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Tsunami Trading Educators

Here comes another system--which costs a whopping $6500--that claims to use no indicators whatsoever, only proprietary charts, to day trade the ES. I swear these sites are multiplying faster than roaches in an old soup can. What is so special about trading on price action? It's been done ever since markets existed but lately has become so new and vogue.

I've taken the free trial a couple of times and I'm not impressed. It obviously is targeting the novice trader who has spent a lot of time and money on other trading tools and still is losing money. Who else but the desperate and/or naive would wire $6500 to someone's bank account who, like most others in this con game business, won't even disclose their name, let alone a phone number. In addition to sending your money in a non-recourse fashion, new members are required to sign an unbelievably one sided disclaimer that doesn't even tell you where this company is located. In addition, a search under "who is" reveals an anonymous front hosting company (Tucows).

In fact, the guy who runs this shop (Blade) is so paranoid and secretive that he doesn't even let other members communicate amongst themselves away from the room. He totally forbids any sharing of emails, IM, or Skype and is lightening quick to erase any such posts. On several occasions I witnessed him bleeping out this type of info AND admonishing the person who posted.

What I found particularly interesting was the use of shills in the room to praise and tout the system to the folks who were in for free trial. This is a variation of the three card monte scam in which the people winning money right and left (in this case alleged "members" who expound the virtues of this system ad nauseum) lure the unsuspecting visitors to get on board. Blade himself is the biggest showman when he makes the right call on a trade, making it seem that the magic secret of interpreting price action through this so-called proprietary system is the answer to your dreams. And indeed, the website has all the bait with pictures of folks living their fantasy lives on some tropical island with a Ferrari in the driveway.

In the two weeks I spent in the room, I calculated a win rate of approximately 59% as defined by a trade making one point before hitting a 1.25 stop. No great shakes. Blade claims the system is "robust" in that it gives many signals during the trading session. (I witnessed 10 calls in one day.) When a trade gets stopped before profit Blade has a litany of excuses that are too long to mention in this thread; suffice it to say as any true conman, he knows how to put a spin on the negatives as if it really wasn't all that bad. For example, the market is "acting violently" and the price action, therefore, can't be properly discerned. Blame it on anything but the system. After a couple of quick stopouts in a row, he takes a break as moderator and the room sits in silence.

Although I'm not privy to his secret system, my observations tell me he uses a short term candlestick chart (10 or 15 minute) calling out buys at obvious support and sells at resistance. Anyone with a rudimentary understanding of technical analysis and chart reading could easily make the same calls. I also believe he uses a modified pivot point for his early morning calls which I did find funny. (f X price is broken, expect to go to Y and if that is broken, the Z and vice versa for the upside).

The free trial is worth the price of admission for entertainment, but not much else.

It is obvious he has been making changes in his corporate filings to hide his identity. I know that you can ask for the original articles of incorporation that will list his real name, but it is a hassle to get them from the State of Hawaii.

If anybody is curious, nothing has really changed in the Tsunami room. He continues to get an occasional person to sign up, but attendance in the room is pitiful. He continues to have losing days for the most part when he makes his calls live. In RETROSPECT however, he points out how the system is nearly perfect.

He is very proud of his S & R lines, noting how accurate they are at predicting market turns. Hey Blade, if I put in as many levels as you do each morning I am sure at least one or two of them would be accurate also.

Some of the students seem to be able to trade much better than Blade, but none of them ever post entries, only exits, so who really knows.

Please, if any prospective students find their way here, just read back through the postings here. This Blade character cannot trade, does not have a viable system, and will not be able to teach you to trade. Save your money.
Thanks for the updates redsioux. I haven't been back to his room in a long while, but can only echo your warnings about this guy. He is bad news once you see through him and his "system".
Great find elitetrader. thanks.

Originally posted by elite trader

Just found this:
which says about the company TSUNAMI TRADING EDUCATORS, INC. "This business is not in good standing."

(emphasis mine)

also interesting are all the changes:

Feb 15, 2007 Agent Address Change
Nov 17, 2006 Change of Registered Agent
May 22, 2006 Address Change
May 19, 2006 Agent Address Change
Mar 24, 2006 Articles of Incorporation
I'm fairly sure that this is a different company but a bit of a coincidence in names, business area and style of operation:

CFTC Charges Illinois Resident Anthony A. Demasi and His Company, Tsunami Capital, LLC, with Fraud

[quote]Washington, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in the U.S. District Court for the Northern District of Illinois against Anthony A. Demasi and his company, Tsunami Capital, LLC, both of Chicago, Illinois. On April 26, 2007, the Honorable Robert W. Gettleman, U.S. District Judge, issued a restraining order prohibiting the defendants from destroying documents or denying CFTC staff access to books and records. The order also freezes defendants’ assets.

