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Trading Concepts, Inc.

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Table of Contents
Chapter 1: The Hidden Quant ............................................................................................ 3
Chapter 2: The Plunge Protection Secret ........................................................................ 18
Chapter 3: The Forbidden Numbers ................................................................................ 34

U.S. Government Required Disclaimer - Forex, futures, stock, and options trading is not
appropriate for everyone. There is a substantial risk of loss associated with trading these
markets. Losses can and will occur. No system or methodology has ever been developed that
can guarantee profits or ensure freedom from losses. No representation or implication is being
made that using the Trading Concepts methodology or system or the information in this letter
will generate profits or ensure freedom from losses.
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.

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Chapter 1: The Hidden Quant


I bet youve never heard of forbidden numbers. Theyre a financial secret more closely
guarded than Area 51. A handful of digits so important - and so profitable - that the Titans of
Wall Street will pay any price to keep them out of your hands.
Thats what makes this eBook so incredibly dangerous.
Because today Im revealing them to you for free.
The numbers are:
0.95
1.5
And
0.66
Hi, my name is Todd Mitchell, CEO of Trading Concepts
(www.TradingConceptsInc.com). For over 22 years now Ive helped over
13,000 traders master the art of making a living from the markets. Im
proud to have coached everyone from complete beginners to Wall
Street hedge funds.
And Im telling you right now
The forbidden number pattern is unlike anything else Ive ever seen.
I know it wont mean anything to you right now. But if youd known this simple three number
pattern from 2010 to 2016 - youd have earned 260x your money.
Thats enough to turn every $10,000 you invested into a cool $2.6 million!

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Every two weeks, it signals fresh trades on large Blue Chip stocks.
With trades like:
17.3% here

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22% there

Or 11% right here

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All in precisely two weeks!


These trades win 69.8% of the time.
AND
Your winners are typically MUCH bigger than your losers. On average youll make $3.43 for
ever $1 you risk. Or $3,430 from every $1,000.
Now - those 10-20% wins might not seem impressive. Theyre not 10x bagger moon shots
you can brag about the next time youre out drinking with your golf buddies. But when you let
them stack up every 14 days...
They compound to 129.8% - on average - year-over-year!
With returns like that you could potentially turn every $10,000 into $22,980 in the next twelve
months $640,840 in five years and over $41 million in ten. YES - a decade from now
you could retire with a vast fortune, even if your portfolio is tiny today.
How it works in practice is simple
When the forbidden numbers appear - you buy the stocks or options they signal. Two
weeks later, youll sell them again. This lets you get in and out of the market twice a month,
with the reliability and precision of a Swiss watch.
No variable entry, no variable exit date.
No wondering how much to allocate per trade.
You wont even need to do any calculations of your own.
The numbers literally tell you WHAT - WHEN - and HOW MUCH to trade!
Better yet - you can do all that without any crazy leverage - forex - futures - options - or
penny stock risks. You certainly wont be set up for catastrophic losses. In fact - the
forbidden numbers have never lost more than 8% between new account highs.
Over the same time period the S&P 500 has plunged by 9.6%... 11%... and even 16% on
two separate occasions. That makes this strategy safer than investing in the broad market.
Yet if youd invested a mere $10,000 with it in 2010
Youd be a multi-millionaire today!
The bad news is that you didnt make that investment. Back then only one man knew about
the forbidden numbers AND the Hidden Quant wasnt talking.
The good news? History is about to repeat itself

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And this time you can be ready for it!


As you read this educational letter over the next few minutes, youll discover:

Why the most popular technical indicators (including Bollinger Bands and Moving
Averages) may be tricking you into money losing entries and exits.
A set of little known technical indicators that give you the pulse of the market - so
you can predict major price movements with 70%+ accuracy.
AND the truth about the forbidden number pattern - or how THREE little numbers
can deliver potential account growth of up to 27,056%!!!

