FREQUENTLY ASKED QUESTIONS
Every week we get calls from all over the world about W. D. Gann, the nature of his mysterious methods, and our W. D. Gann material. Many have studied “Gann” for years and have not found the answers. That can be a long, frustrating journey. Others have paid a great deal of money seeking Gann’s mysterious trading truths, only to come up empty. Still others are weighing the time and uncertainty of searching for these truths on their own against the higher cost of a real W. D. Gann course. And then there are those who have looked into the whole Gann tunnel and concluded that W. D. Gann was a fraud.
Following are the answers to some of the most frequently asked questions we get about W. D. Gann, his trading system and methods, and our “MAGIC IN THE MARKETS” Course. As this entire website is designed to save us time on the phone, the detailed answers below should clear up a lot of the questions you have before calling us.
WHAT ARE THE PRE-REQUISITES FOR THE W.D GANN: MAGIC IN THE MARKETS COURSE?
(Or, “How can I prepare for the course?”) Recipients of the W. D. Gann “MAGIC IN THE MARKETS” course have been diverse. Some of the largest traders from the world’s largest financial houses, prop traders, large portfolio traders, professional analysts, private retail traders, retirees trading their 401k, and a few people who haven’t begun to trade but are lifelong students of esoteric material. All these and more have represented those who have been blessed by the course.
First, this answer is for those who have studied something called “Gann,” but are not active, consistent analysts or traders. Those that are able to immediately apply the concepts in the “Magic” Course to the financial markets are analysts or traders who already have a consistent approach to the markets and are frequently “pushing the button.” W. D. Gann was an active trader who was consistent in the markets and timeframes that he traded in. “Magic” is designed to give consistent market participants the edges W. D. Gann realized by using data external to the financial markets. Attendees of the course should have a basic knowledge of the financial markets before taking the course. Tinkering around with Gann’s public examples of angles and square of 9 will not really prepare you for the methods of Gann that we have decoded from his writings- and may even throw you off. Trying to learn how to approach the financial markets AND learn the correlation of Gann’s esoteric variables to financial markets at the same time can be overwhelming. The easiest and quickest way to begin applying these techniques is to take one or two of Gann’s systems or techniques and synthesize it into your existing trading or analysis system.
The good news is that there are no expensive books or prep work that you must undertake. W. D. Gann did not publish anything that would work “out of the box.” All his public material constituted coded reminders to his students and did not reveal his true system. So the best prep is to be familiar with approaches to the market you are interested in. We can recommend some specific books on Gann’s recommended reading list once you have signed up for the course.
Another great way to prepare to prepare for the W. D. Gann “MAGIC IN THE MARKETS” Course is to regularly paper trade. Trading is a bit like combat. You can be taught shooting to a fine art but if you aren’t prepared for the psychological rigor of combat, everything you are taught tends to go out the window in a fire-fight situation. Applying esoteric data to financial markets may be challenging enough. Having to learn the psychological realities of trading at the same time will simply be overwhelming. That’s why we recommend that if you intend to trade with the methods of W. D. Gann, you already have experience at least paper trading before you take the course.
The next answer is for those who have studied something called “Gann” before. Most likely the true methods of W. D. Gann will be a new paradigm to even those that have “studied W. D. Gann’s concepts” for years. We have had a number of people approach the seminar with a background in “broken Gann.” They took other courses (and paid dearly for it) in what Gann displayed of his concepts publicly (not the real use) and made some kind of trading setup out of them using something resembling Gann’s use of the square or angles. Usually they have no concept of systemization, rules, objectivity, or back-testing statistics. Occasionally they are looking for the unicorn of the magic alternating cycle. Many have lost money and have not seen anyone else make money at it. They then try to find the key to make their “broken Gann” work in our material.
Also, we offer preparatory webinars for those who register and give a deposit for the course that will help them before they attend the seminar.
DO YOU GIVE PREDICTIONS, TRADES, OR ENTRIES AND EXITS IN ADVANCE TO THOSE CONSIDERING THE COURSE?
