you don’t know that gets you into trouble. Its what you know for sure that just ain’t so”. Many people that purchase trading products get sucked into the sales pitch, and they just know for sure that this magic trading indicator is the one that will finally deliver! And so, they gallantly board that indicator airplane (which the guy that built the plane refuses to fly himself) hoping to finally reach that magical destiny. You know that destiny, that magical place where profits jump off the screen and into our trading account. And once those profits start flowing into our trading account, then we can finally tell the bossman that he can take this job and shove it.
Unfortunately, once the person spends his $3,000 and starts eating away at his $15,000 trading account, then he starts to question whether these magic trading indicators really work. Once the trading account balance hits $10k, he starts to get worried but still he soldiers on, hoping things turn around quickly and those profits start rolling in. He starts attending the “Live Trading Room” that is moderated by Eric. He figures that he will simply copy Eric’s trades and the profits will start cranking. But then he discovers that Eric is really just running a daily infomercial, and that he is not really trading. The account balance is now down to $6k and there is no possible way that the wife can find out about this debacle. You promised her that these magic indicators would be the last that would ever be needed, but it appears that something is quite wrong. What is wrong? Quite simply, the person that purchased the magic trading indicators never took the time to “proof the concept”.
The solution is simple. Stop purchasing magic trading indicators, unless the person selling the magic trading indicators is able to irrevocably demonstrate that the magic trading indicators can make money in real time.
Wrapping Things Up
I have a few trading educators that I like. The best are the ones that demonstrate will real money. One of my favorites is that young puppy at WatchHimTrade. A young kid that demonstrates his skill on a daily basis. Does he use any magic trading indicators? No. In fact, I have been watching him trade for a few months and he keeps things so simple and his approach so basic, that I almost feel sorry that I ever felt that over-complication was somehow congruent to trading success. This is an important lesson for anyone looking to purchase a trading product…stop wasting time, effort and treasure on trading products where the vendor flat refuses to prove that their trading products actually work.
Well that’s it for today. Thanks for reading. Don’t forget to leave your comments below.
One last thing…Adam Halpern, when you read this, you are going to probably be pissed off about this review. Truth be told, I really admire your marketing efforts. You manage to sell a lot of product on nearly zero proof of concept. While your competition has gotten dirty, you have kept things really clean. Congratulations. However, the one thing that your product really needs is someone, anyone to trade it live and trade it daily. Once that happens, then I will be back to hopefully write a more positive review.