Are you a victim of “subtle portfolio churning”?

Ed Seykota is best known for returning 250,000% over a 16-year period.

Like many, he started out using fundamental information – and quickly lost money on his first copper trade suggested by his broker, and his second “can’t lose” trade on silver.

Shortly thereafter, he discovered Richard Donchian in the 70’s.

Richard was unique at that time, and wrote about a 2-week price breakout system in copper.

You could buy new 2-week highs in copper, and sell fresh 2-week lows.

In the middle of those breakouts are your profits.

So basically if you had a decent sized nest egg, and followed the system, you could make a whole lot of money with a small amount of actual work – every trader’s dream right?

Ed had access to a mainframe computer that took up an entire room in those days.

So he used punch cards and a computer to test Donchian’s rules – not only on copper, but every commodity.

Soon, he found an incredible system for trading commodities.

He worked for a brokerage firm at the time, and they marketed his system to clients.

What they found was that those trading the system made money.

But the brokerage firm was making about a tenth the profits because normally, a trader would open an account, trade like mad…and then go broke.

In the process, the firm would make a bunch of quick money from commissions.

So what did the brokerage house do?

They immediately stopped offering Ed’s system to their clients.

Talk about a conflict of interest right?

Fast forward to today.

Many of the major brokerage firms offer back testing software.

They make it extremely easy to back test and optimize trading a single stock, a single ETF, a single Forex pair, or a single futures contract.

In fact, since the testing is focused more towards trading a single instrument, most would-be traders naturally gravitate towards day trading.

Why get rich slow, when you can get rich fast?

Yet the vast majority of clients still lose money – but not before churning their account, and making the brokers as rich as ever.

The difference is that instead of a broker calling you up and selling you on the hot stock opportunity of the week, you’ve already sold yourself down the river without even knowing it.

Selling yourself is far more powerful than even the best salesman’s pitch.

When I wrote The Relaxed Investor, I introduced a strategy that only trades once a month.

It does so by rotating into a basket of 4 to 10 of the strongest ETFs – like gold, stock sectors, and bonds.

It only took me and my team six months to produce version 1.0 of software that could test a set of rules over thousands of stocks and ETFs, and trade an entire basket of instruments – not just one at a time.

That’s what I found to produce the most stable results.

Why aren’t there better solutions for trading a basket of stocks and ETFs?

Is it as Ed says…the brokers would end up making less when you trade less?

So that begs the question…are you churning your account with tools that are designed to subtly influence you to trade more often.

Trade smart,

Dan “Prince of Proof” Murphy

Note: If you want to trade less while avoiding the next crash, download my latest report Winning in the Stock Market: How to Spy on the Secret Trading Moves of Wall Street’s Moneyed Elite.

Inside, I show you the formula that has sidestepped every major crash since 1987, beat the stock market by 1244%, all while trading only a few times a year. Learn more here >>