Not anymore. We used to, and even included live trading via Skype to many. It just got to be too much of a pain in the ass for several reasons. Let’s take the subject of trading signals first. To begin with, our legal counsel does not want us to post anything of a predictive nature due to liability concerns. The signals for Gann trades are tied to rules and a system. To communicate all of those is like teaching the course in advance, and most traders are not profitable because they can’t follow rules.
Looking at the example of a polarity-line system on intraday crude for example, the profitability is achieved over each month by trading every day and taking every entry signal in the month. In back-testing this particular system, we can’t find a month going back where it loses money. But some months of the year are frustrating because they are flat. Let’s assume we have five people asking for 1 month’s worth of signals (which again is a pain in the ass) and the month turns flat. Well, based on that I would have a hard time seeing the magic of Gann. But a professional trader seeing that the system has a statistical edge and extremely low drawdown will find it invaluable.
WHY ARE TYOU TEACHING THIS MATERIAL?
People ask this question like we are giving away a winning lottery ticket. W.D. Gann’s system and methods give some very specific information, such as what the trend of the market will be and for how long, exactly where the market will turn, exactly what price runs will end at. But if you are a crappy trader you can have that information and still lose money. In his book “The Truth of the Stock Tape,” Gann analogizes this point to being a chemist. If I don’t know chemistry, someone could hand me scientific documents that contain secrets to make new materials and chemicals that would make the recipient millions. But I can’t apply them because I don’t know chemistry. Gann’s secrets are of enormous value to those are versed and immersed in the field of the financial markets. To those who do not possess this experience, Gann’s system and techniques are not a “winning trade button” for the guy who is in mom’s basement trying to turn his last borrowed $15,000 into $1 million. There is a reason Gann wrote over 10 voluminous, coded books and courses to remind his students about the details of the system. Implementing Gann’s system and techniques can give the trader or analyst an enormous statistical boost, but learning them takes work, practice, and being open to new paradigms. Neither W. D. Gann’s secrets nor this course will make a trader or analyst out of a tinkerer or provide a shortcut in time and work to a “winning trade button.”
DOES THE COURSE INCLUDE THE MAGIC ‘UP/DOWN’ UNICORN CYCLE?
Yes, we teach W. D. Gann’s original alternating cycle generation method and it back-tests extremely well. No, it is not a unicorn. Gann’s original method for projecting intraday, monthly, yearly, and larger cycles like the Robert Gordon 7 Days using the Law of Vibration are included in the course. You can see the examples (many) on our cycles page. No, alternating cycles are not unicorns. Since you would not trade EVERY cycle leg, or turn, and each trader would approach these turns very differently, we cannot offer trading stats on these cycles. But we can statistically test the success of each cycle leg, and thus the whole cycle. Our test is this: the cycle should always alternate up and down. There are no ‘inversions,’ only failures. And for each leg to be a success, the price at the end of the cycle leg has to be lower or higher than the price at the beginning, corresponding to the predicted direction of alternation for that cycle leg. According to that test, our alternating cycles legs and turns experience a failure rate of under 8%. Not to mention that the market often has a significant move in the predicted direction even during many of these ‘failures.’ That being said, please read the following.
This unicorn question and the technique’s misuse seems more prevalent than Gann angles and squares. First, let me point out a couple facts about this “unicorn.” First, W. D. Gann used the term “cycles” many times in his writings when he was describing the Arcana Trend machine as well as fixed cycles. And many references to the Arcana in “Tunnel Thru The Air” are mistaken for the “up and down” cycles working on several time frames. That being said, Gann attributed a relatively small space in his writings to what could be interpreted as “up and down” cycles. In many of his writings these ‘cycles’ just do not exist. Gann certainly did not “push” and review these techniques to his students in the same way as he did the Arcana, Day Divination and Polarity Lines.