In a moment Ill share all of that with you - with nothing held back.
But - before I do that, I need to tell you a little story. It took place on Wall Street in the early
1980s, and it stars the most unlikely group of billionaires in financial history. No one saw
them coming - but by the time they were done
Theyd revolutionized the investment game forever.
Im talking about the Quants.
Its okay if youve never heard of them.
Quant is just short for quantitative analyst.
Unlike their colleagues, they didnt study finance. Most of them were math, physics or
computer science professors at Universities like Harvard, Stanford and MIT. For the first time
ever - they applied hard science to the art of picking stocks.
They didnt have the connections or pedigree of the Wall Street old boys.
What they did have was a secret weapon...
A set of powerful math algorithms they used to predict the market. With these tools, the
Quants quietly amassed billions in profit through the 1980s and 1990s. Quant funds like
Renaissance Technologies started from scratch and grew to $65 billion in assets. Academic
Quants like Robert Merton and Myron Scholes even won the Nobel Prize.
But wealth and fame was a double edged sword
Eventually, most of the Quants were unmasked. Their secret profit algorithms were exposed.
All of their black box trading secrets became public knowledge. And - without their unique
edge - most of them lost the ability to dominate the market.
Today only one is still trading in private
The Hidden Quant.

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His name is Roger. Hes a 20 year veteran of the financial markets


whos profited on everything from stocks and commodities to options
and forex. In 2006 he held the largest single corn options position in
the world.
In 1998 he started his first hedge fund. And yes - like the other
Quants he too had a secret weapon. Hed discovered the secret of the
forbidden numbers
0.95
1.5
And
0.66
Once hed deciphered the pattern - he started shattering performance records. Over the life
of his fund, he averaged 43.39% per year. From November 1976 to the end of 2011, Warren
Buffett only delivered an average annual return of 19%.
Roger started with $20 million in investor capital.
Within 10 years, hed traded that into $740 million.
Thats like turning $20,000 into $740,000.
Or $10,000 into $375,000. All this in only 10 years!
At that point, he could have continued piling up profits for his ultra-wealthy clients...
But being from a working class family, something about devoting the rest of his life to making
the rich just a little bit richer didnt sit well with him.
He wanted to help regular, everyday traders and investorsincluding blue collar folks, like
his own parentsgrow their accounts and retire more comfortably.
So in 2008, he shut down the fund.
Since then hes been trading the forbidden number pattern with a small circle of ordinary
investors. None of them are Wall Street tycoons or Fortune 500 CEOs. Yet his under the
radar returns still beat 99.9% of the hedge funds on Earth.
And get this
As impressive as those results may be

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Even those once in a lifetime gains pale in comparison to what were seeing with his latest
breakthrough. You see - recently Roger made a shocking discovery. He found a way to
apply his strategy to a new market - with even greater profit potential.
Suddenly, he could spot trades like

This entry pattern was signaled on October 13th. We took the trade on October 14th - buying
the stock at $98. By November 1st it had jumped to $113.96...

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A 19.2% gain in two weeks!

Then on February 15th, the forbidden numbers signaled a trade at 154. By March 1st - just
two weeks later - it had gained 14.7%.
And we werent finding these trades once in a blue moon
We were getting 10-20% pops every two weeks - like clockwork. When you let those gains
compound, your portfolio grows quickly.
Since 2010, the forbidden numbers delivered total returns of 27,056%!!!
If we break down the individual year-over-year returns
On a $10,000 account you would have earned $21,727 in year one
$83,475 in year two
$91,688 in year three
AND - a stunning $354,371 in year four
By today - youd be sitting on a whopping $2,665,482!

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Obviously, thats impressive. Those returns destroy every major hedge fund over the last six
and a half years. Ive always believed that bold claims, require big proof. So right now you
should be asking yourself an important question
Is this real?
As you read through the rest of this eBook, youll witness overwhelming proof of the
forbidden numbers first hand. Once you see how they work, youll be forced to admit that
the phenomenon is real - and incredibly powerful.
Our first step is to look at the market through the eyes of a Quant.
You need to abandon everything you think you know about trading - investment - and what
really makes stocks tick. Well start with the single most deceptive invention in the history
of technical analysis. Im talking about
Lagging Indicators.
Virtually every popular trading strategy and signal service uses them. If youve ever traded
with Moving Averages or Bollinger Bands - youve probably been drawing the wrong
conclusions about what these signals are really telling you.

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Take A Look At This Chart Of Apple With Moving Averages. Its Signaling a Clear Buy.

But Instead Of Climbing Like We Expected - Amazon Plunged Through Our Stop Loss
Kicking Us Out Of The Trade.
Bollinger Bands arent any more helpful either...

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Here were in overbought territory on Amazon. That Should Signal A Sell.

