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  • Can you provide specific investment or trade advice for me?
    No. We are not a Registered Investment Advisor (RIA), and all the information we provide in for informational purposes only. Clients that choose to join our services and follow the information we provide do so on their own. We advise that clients and potential clients consult with an RIA prior to joining our services and risking any capital.
  • Do you have possession of client funds?
    No, our clients maintain full possession of their own funds in their brokerage account. However, with auto trade our clients can 'follow' our trades to the tee and even scale up larger in size if they choose to do so.
  • What is a "Risk Budget"?
    This is simply the amount of loss or drawdown that a client defines when they start trading a strategy that allows them to define a set risk amount they are willing to take on in order to achieve the returns they desire, generally on an annual basis. An example of this would be a client is seeking to make $50,000 a year in gains, they may choose a $20,000 Risk Budget to achieve this. While it is not required, we encourage our clients, and all traders and investors for that matter, to define their own risk at the outset of committing any capital to a strategy or investment endeavor. Just don't lie to yourself....
  • Are stop losses used on trades?
    Generally, no. The reason for this is simple - we mostly trade front-week options that have 5 days or less until expiration. Due to the rapid movements that can occur with this (both up and down) on even a modest move on the underlying stock or index, stop losses are no good on these types of trades. The concept around this is simple. If one wanted to take a $2,000 position on a trade with a 50% stop, instead take a $1,000 position. The risk is still clearly defined and allows the trade to 'breathe' with the market movements. It is not uncommon to see an options trade down 50-60% on the first day of the trade, only to come back and do 100% plus return, sometimes much more.
  • Does Ambitus Capital take a trade for every signal they issue?
    In short - No. This is covered in our legal terms. The reason for this is we have over a dozen systems/strategies that have been developed and are viable for trading - not all of which are deployed for public use (this website). At times, and depending on what other positions we have open, we may opt to take the signals issued or not. Or even take them in a different context or trade structure overall.
  • What account size is needed to trade a strategy?
    This is a common question, but has a simple answer. It is really up to the client to determine this, but in most cases an account of OVER $10,000 is needed to properly execute all of the trades for a strategy at any given time. With that said, some clients have started with an account value of $5,000 and been able to successfully patriciate in a strategy we offer.
  • How are fees calculated?
    We use a proprietary method of calculation for this that is based on the 'Value' a given strategy provides. Clients should keep in mind that fees are sent via invoice on PayPal and not billed automatically. Also, when fees are assessed clients are only required to pay those fees if they wish to continue as a client, making fees 'optional' to pay. However, we have never had an issue with a client not agreeing with a fee or feeling comfortable with the value they received relative to a fee charged.
  • Why are there no set monthly fees? Can I just pay that instead?
    This industry, whether some accept it or not, is changing. While there are some good, profitable and transparent signal services, educators and traditional financial advisers, many are not. Unfortunately, the name of their game is to simply make bold promises to the masses, collect the '$199" a month (regardless of performance) and continually turn over new clients on a large scale. This may sound disparaging to others, but it is not. As stated, there are some honorable and highly skilled traders within this space who truly do want to help people AND make money doing so. The two are not exclusive to one another. However, our stance is to screen clients upfront who have clearly defined goals. See if those goals align with what we offer. Deliver value based on client goals. Get compensated for doing so. It's rather simple, but unfortunately rare. It's because of this that we prefer a small client base. While our fees may be higher than what is 'typical', they are only after value is delivered and even then the clients can refuse to pay if for some reason they don't agree with the fee (this has never happened).
  • How are fees paid?
    Fees are invoiced (via Paypal) and clients can pay them with one of the following methods: - Debit/Credit Card - PayPal Account - Zelle - Wire or ACH transfer if they choose this option
  • Are fees that I pay tax deductible
    In some cases, yes, they MAY be. They can be counted as an investment expense, depending on how your accounts are structured. However, clients should consult with their tax advisor about this. This article may be helpful:
  • Why does Trade Sphere publish the max value of each signal result versus trade result?
    The reason for this is this strategy is solely designed for clients of this to trade the signals on their own. While we publish the price at entry, and give ideas for when to take profits, usually at incremental points on signals, it is ultimately up to each client to manage their own trades in accordance with their own goals and risk. Typically using our guidance or some basic profit taking rules, over time one can expect to capture 40-50% of the max returns shown, possibly better for some more savvy and experienced traders. The purpose of this strategy is to provide a relatively low cost method to gain access to our signals for clients who do not want to auto trade and pay a set fee for access to the signals.
  • What is Profit Factor?
    Profit Factor is simply the sum of all wins divided by the sum of all losses. A value of less than 1.0 means the system or strategy is not profitable. Anything 1.1 or greater means it is. Ideally a system has a Profit Factor of 2.0 or greater. The higher this number, the better. Profit Factor allows for traders and potential investors of a strategy or system to assess the quality of it without solely looking at win rate % - a metric which can be deceiving. While on the surface win rate % does matter, a system with a win rate of a mere 50% but a profit factor of 3.0 is far better than a system with a win rate of 70% and a profit factor of 1.8. Other key metrics to consider are the return of system versus the maximum drawdown. Ideally, at least by our standards, a system has a return in capital that is > 5 times that of the maximum drawdown each year. A system that is cooking will have a return > 10 times that of the max drawdown for a given or each year. Be wary of 'newsletters' or 'signal services' that do not publish results at all or only tout winners. Wins and losses should be readily available for viewing and for one to assess before they commit any risk capital.
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