Further, on page 36 of his book, “Astro Cycles in Speculative Markets,” Luther Jensen has some important things to say about catching every cycle turn on a daily chart. He advises against such a pursuit due to two important factors. First, the same cycles begin from more than one point in the year, blurring the clarity of trends and turns. Second, these cycles are subject to interference from news. As Jensen was talking about news frequency years ago, this phenomenon must be infinity more profound. Bottom line: You will need more of Gann’s techniques mixed in if you are going to make money from these cycles.
Jensen talks about confusion caused by interference of a plurality of cycles from yearly, monthly, and weekly applications of the same cycle, not to mention different cycles within those multiplicity of timeframes. He concludes by warning that lunations also contribute to market movement on a daily timeframe and bring further consternation to these cycles. We realize many people are introduced to cycles and Gann by methods of hunting for these up and down cycles. But it seems from Gann’s placement of alternating cycles in his literature that he used this technique to confirm other trading signals.
A final word of warning on alternating cycles. We cannot find anyone who is willing to produce a profitable account statement that can be clearly traced back to up/down cycle turns on a daily chart. Yes, we know of Gann practitioners who can produce such a statement but the trades stem from other techniques. This is a red flag. The cycles Gann studied had a finite set of causes. When applying the whole spectrum of these causes, we find some extremely strong and accurate up/down cycle techniques.
DO YOU NEED SPECIAL SOFTWARE?
This is a loaded question, and rests on your definition of “special.” Most of the techniques (with the exception of 1 or 2 intraday techniques) can be done by hand in under 1 minute, or with a hand drawn ephemeris like Gann used. And we actually provide the LOV software on Excel with the course. But you will want to use software to speed up your applications and enable you to trade multiple markets on smaller time frames.
We usually interact with professional traders who build their own trading platforms and spend tens of thousands on software and IT personnel. At minimum, an active trader spends several thousand per year on data and a professional charting/analysis platform. If you believe that a charting program that can measure bars counts on a chart is special, then you will have a problem. We include proprietary software with open code on Excel, Esignal EFS, and Wave59 Qscript.
Many traders who have taken the “Magic” Course have used Wave59 for years, as we do. Optuma has made great advancements in Gann application as well. Wave59 packages 2 to 3 steps of the process so you can focus on applying the technique quickly. This is immensely helpful in the stage where you first learn Gann’s trading techniques and want to hit the ground running.
DO YOU SELL THE MANUAL SEPERATELY OR OFFER THE COURSE ONLINE?
No and no. Each manual is crafted and updated to match each seminar and the analysts or traders in attendance. Each manual is only produced for a specific recipient. You would have to attend the course and see the material to realize that you must be present in person to see how it is applied.
We do not do anything online or make electronic copies of any material due to piracy concerns. This material is far too unique and valuable. Everyone we know who has gone the electronic route has been pirated. The above also applies here: You would not get the same understanding of this material online, as many of the examples in the seminar are demonstrated on recent, live data.
DISCLAIMERFutures, Equities, and Options trading has large potential rewards, but also large potential risk and is not suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to anything shown on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. No one associated with this seminar or Chicagodaytrading.com are Registered Investment Advisors, Commodity Trading Advisors, or certified, registered, affiliated or approved in in any way with either the National Futures Association, Securities and Exchange Commission, Commodities Futures Trading Commission, or any other organization.
The “Magic In The Markets” course exegetes and replicates, as best as possible, the original trading and analysis techniques of the late trader W.D. Gann; and not necessarily the trading methods of the author or presenter of the course. Traders using Gann’s techniques may not be able to duplicate the trading results of W.D. Gann for many reasons, including, but not limited to, skill of the individual trader and the changes in financial markets since Gann traded. Recipients of this course receive hypothetical, back–tested data and not actual trading results. In an attempt to include all the markets and time frames that Gann traded during his lifetime, course includes far more applications to market instruments and time frames than the author or presenter can possibly trade. Course author & presenter has sources of income apart from trading. “Magic in the Markets” contains both Gann’s combinations of trading & analysis techniques and standalone techniques that can be integrated into existing analysis or trading approaches. Hypothetical back–testing of the performance of the function of analysis techniques are displayed pictorially for many markets and time frames on recent market data.
CFTC RULE 4.41
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.