Yet The Stock Continues Cruising Higher For Several Days. Your Short Would Have Been
Annihilated.
Oops!
Of course, anyone can cherry pick an example to prove a point.
So lets dig deeper into the why.
That brings us to our next major revelation:
The #1 predictor of short term market direction isnt price history...
Its price momentum!
You see - price is most closely connected to the pulse of the market. If a stock is surging it will likely continue to surge. Everything else is secondary or derivative of price, which
makes it late... thats why they call secondary indicators lagging...
Because they dont predict future prices - they FOLLOW them.
Your popular lagging indicators might look great on a chart. They match up tightly with big
historical price movements. Theyre even pretty good at predicting long term price sentiment.
But when you use them to pick entries and exits
Youre just spinning the roulette wheel!

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Your odds of winning are no better than 50/50.


When you trade with a lagging indicator, its like driving your car while looking at the rear
view mirror. You get a real good idea of where youre coming from. And, if youre on a nice
straight highway - youll be fine. But if you hit a sudden twist or turn?
You wind up a burning wreck on the side of the road.
Thats why you need to make the switch to Leading Indicators.
Leading indicators work with price directly.
They measure market momentum.
When you trade with them you see where price will go. So you can make accurate
predictions about which securities will outperform in the future. Over the last 15 years,
quants like Roger have ALL made the shift to this new methodology.
Ordinary traders and investors have been left in the dust
Running around like chickens with their heads cut off
Betting on strategies with zero predictive power!
Today that changes. And yes - its thanks to the the forbidden numbers:
0.95
1.5
And
0.66
Each one is a trigger value for a separate leading indicator. When all of them appear for a
single stock - you know its time to buy. This set of indicators is the most powerful, and
accurate Ive come across in my 30 year financial career.
It was the foundation of Rogers hedge fund success in the 1990s - with 43.39% average
annual returns
And yes - its the key to his new strategy today.

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This stock first passed the pattern in September.


.95... 1.5... .66.
Pulling the trigger would have resulted in a 25.5% gain.

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In that same cycle, the pattern triggered another trade...


Which would have bagged a quick 11%!
Altogether the forbidden numbers would have returned 12% across your entire portfolio
in just two weeks. I know plenty of traders and investors who would be jumping for joy to see
that kind of performance in a YEAR - much less every 14 days.
And let me remind you
These trades win 69.8% of the time. Plus - your winners are typically MUCH bigger than
your losers. On average youll make $3.43 for ever $1 you risk.
Or $3,430 from every $1,000 in risk!
Since 2010 - this approach has averaged 129.8% per year.
Thats enough to grow a $10,000 investment into $2,665,482!
I imagine Ive got your attention now. Youre likely curious to figure out precisely how the
forbidden numbers work
Keep reading and youll soon find the answer.

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The key is to find a high growth market - where we can capture big moves, in small trading
windows. In the next chapter Ill reveal

The blockbuster market that Roger identified 9 months ago - where you can net
17.3%... 22%... or even 31% pops in precisely two weeks.

A secret plunge protection asset that trades sharply up whenever markets drop so you can profit EVEN if China melts down or Deutsche Bank goes bust.

How to build forbidden number stock clusters for a 69.8% win rate on ALL of your
trades - where you can potentially earn $3.41 for every $1 you risk.

If that sounds good to you - make sure to read Chapter 2.

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Chapter 2: The Plunge Protection Secret


Welcome to Chapter 2. When we left off, Id just shared three of the most powerful
forbidden numbers in the world with you. They are:
0.95
1.5
And
0.66
I explained how these numbers are trigger values for three leading indicators - each of
which was pioneered by my good friend and associate Roger. Over his hedge fund career,
he used them to turn $20 million into $740 million in just 10 years - averaging 43.39% per
year.
I also told you about a new market hes targeted
A market with vastly greater profit potential
Potentially being able to return 129.8% average annual returns
If youd traded it with the forbidden numbers from 2010 to 2016 - youd have earned 270x
your money. Enough to turn every $10,000 you invested into a cool $2.7 million!
And if youd been trading it for income instead of growth? A $50,000 account could have
potentially delivered you an average monthly income of $5,408...
All without ANY drawdown - or loss - greater than 8%.
As you read this chapter, youll hear about

The blockbuster market that Roger identified 9 months ago - where you can net
17.3%... 22%... or even 31% pops in precisely two weeks.
A secret plunge protection asset that trades sharply up whenever markets drop so you can profit EVEN if China melts down or Deutsche Bank goes bust.
How to build forbidden number stock clusters for a 69.8% win rate on ALL of your
trades - where you can potentially earn $3.41 for every $1 you risk.