The CFTC complaint, filed April 25, 2007, alleges that, from at least December 2004 to the present, Demasi and Tsunami Capital fraudulently solicited and accepted at least $300,000 from at least three individuals for the purpose of trading financial futures as part of a commodity pool called Tsunami Lakeshore.

As alleged, Demasi convinced at least one pool participant to invest by providing him with a false track record that showed two years of trading profits, when, in fact, Tsunami Lakeshore did not have an active account during most of the period and had lost money during the months when it did. The complaint also alleges that Demasi and Tsunami Capital distributed false statements to at least two pool participants throughout 2005 showing that their investments were earning substantial profits in 2005 and the first quarter of 2006. However, the Tsunami Lakeshore trading account was closed in January 2005, and the only other trading accounts maintained by Tsunami Capital sustained losses or were less profitable than represented in five of the six quarterly statements they received.
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I don't believe there is any connection between Blade and this scam artist in Chicago, other than they should both be in jail.

The last time I talked to a Tsunami Trading victim, it sounded like it was nearly defunct. She said Blade has turned over moderating to one of his students, there are only 2 or 3 people in the room most of the time, and the strategy is still having dismal results.

A sad sad story. Somewhere around 90 people sent this crook $6500 and now a few months later he is retired and laughing all the way to the bank.
Originally posted by redsioux

I don't believe there is any connection between Blade and this scam artist in Chicago, other than they should both be in jail.

The last time I talked to a Tsunami Trading victim, it sounded like it was nearly defunct. She said Blade has turned over moderating to one of his students, there are only 2 or 3 people in the room most of the time, and the strategy is still having dismal results.

A sad sad story. Somewhere around 90 people sent this crook $6500 and now a few months later he is retired and laughing all the way to the bank.

RedSioux and Daytrading..I think you both should be proud.

It was Red Sioux' Comments and Daytrading's forum that allowed this scam artist to be exposed for the con man that he is.

I think you both have prevented many "fools from parting with their money".

Congrats and Thank You
While those involved are taking bows and coming out for encores, don't forget that ahk was the originator to expose this scam, despite him now being persona non grata.
problem is that he was essentially the pot calling the kettle black
Looks like Mr. Blade is back in business with a new software tool that uses price and volume. The price is $4999, about a grand less then the prior version.

Today was the second of a five day free trial and I was surprised there were only six people in the room. The last trial I took there were over 30 trialers and a slew of members. (He says there is a seperate room for members, but I'm skeptical because he calls the trades.)

He claims the software is 65% accurate (hitting a 2 point profit before a 1.25 point stop). This new improved software has only been in production for three months, so any performance numbers haven't been thoroughly tested. I could give you folks the results trade by trade or in summary form.

Let me know your preference.

For me, the trial ended today. There were two other trialers today, Blade, and a cameo appearance by Blade's muse, SueL. If the last three days is any indication of the ongoing performance of this software tool it wouldn't be long before the trader stopped trading. In a word, it was abysmal.

I'm not going to list trade-by-trade. Here is the summary:

Monday: 7 trades before 12:00 EST (4 losers, 3 winners)
Tuesday: 9 trades before 12:00 EST (7 losers, 2 winners)
Weds: 8 trades before 11:00 EST (6 losers, 2 winners)

Blade used every excuse under the sun, and put a spin on every loser to make you think it wasn't a loser, but a winner in disguise. For a moment I felt sorry for him as I could sense his frustration with the system, but then I came to my senses and realized he was the same old Blade in a brand new bottle, hawking the next great breakthrough in trading, knowing damn well it isn't worth a pile of beans, let alone $4,999.

I will leave you with this quote from the email I received inviting me to the trial (the emphasis is Blade's):

"You are on our email list and may have trialed us before. You may or may not have been impressed. There are a lot of trading systems out there for you to trial and perhaps you went on in our quest for the holy grail.

We have recently completed extensive research and work on our system. We now honestly can say that we believe we have solved day trading.

The answer is in the proper interpretation of price and volume action.

You are invited to see if we can do what we say.

All our trades are limit orders and use maximum stops of 1.25 pts.

We use our state of the art copyrighted software that reads price and volume in a completely new and innovative way! Combined with our proprietary price action triggering setups, making money in these markets has never been more consistent!

Please give us a trial. What have you got to lose? Be prepared to change the way you think about trading !"

Is blade's name John by the way? From what i ve seen, his latest scam is TsuBot, which he claims has an extremely high win rate in all markets. Watching it trade live, it's obvious that reality is much different. Interesting that he only takes into account the first profit target which is no more than eg 3 ES ticks or 5 GBP/USD pips (which is really 2 after spread which he totally ignores, but that should be expected as he has never placed a real trade himself). The corresponding stop loss is several times larger, a sure recipe for disaster. Avoid them at ALL costs no matter how tempted you feel to waste 6-7k