Al Brooks - Al Crooks, Charlatan

[wrbtrader]

Another danger about Brooks is he denigrates other useful strategies for understandng market context as being non-profitable and distractions, while we don't know that his method is profitable nor can we assume he can fully communicate all he knows about the market so what we can emulate his alleged success. Looking at VIX, TICK, advance-decline, and TRIN, as well as an oscillator on the 1-minute chart are quite useful at times.

You said VIX, TICK, AD, TRIN as weel as an oscillator are quite useful.

1) Have you backtested such to come to that conclusion ?

2) What trading instrument was such tested with ?

3) Why are you attacking someone and then making a strange statement like while we don't know that his method is profitable ? Shouldn't you only attack if you had proof that its not profitable...makes sense or not because the more this continues...it becomes obvious that this is just a personal vendetta that you have against me and Baron (ET owner) is very good at recognizing these types of personal vendetta threads...he closes the threads.

Seriously, you're walking around here saying the method of others (e.g. Al Brooks) may or may not be profitable and yet you're doing exactly the same thing via making statements about VIX, TIC, AD, TRIN and an oscillator without any evidence.

What makes you different ?

I will never understand these types of threads where someone attacks someone else and accuses them of being dangerous, providing no proof and so one while making statements that alternative methods are profitable or useful without the attacker providing any evidence themselves.

Dude, if you don't like the man...just say it and move on. Yet, if you're going to start making statements yourself that implies you're using something else that's "quite useful"...what you ask for proof of Al Brooks...you will need to do the same to prevent looking like a hypocrite.

By the way, there are lots of academic articles with statistics about the VIX, TICK, AD line, TRIN that gives details why they are not useful and other articles that explains with statistics why they are useful. If you manage to read many of them, you'll quickly realize there's many different ways for using each.

You'll also realize the success and failure of using them is dependent upon the abilities of the trader (that's you). My point is that its the same for Al Brooks method. If you fail at using it profitably, its on you. If you succeed, its on you.

One day you may meet someone that provides proof (e.g. statements, real-time trades with duration more than several months regardless if they sold something or not). If that day occurs, what will that say about you when you meet someone that's succeeding when you were not able to do it yourself.

Hopefully that day doesn't arrive for you because its a tough pill to swallow when forced to look at yourself in the mirror because you're not being mentored by Al Brooks...he leaves the most important stuff for you to figure out on your own...many traders are uncomfortable with that. Seriously, you mention some other things are useful...did it cross your thoughts to merge what you consider to be useful with Al Brooks method...maybe there's synergy there with them merged together ?

Note: I'm thinking outside the box.

P.S. These types of threads usually get started after a difficult duration in market conditions. We just had one the last few weeks of August involving China. I hope you did ok in your trading because many are hurting financially and mentally.

 

[Q3D]

I said they're useful. I didn't say they're profitable. Oh, the futures market we're discussing is the S&P 500 E-mini Futures market.

You are absolutely correct about the difficult market conditions, which is the danger marketing folks like Brooks overlook in their pitch to the public. Brooks does not properly address risk management and position sizing of contracts per risk capital. He also says volume is a distraction and not to base trades off of that. Yet I have seen him refer to specific volume levels with interest in several webinars, seems like he's trying to package the 5-minute bar as the holy grail while ignoring other stuff he was raised on/and refers to as a trader.

 

[marketsurfer]

Because plenty of people have become successful by learning from his principles and methods.

Well, can you name one with a real name and contact information?

Thanks

 

[wrbtrader]

I said they're useful. I didn't say they're profitable. Oh, the futures market we're discussing is the S&P 500 E-mini Futures market.

You are absolutely correct about the difficult market conditions, which is the danger marketing folks like Brooks overlook in their pitch to the public. Brooks does not properly address risk management and position sizing of contracts per risk capital. He also says volume is a distraction and not to base trades off of that. Yet I have seen him refer to specific volume levels with interest in several webinars, seems like he's trying to package the 5-minute bar as the holy grail while ignoring other stuff he was raised on/and refers to as a trader.