Whats truly incredible about Rogers strategy is that it can be applied to practically any
market. The three leading indicators he uses allow us to forecast the future price direction of
stocks, bonds, currencies - even the commodity markets.
Over his career hes traded it with dozens of different securities.

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Since 2008, hes focused on a handful of broad market ETFs. Each one represents a key
sector of the global financial system. Like SPY - the S&P 500 ETF. Or ILF which tracks an
index composed of 40 of the largest Latin American equities.
Hed rotate his portfolio into - and out of - these ETFs every two weeks.
His goal was to position himself perfectly for ALL market conditions.
And his results?
Average returns of 50.91% per year...
Substantial profits DURING the crash in fall 2008
And a whopping grand total of 2,815% returns in 8 years!
Thats enough to turn every $10,000 into $281,500.
Again most traders and investors would kill for that kind of portfolio growth. Theyre lucky if
they can beat the S&P 500s long term average of 8-9%. Thats why the results were seeing
in the new market weve targeted with the forbidden numbers are so shocking.
Instead of 50.91 average annual returns
Were looking at 129.8% per year!
On a $10,000 account...
Over 5 years, thats the difference between $78,269 and $640,840!
You see - while Rogers ETF focus was delivering phenomenal growth - he knew it wasnt
living up to its full potential. The securities he was trading were too stable. A major index
doesnt have a 10-20% pop outside of highly extreme market conditions.
So - he began searching for a new market
An asset class custom tailored for his forbidden numbers strategy
Rogers investment criteria was very simple:
The assets in question needed to be highly liquid. He didnt want to get trapped in risky
penny stocks - or lightly traded commodity futures - or any other securities where wed face
constant headaches entering and exiting our positions.
He wanted to focus on individual stocks. The S&P 500 is composed of 500 different
equities. Even when its up, some of the stocks in it are down. That means your gains are
restricted by ALL of the losers youre forced to hold.

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By focusing on a handful of winners - we can increase our profits.


And last, but not least
He was only interested in high growth. Companies like McDonalds (MCD), Union Pacific
Co (UCP) and PepsiCo (PEP) simply dont move enough - up or down - for us to trade them
actively. Theyre as stubbornly stable as our ETFs.
He needed stocks with the potential for massive short term price moves.
With that criterion in mind - there was really only one option:
High growth stocks listed on the NASDAQ exchange.
The market met ALL of our conditions.
They were individual stocks - not indexes, currencies or commodities.
From a liquidity standpoint - ALL were highly active.
Facebook (FB) trades 13.7 million shares per day
Thats $1.78 billion in average daily turnover.
Ebay (EBAY) trades 9.57 million shares per day
Thats $277 million in average daily turnover.
Apple (AAPL) trades 41.6 million shares per day
Thats a stunning $4.8 billion in average daily turnover!
Bottom line: youre not going to have any trouble getting in or out.
And the returns we can capture?

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Over a two week stretch in the summer of 2016, American Airlines (AAL) rocketed from
$25.57 to $34.66 for a 35.5% gain. No ETF is giving you that sort of win.

From May April 28th to May 12th, 2016 - Amazon (AMZN) shot up from $602 to $717.93 for
a 19.2% win. Again - the S&P 500 will never beat that.

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And between February 9th and 24th, 2016 - Akamai Technologies (AKAM) soared from
$39.57 to $54.78 - for a massive 38.4% pop in two weeks!
Now those are just a few examples of big moves. Theyre not examples of real trades we
took with the forbidden number pattern. Im only sharing them with you so you can witness
first hand the profit potential in high growth NASDAQ stocks.
With that said - we are able to capture shifts of that magnitude
In Chapter 1 I shared a few trades we took with the forbidden numbers.
At the time - I hid the identity of the stocks wed traded.
Now Im going to share them with you.

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We did 17.3% on Autodesk (ADSK) in two weeks

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22% on American Airlines (AAL) in two weeks

And 11% on BAIDU (BIDU) also in two weeks.


PLUS we also had trades like

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8% in Ebay (EBAY)

31% in Priceline Group (PCLN)...

