Matt Klein Book

I enjoyed reading Matt’s book about trading system cons. The book was a quick read and the examples were enlightning. I will always be suspect of “back testing” claims from now on. Thanks to Matt for sharing his insights. John.

Hi John, I lost the email giving the URL to Matt’s book. Can the URL be posted here. I think the Information tab of C2 should list Matt’s book.

tnx curt

Here is a link to Matt’s book.

free to c2 subscribers

I have not read Matt’s book but then I pretty much gave up reading after my first graduate degree.

When it comes to back testing, it is an important step 1 in a series of steps. Why…because if ya don’t do it ya waste a lot of time on step 4 which is the real time testing. And we all know that time is precious.

The fact is that with modern computer software you can curve fit a system to perfectly trade every high and low on every hourly bar in the ES.

From my point of view …and my beach walking buddy Sam the guy who selects traders for hedge funds …says…you need to have a valid premise for your system and the system needs to be a demonstration or implementation of that theory.

When you develop your system you are using a “sample” of data. You then test it on out of sample data. This is an important step before you do the real time testing.

You have questions, we have answers. You can join us walking on the beach on Saturday mornings in Del Mar…



Well said.

Ron, Do you manage a hedge fund for your buddy Sam? If not, then Why? Maybe I will take you up one of these days on that walk.

Sam and I are beach walking buddies that have know each other for many years. He is a friend who understands what I do and I understand what he does. Neither is after the others edge. Trading is a somewhat lonely world if you work on your own or with a group that is scattered all over the world.

It’s good to have someone that I can talk to that’s smarter than me in many areas of the trading world.


Your response to Paul makes no sense to me. You have said before:

1. Sam selects traders for hedge funds

2. Sam knows your strategy so well, that he could explain it to me better than you could

3. You are a trader, with a secret geometry strategy that is very desirable to the trading world

So Sam’s job is to find great traders. He knows you are a trader and knows all about your strategy. Yet, he doesn’t want to take your strategy and make you both gobs of money trading it for a hedge fund.

He’d rather be your walking buddy on the beach - all because he is not after your edge.

This smells as fishy as the air on one of your Saturday morning ocean walks.

Please help me understand - why doesn’t Sam want your strategy?

Myth Buster

Kindly show me exactly where i said those exact three things.

Quote me exactly.


To answer your question. I do not know if he wants my tech or not. I guess he might as he as asked me for the software I use and I laugh.

The important thing is he is a friend. And we do not try to dig out what each others edge is during our conversations. We discuss trading concepts freely. Sam by the way, no longer works for the firm in the North East hiring managers and has his own accounts. He trades his own money and some for big guys. He is fun to hang with and the women on the beach know and love him.

Do you have friends?


Myth buster

I apologize that I do not yet have the skill set of AHA. He would mail out the script to read to the broker on friday. And they would read it on monday. He turned 5K into 50K in a few months.

Here is the proof:

Can you do that?

I’m not sure that I can.


Myth Buster,

I found a video where I revealed many of the secrets many moons ago, but I guess you don’t read magazines do you?


Ron -

I realize it must be tough for you to remember exactly what you have said, since you use at least three (3) aliases on this site.

Anyhow, here you go:

1. Sam selects traders for hedge funds

“and my beach walking buddy Sam the guy who selects traders for hedge funds” 7/28/10 10:57 “Matt Klein Book” thread

2. Sam knows your strategy so well, that he could explain it to me better than you could

“To give you the detailed answer that you deserve I would need to show you various charts and possibly get my friend Sam to help explain. He can often explain things far more eloquently than I. " 7/2/10 11:02 “Is the performance always this good?” thread

3. You are a trader, with a secret geometry strategy that is very desirable to the trading world

“Many of the the techniques used here are from the Advanced Andrews course …” Your system description

"It was common for him to find that the charts on their desks would have our hidden geometry lines drawn.” website referred to in your system description

OK, so now Sam “trades his own money, and some for big guys” - yet he doesn’t want your strategy.

I still don’t get it, but you imply Sam is a smart guy - maybe he is even smarter than you think.

Ok lets get back to #1, When sam goes off to Stamford he selects mgrs for hedge funds. He has not done that in the last 3 months.

Like I said in #2 I would show you the charts and sam would help to explain things you do not understand. That does not imply that he understands my exact rules. Most questions that folks have are due to a lack of foundation. Sam really understands TA techniques that most traders use and can explain them better than I. Last weekend I asked him for the most important things to use to evaluate a system. When he has questions for me it is often related to my back ground in NLP.

#3 Your conclusion is incorrect once again. My tech is not secret geometry. But hidden geometry. To get a better understanding ask a local free mason to explain it to you.

Yes, Sam is a smart guy and we will be on the beach in Del Mar early saturday morning. I typically park my car in the first stall near the life guards. Across from the Poseidon Restaurant. Why don’t you come and deal with your curiosity.

As for Sam being smarter than I think…I constantly amazed how lots of women jump for joy to see him.

Thanks for clarifying. If your results continue like they have started, Sam must be crazy not to trade your system.

I’d love to walk with you, but I’m on the other coast in Hilton Head. So maybe when you make it out my way we can walk on my beach. Some women still look at me - but they don’t jump for me. And I don’t jump anymore either.

You are definitely one of the more interesting vendors on this site. I think you are a little over the top but so far your results back up your words.

I am semi-old pain in the keister. You are not easily rattled - that to me is a very good thing in a vendor-trader.

I wish you continued good luck.


Wow - this is the first time I have seen Myth Buster (I won’t reveal his other aliases here) give a compliment to a system vendor.

Ron - If that tiger is a live one - and I won’t believe it until you show a past video walking around with it - please get rid of it, we want you, Prussian or not, to have a long successful presence on C2.

Hi Karl -

I hate to disappoint, but I have no other accounts here. But sometimes it does seem like I am fighting the same battle other well known, but now mostly silent, people here have fought.

Myth Buster - sorry if I have mistaken your identity but you just sounded so alike as another - well mostly silent person now. Will the person I am thinking about speak up please. - Karl