Frequently Asked Questions

Who is Diversified Trading Strategies (DTS)?
We are a due diligence firm for investors and traders looking for legitimate trading systems and investment programs that are not scams. The traders and systems we work with have proven track records from trading with real money. We offer a range of investments in forex, futures, options, stocks and exchange traded funds. We currently work with over 1,500 investors. We are also members of the Better Business Bureau.

How does DTS select its traders?
We carefully evaluate each trader we represent before we offer their services.  We only accept traders who trade with real money, and trade their own accounts. We require each trader to produce verifiable broker statements over at least a 3-year period documenting each trade. We will re-trade each program for 6 to 12 months. If it produces a similar return as provided in the broker statements, we will then bring the opportunity to our clients.

Will you be bringing on new traders?
Yes, we are always looking for successful traders. We like to work with a range of traders who have different trading styles – some aggressive and some conservative – to fit your investment personality ad current economic climate. We will provide you with FACTS of the best trading methods and systems for what is going on in the markets.

Is DTS a broker or IB?
No, we are not a broker, nor are we an introducing broker (IB). We want our clients to know we do not collect any commissions from trades, we don’t take a percentage of the profits or charge any on-going management fees. 

How is auto-trading different than a hedge fund, trading group and some money managers?
In the strictest sense, DTS does not offer “traditional managed account” services. Here is the best example: Take the recent Bernard Madoff scam. Mr. Madoff preyed on investors’ naivete, promising not great wealth, but steady returns that would keep their assets safe and secure. This was a company which took in the investment capital of its clients and did what they wanted to with it, while producing false return statements on their company letterhead.

Without having a non-biased, third party, licensed firm holding your money and executing the trades there is a huge possibility for fraud. Trading Clubs/Groups/Partnerships have the same issues. If you give your money directly to a fund, partnership, or “friend” to trade, this could be a recipe for disaster.

We suggest identifying the trading and investing systems you want to trade or invest in. Open an account at a different licensed brokerage firm where you are the only one with rights to the account. Sign a Letter of Direction to have all trades executed for you. You can also execute them yourself. This will eliminate the full control of your money by someone else. 

When an investor has a managed account, he or she gives an investment manager the authority to purchase and sell securities, futures, currencies, commodities based on specific goals without the need to request permission each time. At DTS, we offer auto-trading. Based on our traders’ recommendations, orders to buy or sell a position can be sent directly to your broker automatically. You authorize your broker in advance to place the trades on your behalf. You do not have to participate in auto-trading if you prefer to place the trades yourself.

Aren’t yearly returns over 100% really unrealistic?
If you believe the talking heads on these TV (BS) analysts’ shows and other “financial gurus” then yes, triple-digit returns per year are absurd. Why do you think they are doing TV shows? However, most of these gurus and analysts do not trade themselves. Our traders actually trade every day. The large investment firms and brokerage houses really don’t want the public to know that high returns are even possible. They would rather take your money, give you a low return expectation and keep the rest for themselves.

High returns also come with higher risk. Don’t expect your mutual fund to earn 100% since the risk is quite low (Well, that is not quite true right now. Mutual funds right now are very risky. This is a great reason to make the most on you investments now and consider our services. The traders we work with trade aggressively. The risk is higher but so are the rewards, and that is why we offer a Guarantee.
 
Will I ever lose money?
The only investment that is guaranteed not to lose money is the one you never make. That is why we spend so much time evaluating each program and it’s validity in the current markets. We decide which will work best for ourselves, we then pass that information on to our clients. Everyone that invests will lose and will win. It is our experience in this sector that puts us above the rest. This is why we have a Guarantee. 
 
Should I invest all my money with one trader or choose several?
Each of our traders has a unique style of trading – each with its own risks and rewards. We believe that everyone should hold diversified investments, and not keep all their eggs in one basket. Speak to one of our investment specialists who can help determine which traders are right for you.

What size trading account do I need to get started?
We are told by the traders they recommend a minimum of $10,000.