Well...guess what ?

There are academic articles with statistics that shows they are profitable and other articles that show they are not profitable. Yet, I'm not exactly sure about your use of the word "useful".

Seriously, what if I said or everybody else shows up to say that Al Brooks method is useful ?

My personal opinion about the S&P 5000 Emini ES futures. Its not a market for the newbie. Emini ES is one of the most difficult trading instruments to trade profitably, mainly because of the heavy institutional involvment, spread traders, exchange seat scalpers and many other reasons.

Simply, its a trading instrument for professional traders only or very advance retail traders...this is my personal opinion. If Al Brooks doesn't mention such in the beginning as a disclaimer or doesn't discuss such if/when asked...that's a problem and should be on his correction list for the next updates.

Personally, risk management and position size is dependent upon the trader. For a trader that needs that info, its your responsibility to discuss that personally with him after you've revealed to him your goals, capital, prior understanding and use of risk management / position sizing. Without the discussion, he cannot make a blanket statement that fits all because risk management or position sizing is depending upon many other factors that's appropriate for one trader and not appropriate for another trader.

So far, many of the things you've mentioned, its your responsibility to figure them out on your own or at least have a personal one on one conversation with him about such after revealing to him info he would need to give you a proper answer instead of a blanket statement that's not suitable for you. That too is your responsibility...personal conversation unless you think he can read your mind on the internet.

 

[Q3D]

Well...guess what ?

There are academic articles with statistics that shows they are profitable and other articles that show they are not profitable. Yet, I'm not exactly sure about your use of the word "useful".

Seriously, what if I said or everybody else shows up to say that Al Brooks method is useful ?

My personal opinion about the S&P 5000 Emini ES futures. Its not a market for the newbie. Emini ES is one of the most difficult trading instruments to trade profitably, mainly because of the heavy institutional involvment, spread traders, exchange seat scalpers and many other reasons.

Simply, its a trading instrument for professional traders only or very advance retail traders...this is my personal opinion. If Al Brooks doesn't mention such in the beginning as a disclaimer or doesn't discuss such if/when asked...that's a problem and should be on his correction list for the next updates.

Personally, risk management and position size is dependent upon the trader. For a trader that needs that info, its your responsibility to discuss that personally with him after you've revealed to him your goals, capital, prior understanding and use of risk management / position sizing. Without the discussion, he cannot make a blanket statement that fits all because risk management or position sizing is depending upon many other factors that's appropriate for one trader and not appropriate for another trader.

So far, many of the things you've mentioned, its your responsibility to figure them out on your own or at least have a personal one on one conversation with him about such after revealing to him info he would need to give you a proper answer instead of a blanket statement that's not suitable for you. That too is your responsibility...personal conversation unless you think he can read your mind on the internet.

He had plenty of opportunities to address position sizing per capital in his books. He instead decided to focus on some abstract concept, the math of the market, where you have to risk less than your gain on each trade for it to be a mathematically sound strategy, that doesn't apply as rigidly as he suggests because each trade should have a varied risk:reward based on the setup.

Later in the books Brooks writes about getting your trading up to the point of trading over a hundred contracts off the 5-minute bar charts. I don't remember reading anything about how much liquid capital one should have per contract or whether an exchange seat would be necessary to do that profitably. Why? Because that stuff doesn't sell.

 

[mangolassi]

Well, can you name one with a real name and contact information?

Thanks

I can tell you 100% for sure that my trading went from losing/break-even to profitable (though I am still trading small). There are people on bigmiketrading that use Al Brooks and Mack's price action principles to trade the futures markets every day successfully. Just open your eyes and put some effort into your miserable life.

 

[marketsurfer]

I can tell you 100% for sure that my trading went from losing/break-even to profitable (though I am still trading small). There are people on bigmiketrading that use Al Brooks and Mack's price action principles to trade the futures markets every day successfully. Just open your eyes and put some effort into your miserable life.

