$395/month for a 4 month apprenticeship.

Thereafter you can remain a member of the room and receive all the alerts, benefits and advanced instruction for $75/month.

You will learn how to:

• Treat StatArb trading as a business.
• Develop a personal trading plan, based on your lifestyle and risk capital.
• Implement and manage your trades on paper until you are ready to use real money.
• Use StatArb trading to generate consistent profits for the rest of your life.

I would recommend against it. You should listen carefully and take notes, and post your questions in the chat. Even if you start building confidence after the first few weeks, it’s a good idea to paper trade first to get the order execution, and all the other moving parts involved down pat.

After your four month learning period has ended you will be a competent StatArb trader able to trade profitably on your own. You can retain your membership in the trade room going forward for just $75 month. This will enable you to:

• Receive Ernie’s timely alerts whenever a trade sets up or is about to pay off.
• Profit from Ernie’s relentless devotion to discovering new trading vehicles.
• Watch Ernie do what he does and learn.
• Enjoy the camaraderie and idea sharing in the trade room.

It’s a type of paired trading called Statistical Arbitrage. It is used by many hedge funds, a style that is market neutral, with a definitive edge.

With Statistical Arbitrage we do not trade individual securities.  We trade the price relationship between two highly correlated securities as follows:

• We apply a multiple to each security that gives us a direct price/value comparison. 
• The difference between the adjusted prices is the notional difference.
• We trade the notional difference.
• We analyze the historical notional difference in multiple time frames to determine its mean trade boundaries.
• When the notional difference diverges significantly from from its mean, we trade it until it regresses back to its mean.  

The advantage of Statistical Arbitrage is that it does not depend on market direction and risk is tightly controlled.

We highly recommend that you start by reading Statistical Arbitrage by Andrew Pole, it’s available on Amazon in hard copy as well as Kindle. It is spattered with some mathematical models for you nerds out there, but it also has excellent explanations of the major concepts behind Statistical Arbitrage and Pairs Trading.

We began the trading room in September 2011, and operated it as a “beta” room with a few test members for five months.  We officially opened our room to new applicants on February 1, 2012.

We trade the indices including; the E-mini S&P, Dow, and Nasdaq; Treasuries, like the 30 year, 10, 5 and 2; Currencies such as the US Dollar, Euro, Japanese Yen, Aussie Dollar and British Pound; Energy, mainly Crude Oil; and finally the metals like Silver and Gold.

We recommend that you take extensive notes while you’re in the trial, as a paying member you will have access to strategy documentation and other members-only tools and materials.

TradeStation workspaces are shown the room, but we also support Think or Swim charts and Sierra Charts. If you have one of these platforms, there are instructions and indicators that you can download as a member.

Yes, we call out trades and send out comprehensive email alerts. The purpose of the room is to teach you the trading methodology so that you can be independent of me calling trades. I recommend you paper trade before you feel comfortable taking my trades.