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Or 19.2% in Biogen (BIIB) - all within two weeks


When you can predict and capture those gains consistently
The profits are unlike anything youve ever seen
Giving you a potential average return of 129.8% year over year!
Since 2010 - investing with this strategy would have turned every $10,000 into a little over
$2.7 million. Thats 270x your money. Do the math on that for me.
Take the value of your portfolio now multiply it by 270.
I bet the number youre looking at is pretty freaking huge, isnt it?
So the verdict is in: high growth NASDAQ stocks are the PERFECT asset class for the
forbidden numbers. And, they only have ONE real downside.
You might have guessed what it is already
Any stock that can pop 22% in two weeks can dump fast too.
Lets take a look at what happened during the housing debacle of 2008-2009.

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On September 15th, Lehman Brothers filed for bankruptcy. Within a month the NASDAQ
composite had plunged from 2,273 to 1,649.
Thats 27.4% free fall.
It was a bloodbath.
For individual stocks - the damage was worse.

Amazon (AMZN) plunged from $81 to $48.90 - for a 39.6% decline.

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From August 8th to November 14th - Intel (INTC) collapsed from $24.26 to $13.32.
Thats a 45% drop.
Your portfolio cant survive those knock out hits.
The good news is that it doesnt have to.
As it turns out - Roger has a way to shield your positions from devastating losses - even in
an outright huge market decline. If youd had this plunge protection secret in 2008 - you
would have earned windfall profits while everyone else in the market took a 47% loss!
This little known technique has nothing to do with stop losses or options.
Stop losses might sound like a great idea. In theory, they keep losing trades from getting out
of hand and crippling your account. The problem is that they tend to whipsaw you out of
positions whenever the market dips right before big moves.

Look at this chart of Amazon (AMZN).


Notice how it stops you out twice before moving higher?
Youd have taken two small losses instead of a single big win. Worse still - your win rate
would collapse from the 69.8% were seeing with the forbidden number pattern, down to
50% or less. A stop loss strategy actually forces you to lose more often.
Options arent a wise approach either.
Buying PUT protection on all of our positions would be expensive. And - since we know our
trades have a 69.8% win rate - we also know that 69.8% of our insurance options contracts
will expire totally worthless. Wed only drag down our overall returns.
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Thats why were protecting our gains with something very different
A brand new security that makes your portfolio practically bullet proof

Take a close look at these two charts from the fall of 2008. Notice how they trade in the
exact opposite direction? The one on the left is SPY - the most highly traded ETF in the
world. It tracks the S&P 500 Index. The one on the right is TLT.
It tracks the long term U.S. bond market.
When stocks are booming, investors move out of the fixed income market and start buying
up equities. But when crisis strikes, they flee to safety. You see massive capital flight out of
stocks and into risk free U.S. Treasury bonds.
After Lehman collapsed and AIG blew a $100 billion crater in the financial market - investors
scrambled for ANY island of stability. The TBT ETF spiked 24% by Christmas. If youd
rotated out of stocks and into bonds in time - you made money.
For years Roger has used TLT as a hedge in his portfolio.
It was the key to his forbidden numbers strategy in the ETF market.
Now hes found a way to make it even more powerful. Hes doing it with a new ETF that was
introduced in 2010 called TMF - otherwise known as the Direxion Daily 20+ Year Treasury
Bull 3x Shares. It takes a 3x leverages position in U.S. Treasuries.
If it had existed in 2008 - it wouldnt be up 24%...
It would have popped by around 72%!
With it, Roger can build simple stock clusters with a tiny, protective position in TMF. Even a
small position will still shield his NASDAQ stock gains from crippling losses.
Heres how it works:

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Every two weeks he ranks NASDAQ stocks with his three indicators.
When he spots the forbidden numbers:
0.95
1.5
And
0.66
...he rotates out of existing positions and into new ones.
The numbers tell him WHERE and HOW MUCH to invest in each position. They tell him
WHEN to buy - HOW LONG to hold - and WHEN to sell. So theres no guessing about
position sizing, entries or exits. The numbers handle all the thinking for him.
Then - every two weeks - he has a portfolio like this

This is a real cluster the forbidden numbers predicted in 2013. Over two weeks between
April 15th and 30th - youd have potentially earned $12,343.52.

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Of course, that cluster is in an UP market.