What's your name and contact information? Remember, i'm a journalist and this may make a good article if u can back up your words. can you??

surf

 

[wrbtrader]

He had plenty of opportunities to address position sizing per capital in his books. He instead decided to focus on some abstract concept, the math of the market, where you have to risk less than your gain on each trade for it to be a mathematically sound strategy, that doesn't apply as rigidly as he suggests because each trade should have a varied risk:reward based on the setup.

Later in the books Brooks writes about getting your trading up to the point of trading over a hundred contracts off the 5-minute bar charts. I don't remember reading anything about how much liquid capital one should have per contract or whether an exchange seat would be necessary to do that profitably. Why? Because that stuff doesn't sell.

Risk management and position size is a personal issue. Every trader has a different account (capital) size, different broker (leverage, margin requirements), psychological barriers when changing size, different goals (rewards) and so on. Every trading day is not the same...that complicates it further because than there's a need for discussion when the risks changes due to changing market conditions.

At best Al Brook can do is make blanket statements but its still your responsibility to have a conversation with him that's specific about your account size, broker, goals and so one. A conversation with info that will not be appropriate for another trader because that other trader has a different account size, different broker, different goals and understanding of risk.

Yes, I am in agreement with you about one thing. If Al Brooks told you how much capital you really do need to trade the Emini ES futures within appropriate risk parameters and explained to you when you should be changing your position size...he'll get less business because most retail traders will realize they don't qualify to be trading.

Guess what, brokers do it too. They offer up the S&P 500 Emini ES futures per $400 - $800 bucks with a minimum of 5k account...a few brokers even try to look as if they're serious about risk by requiring 10k minimum deposit and giving you a questionnaire about your experience level.

Seriously, how insane is that for risk parameters. It gets more crazy. Look at every data provider (e.g. eSignal, TradeStation and many others)...they allow traders to subscribe to their services without validating if the trader understands risk management or position size. There's no mentioning of such with any details at their website except for a warning in their disclaimer statement at the bottom of their website.

What if they all (brokers, data providers, vendors and other trading resources) made you take a class about risk parameter / position sizing, take an exam at the end of the course and then you need to verified you have enough capital and then they would input something to prevent your ability to place a single trade to prevent you from trading whenever you try to initiate a trade that violates those parameters. Heck, what if your broker, data provider, vendor and other trading resources had the power of attorney to close out your trades when you violate such parameters...

Would you still be able to trader or interested in trading while knowing some big brother like figure has taken away your freedom ? .

My point...silly to point the finger at Al Brooks when everybody else does the same. Thus, if you're going to start pointing fingers...you need to spread the blame around equally to every trading resource that you're using because they all do it.

Seriously, who is your broker, data provider and please name any other trading resources you're using ?

I am willing to bet that you will not respond to the above question because you know I will go to their website to see if there's any specific information about risk management or position sizing beyond any standard disclaimer statement. If you do respond, you won't name the resources you use that allows you to trade.

Think about it carefully. If you only have a 5k account, you decide to trade Emini ES futures...who fault is that ? Its your fault...not Al Brooks, not eSignal, not your broker, not CNBC, not Yahoo Finance, not the company that built your computer and not any relative or friend that knows your trying to trade for a profit.

Something else to think about. If you knew the discussion in his book or webinar or whatever lacked information about proper risk management or position sizing...

You were smart not to put on a single trade until you got that information from another resource...correct...or did you decide to do what most newbies do...start trading and you'll just figure it out on your own while trading ?

P.S. I wrote in another thread here at ET to explain why trading resources (e.g. brokers, data, vendors and many other trading resources) do not discuss risk management or position size for each specific customer so that its tailor specific for that customer...

Realistically, it will kill their business model, they open themselves up for lawsuits because the info was tailor specific for that trader and it didn't work...that's why they don't do it. They are not financial advisors and at last I check...Mr. Brooks is not a financial advisor nor does he offer such a service.

Its all very seductive. Its like meeting that hot girl and you've been dating a few months and one day she takes her clothes off and spreads her legs...the odds of you using a condom is LOW just like the odds of you ensuring you have the correct info about risk management / position sizing that's tailor to your needs.