Can I invest my retirement account like an IRA or 401K?
Yes, in order to invest all or a portion of your retirement account, you will need to do the following: Work with a retirement account custodian who can help you setup a self-directed account for you so you can still maintain your tax shelter status.

Can you guarantee I will make money?
We wish we could (if we could we would rule the world), but we can’t control the markets. Nor can we control the outcome of each and every trade. However, historically our traders have made money for our subscribers year after year. We see no reason why they shouldn’t continue to do so.
 
What is the difference between stocks, commodities, futures, options, Forex, and ETFs?

Stocks: A stock is simply a share in the ownership of a company. You can buy hundreds, thousands or millions of shares in a company through a brokerage firm.

Commodities: A physical substance, such as food, grains, oil, and metals, and which investors buy or sell, usually through futures contracts. The price of each commodity is subject to normal supply and demand. Examples of commodities are wheat, corn, lean hogs, gold, and heating oil.

Futures: A standardized, exchange-traded contract which requires delivery a commodity, bond, currency, or stock index. The contract includes the obligation to buy at a specified price, on a specified future date. Futures contracts are traded based on prices moving up and down as a result of supply and demand.

Options: The right, but not the obligation, to buy (call option) or sell (put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time.

Forex: Global market where world currencies like the US Dollar, Japanese Yen, and the British Pound are traded and their conversion rates are determined. It is the world's largest financial market in on average, some one and one-half trillion dollar worth of currencies are bought and sold every day.

ETF: A fund that tracks an index, but can be traded like a normal stock. ETFs bundle together the securities that are in an index. ETFs can be bought and sold at any time during the day unlike most mutual funds.

Index: Indicator for a group of securities. There are many different kinds of indexes.

What kind of risk is involved in this kind of investment?
Each trader takes different risks based on their trading style. Most of the trader we work with risk a lot less that the average 50% loss most investors have seen in their regular portfolios. The best way to clearly understand the specific risks involved is to contact an investment consultant and ask about the trader who interests you.

What kinds of trading order types are there?
Here are the most common order types:

Market order: Order to buy or sell at the current best price, whatever that price may be. In a fast moving market orders will always get filled, but not necessarily at the exact price that the trader intended.

Limit order: Limit orders are orders to buy or sell at a specific or better price. Limit orders may or may not get filled depending upon how the market is moving, but if they do get filled it will always be at the chosen price, or at a better price if there is one available.

Stop order: Stop orders are similar to market orders, in that they are orders to buy or sell a contract at the best available price, but they are only processed if the market reaches a specific price. Stop orders are often used to exit the market –either to take profit with “profit stops” or to protect large losses with “stop loss” orders.

GTC: Good ‘Til Cancelled. This is basically an order that expires after a period of time if it does not get filled at the price the trader requests.

What is the difference between ASK and BID?
The ASK is the price the broker is willing to sell the instrument to you. The BID is the price the broker is willing to buy the instrument from you.

Once I sign up, what should I expect?
After you complete the necessary paperwork, you will need to fund your account. You can use the broker of your choice, or select one of our trader brokers who are familiar with auto-trading arrangement. When the trader sees a strong trading opportunity or recommends closing a trade, or adjusting a position, he alerts you with exact trading instructions via e-mail or website. If you are enrolled in auto-trading, then this same signal will be sent to your broker who will place the trade.

How can I fund my account?
Your best bet is to check with your broker. Brokers typically prefer wire transfers or personal checks to fund your account. They normally do not accept cash, money orders or cashier’s checks.

I’m thinking about opening a brokerage account.  If the brokerage goes bankrupt or closes, will my account be protected?
Most brokerages carry Securities Investor Protection Corp. (SIPC) insurance, protecting your account for up to $500,000, including up to $100,000 in cash claims. (Many brokerages carry additional insurance, too.)  This doesn’t protect you against a loss in value of your holdings, though.  Instead, it protects against the financial failure of broker-dealers.  

How do I get started?
Please call (877) 872-3351 to speak with an investment specialist who will review each of our traders and your investment options with you.