When the market is DOWN we might be
50% in TMF.
20% in Ebay (EBAY).
10% in Sirius XM Radio (SIRI).
And 20% in NETFLIX (NFLX).
After two weeks, all of our NASDAQ stock positions are down. But the TMF position is up
$1,467. So all told its still up $693.67 on an account in exactly two weeks.

And it doesnt stop there

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On this cluster it made $8,622.55 even though half the positions were down.

And on this one it made $18,151.14 - with gains on ALL the stocks AND TMF!
When you add up those bi-weekly results over time - the profits are staggering. Since 2010,
the forbidden numbers have earned 129.8% on average per year.
On a $10,000 account you would have earned $21,727 in year one
$83,475 in year two
$91,688 in year three
AND - a stunning $354,371 in year four
By today - youd be sitting on a whopping $2,665,482!
Now - if youve been paying attention up to this point
Youre probably pretty excited.
But I imagine youve also got a question or two on your mind
Because while you know the forbidden numbers:
0.95
1.5
And

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0.66
And you know theyre trigger values for thee leading indicators
You have NO idea what those indicators are. You dont know HOW Roger fits them together.
And you definitely dont know how he constructs his profit clusters.
In Chapter 3 were going to fill in those blanks.
Youll discover

The identity of each of our leading indicators - plus how Roger uses the forbidden
number pattern to precisely calculate his next move every two weeks.

Youll hear the secret of the profit clusters and the formula that can earn 129.8%
average annual returns on high growth NASDAQ stocks.
And - as a special bonus

Ill reveal a special option technique that allows you to trade Rogers strategy for up
to 10x higher profits - with the exact same amount of overall market risk.

Youll get all of that in Chapter 3.

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Chapter 3: The Forbidden Numbers


Welcome to Chapter 3.
Youve heard a lot over the last few days. I revealed the importance of Leading vs Lagging
market indicators. You found out how Rogers system is earning up to 20-30% every two
weeks on Blue Chip NASDAQ growth stocks like Apple, Baidu and Tesla.
I walked you through the profit clusters he uses to capture once in a lifetime gains, and
the bulletproof asset he uses to protect them. Owning this during the 2008 crash would
have made you a BIG winner - even while everyone else got wiped out.
As you read this chapter over the next few minutes, youll discover

The identity of each of our leading indicators - plus how Roger uses the forbidden
number pattern to precisely calculate his next move every two weeks.

Youll hear the secret of the profit clusters and the formula that is used to earn
129.8% average annual returns on high growth NASDAQ stocks.
And - as a SPECIAL BONUS

Ill reveal an option technique that allows you to trade Rogers strategy for up to 10x
higher profits - with the exact same amount of overall market risk.

These are the final pieces of the puzzle. The pieces that Wall Streets big money
institutional traders have been jealously guarding for the last thirty years.
They represent the greatest breakthroughs of the Quant Revolution.
With them youll effortlessly capture trades like

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25.9% in Regeneron Pharmaceuticals (REGN)

27.8% in Yahoo (YHOO)

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Or 24.2% in Tesla Motors (TSLA)

All in precisely two weeks!


Again - a 20% or 30% pop might not sound huge.
Were not talking about a 1,000% moonshot.
BUT - week after week - as these returns compound - the impact on your portfolio is
astounding. Since 2010, the forbidden numbers have produced average annual returns of
129.8% per year. Over six years, you could have earned 260x your money.
Enough to turn every $10,000 into a little over $2.6 million.
And if youd been trading it for income instead of growth? A $50,000 account could have
potentially delivered you an average monthly income of $5,408.
It does this with shockingly low levels of risk.
Even though the S&P 500 plunged by over 16% - twice - this strategy has never suffered a
loss greater than 8% since 2010. So you can harvest returns that trump the worlds top
hedge funds - without jeopardizing your financial future.