 

[Q3D]

Risk management and position size is a personal issue. Every trader has a different account (capital) size, different broker (leverage, margin requirements), psychological barriers when changing size, different goals (rewards) and so on. Every trading day is not the same...that complicates it further because than there's a need for discussion when the risks changes due to changing market conditions.

At best Al Brook can do is make blanket statements but its still your responsibility to have a conversation with him that's specific about your account size, broker, goals and so one. A conversation with info that will not be appropriate for another trader because that other trader has a different account size, different broker, different goals and understanding of risk.

Yes, I am in agreement with you about one thing. If Al Brooks told you how much capital you really do need to trade the Emini ES futures within appropriate risk parameters and explained to you when you should be changing your position size...he'll get less business because most retail traders will realize they don't qualify to be trading.

Guess what, brokers do it too. They offer up the S&P 500 Emini ES futures per $400 - $800 bucks with a minimum of 5k account...a few brokers even try to look as if they're serious about risk by requiring 10k minimum deposit and giving you a questionnaire about your experience level.

Seriously, how insane is that for risk parameters. It gets more crazy. Look at every data provider (e.g. eSignal, TradeStation and many others)...they allow traders to subscribe to their services without validating if the trader understands risk management or position size. There's no mentioning of such with any details at their website except for a warning in their disclaimer statement at the bottom of their website.

What if they all (brokers, data providers, vendors and other trading resources) made you take a class about risk parameter / position sizing, take an exam at the end of the course and then you need to verified you have enough capital and then they would input something to prevent your ability to place a single trade to prevent you from trading whenever you try to initiate a trade that violates those parameters. Heck, what if your broker, data provider, vendor and other trading resources had the power of attorney to close out your trades when you violate such parameters...

Would you still be able to trader or interested in trading while knowing some big brother like figure has taken away your freedom ? .

My point...silly to point the finger at Al Brooks when everybody else does the same. Thus, if you're going to start pointing fingers...you need to spread the blame around equally to every trading resource that you're using because they all do it.

Seriously, who is your broker, data provider and please name any other trading resources you're using ?

I am willing to bet that you will not respond to the above question because you know I will go to their website to see if there's any specific information about risk management or position sizing beyond any standard disclaimer statement. If you do respond, you won't name the resources you use that allows you to trade.

Think about it carefully. If you only have a 5k account, you decide to trade Emini ES futures...who fault is that ? Its your fault...not Al Brooks, not eSignal, not your broker, not CNBC, not Yahoo Finance, not the company that built your computer and not any relative or friend that knows your trying to trade for a profit.

Something else to think about. If you knew the discussion in his book or webinar or whatever lacked information about proper risk management or position sizing...

You were smart not to put on a single trade until you got that information from another resource...correct...or did you decide to do what most newbies do...start trading and you'll just figure it out on your own while trading ?

P.S. I wrote in another thread here at ET to explain why trading resources (e.g. brokers, data, vendors and many other trading resources) do not discuss risk management or position size for each specific customer so that its tailor specific for that customer...

Realistically, it will kill their business model, they open themselves up for lawsuits because the info was tailor specific for that trader and it didn't work...that's why they don't do it. They are not financial advisors and at last I check...Mr. Brooks is not a financial advisor nor does he offer such a service.

Its all very seductive. Its like meeting that hot girl and you've been dating a few months and one day she takes her clothes off and spreads her legs...the odds of you using a condom is LOW just like the odds of you ensuring you have the correct info about risk management / position sizing that's tailor to your needs.

It's not the duped's fault. It's the dupers fault. Thank you for admitting that Dr. Brooks MD does not operate at any ethical level above the very low one in this corrupt business, which is industry standard.

You have some antiquated 20th and pre-20th century notion of personal responsibility that current legal, ethical, philosophical, and scientific understandings are not in agreement with.

 

[Visaria]

I have come to the conclusion, over several years, that Al Brooks is one of the biggest frauds in the trading industry.

You haven't provided any evidence of fraud. You keep making accusations without anything to back them up. I truly hope Al brooks sees your allegation, finds your real identity and sues your arse for defamation.