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At this point we ARE going to get a little technical. Before we do - I want to assure you that
you will not be required to perform ANY of the math or technical analysis Im describing in
this chapter. Rogers found a way to avoid all of that.
Im only walking you through the nitty gritty of the system so that you know
A) How it works.
And
B) That its 100% real.
With that warning out of the way
Lets dive in and talk about the forbidden numbers
0.95
1.5
And
0.66
You know from Chapter 1 that each represents a trigger value.
When our three powerful leading indicators show these values for any NASDAQ stock, we
know its time to buy. The stocks we buy pop 10%... 20%... even 30%... within the next two
weeks - with 69.8% accuracy. Every $1 we risk turns into $3.43 in profit.
What you dont know is how those indicators work.
Now Im going to to fill in the final gaps.
Well start with the first number
0.95
To understand what it means - I need to tell you something controversial
Predicting the stock market IS a lot like rocket science.
AND - thats actually good news.
In 1957, the Soviets put Sputnik into orbit. Since then, weve launched some 2,271 satellites
- hundreds of manned missions - and even 6 trips to the moon. The math behind spaceflight
is very well understood. Its so simple - the computer used to power the Apollo program was
less powerful than a Nintendo gameboy.
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It all comes down to the principle of momentum.


If you know how fast a rocket is going
And if you know what direction its travelling
You can figure out exactly where it will be in the future.
Stocks work the same way. A stock thats roaring will likely continue to roar. And a stock
thats falling off the face of the Earth? Expect it to keep plummeting until a major event of
some kind shifts its momentum - sending it back up again.
If you can figure out which stocks have the most momentum
Youll know which stocks represent the strongest buys!
Thats what 0.95 tells us.
It comes from something called Relative Strength. And no - you shouldnt confuse this with
RSI - another popular indicator. This approach is very different from anything youve traded
with or seen from the so-called trading gurus out there.
Basically - we calculate the strength of a stocks PRICE compared to others over 30, 60, 90
and 200 day periods. When a stocks price growth is in the top 95th percentile -- or when its
price movement outranks .95+ of all others in the market...
Its very likely the move will continue.

Take a look at this chart. It shows how stocks that out perform KEEP out performing.
This is our first buy trigger.

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Every two weeks Roger does the math. He ranks the roughly 3,100 high growth stocks on
the NASDAQ. Then he identifies the 5% - or approximately 155 companies that pass his first
test. These become our bi-weekly pool of potential
NASDAQ Titans.
But he doesnt stop there
Roger has two other buying triggers
And the next one is just as important as the first
Im talking about:
1.5
Momentum is critical, but it isnt everything. Eventually, buying pressure will peter out. Even
the strongest trend can dry up. You need a way to predict - in advance - when a stock is
nearing the end of a major bull run. We do that with volatility.
When a trend is strong and stable - volatility is low.
If volatility spikes - thats a red flag.
The balance between buying and selling pressure starts to flip. Trading ranges on any given
day widen noticeably. You can expect crazy price swings - up OR down.
It tips us off that momentum is about to hit a brick wall.

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Take a look at this chart of Amazon (AMZN).

As the stock climbs, volatility stays flat - or even declines. If you look at the daily charts on
the right, theyre tighter and narrower the ones earlier in the chart. We can expect the trend
to continue
In fact - it might even accelerate
Which means its 100% safe for us to go long.
And sure enough - the trend did continue. Over the next month Amazon kept climbing all the
way up to $834 per share. Thats another 7% gain!

Now look at this chart of QQQ Powershares (QQQ).

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Notice how volatility spikes as the up-trend flattens out.


Its a big, red warning sign telling us to stay out.
After looking at thousands of stocks over the last decade, and running through every
possible scenario... weve found that its only safe to trade a stock when the 10-day volatility
is UNDER 1.5 times the 90-day average.
Thats where we get our second forbidden number...
1.5
Once we have our initial pool of 155 potential NASDAQ Titans - we need to see how they
hold up to the volatility test. We calculate their 10 and 90-day volatility - and we remove any
stocks with a volatility ratio higher than our 1.5 target.
This keeps our trading accuracy high
Averaging 69.8% over 581 trades since 2010.
Now - we DO have the occasional bad trade. No trading system is perfect. But our winners
are typically MUCH bigger than our losers. On average - we earn $3.43 cents in profit for
every $1 we risk. Thats like making $3,430 on every $1,000.
Or $34,300 on every $10,000.
But we dont stop there
We take one - final - step to protect our portfolio. Its a kind of diversification - but not like
youve ever seen before. When most financial managers talk about diversifying your portfolio
- they just mean holding a whole lot of positions at once...
Watering down your losses - and your profits - to the S&P 500 average.
What theyre missing is something called correlation.
You see, some assets - like U.S. stocks and long term U.S. Treasury Bonds - dont trade in
the same direction. There is a strong negative correlation between them. So you can hold
both in your portfolio and it decreases your overall risk.
Thats good diversification.
Its the core of our plunge protection strategy.
Other assets - however - are positively correlated. They share the same underlying market
or industry fundamentals, and they tend to trade in the same direction.

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On 9/11 - Airline stocks all plunged at once. If wed loaded up on American Airlines, Delta
and United Continental Holdings - wed have been wiped out.
And you might think of course airlines got beaten up after September 11th. That was a
once in a lifetime crisis. It wont happen again. But take a look at this

Even in non crisis times - these stocks tend to trade together.


The Airline industry is just one example.
Most market sectors have a correlation problem. If another Fukushima meltdown kicked off
while you were holding Areva, Excelon and GE for example
Your portfolio would be as radioactive as the disaster site.
Fortunately, we have a way to safeguard against correlation
A way to get the benefits of diversification - without giving up our returns.
Its all thanks to our final forbidden number
0.66
Two stocks with a correlation of 0.66 or greater trade in the same direction at least 66% of
the time. If one drops - the other will also drop 2 times out of every 3.
Thats an unsafe level of correlation.
We would never hold both stocks at the same time.
Wed always remove the lesser of any two correlated stocks BEFORE we create our biweekly Profit Clusters. This reduces our risk AND greatly increases our upside.
The process itself is simple.

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First we use relative strength to identify our pool of roughly 155 potential NASDAQ Titans.
Next we apply our volatility test to eliminate any stocks where momentum is at risk of
fizzling out. Then we pick the 3-4 best - highest ranked - opportunities.
Our last step is the correlation check. We remove and replace ANY stocks in our cluster
that have a correlation of 0.66 or higher with ANY of the other stocks.
Every two weeks we wind up with a cluster of NASDAQ Titans like this
33% in Tesla (TSLA)...
33% in Electronic Arts (EA)...
33% in Celgene (CELG)...
The forbidden number pattern tells us WHAT to hold. It tells us HOW much to buy and
WHEN to sell. It spoon feeds you every move youll ever make in the market.
And TWO WEEKS later - youre out again.
Only now - youre looking at a $28,821 profit on a 6.8% gain on our portfolio.
AND youve got a whole new cluster to rotate into. Like..
25% in TMF (TMF)...
25% in Qualcomm (QCOM)...
25% in NVidia (NVDA)...
25% in Amazon (AMZN)...
For $18,151 in profit!
When you add up those wins every two weeks
They compound to 129.8% - on average - year-over-year!
And you dont have to wait for the earnings to add up either. If youd invested just $10,000
with the forbidden number pattern in 2010 - you would have earned:
$21,727 in year one
$83,475 in year two
$91,688 in year three

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AND - a stunning $354,371 in year four


By today - youd be sitting on a whopping $2,665,482
OR 266x your money!
With that kind of growth you could potentially turn every $10,000 into $22,980 in the next
twelve months $640,840 in five years and over $41 million in ten.
PLUS - if you want to trade for income instead of growth? On a $50,000 account you could
potentially be looking at $5,408 in average monthly income.
Not bad, right?
BUT - it can actually get better
Some time ago Roger asked himself a question
If you can use the forbidden number pattern to identify high growth NASDAQ Titan stocks
to buy every two weeks could we use the same strategy with options?
It turns out the answer is yes.
And it can deliver profits up to 10x higher.
Take a look at this cluster
25% in TMF (TMF)...
25% in American Airlines Group (AAL)...
25% in Express Scripts Holdings (ESRX)...
And 25% in Western Digital (WDC)...
It was up 3.93% in two weeks.
On a $10,000 account thats $393 in profit.
BUT - if wed taken these trades with options
Wed be up a stunning 47.12% in two weeks
Thats $4,712 in profit if youd invested just $10,000!
If you can figure out which NASDAQ Titans to rotate into

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You can potentially make profits every 14 days like the ones youve seen throughout this
entire e-book.
Thats the power of the NASADAQ Titans method.
Well, I really hope you found the information contained in this e-book valuable, and
information you can use in your own trading.

To LEARN More

Watch this FREE 2 hour class and learn the complete rules to a growth and tech
stock strategy that generated 570% return over the past 6 years...with no leverage!
Learn to create stock & options 'Profit Clusters' to target massive gains and
potentially multiply a small 10K account by over 260X with less risk than other
strategies!

Trading Concepts, Inc.

Page 45

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