More About KD (Part 2)

Today I will conclude my complete detailing of KD (not Kevin Durant).

KD has an interesting business model that compliments his personal agenda quite well. As mentioned in this third paragraph, developing trading systems is hard. If you purchase his product, then you are eligible to participate in his program. The program collects viable trading strategies that satisfy his system criteria. If you submit a viable strategy that is subsequently profitable over the following six months, then he will give you at least one (sometimes more) passing strategies (e.g. from other customers) from the same or different month in return. With this business model, his own customers feed him viable strategies! This clearly augments his personal agenda as a full-time trader. The program also serves as a productivity multiplier for his customers; for the time it takes to develop one passing strategy, more will be returned.

I cannot recommend you train under KD for one and only one reason: I have not yet had success finding any viable strategies. I mentioned the “specter of scam” in the fourth paragraph here. In case you haven’t looked around lately, fraudulent sales pitches abound in the financial industry. I have written about CNBC’s American Greed (e.g. here and here). I’ve also posted on misconduct in the financial industry. I have to wonder whether KD is bogus, too (and he would want me to based on the 5-part mini course discussed last time). It wouldn’t be the first time a nice personality has engaged in criminal behavior.

The possibility also exists that what KD teaches doesn’t work for the vast majority of his customers. If this is true, then whether he has an ethical obligation to disclose while marketing his wares is a matter for debate.

KD rates well on one particular website that focuses on trader education programs. This site appears to review nearly 300 different education programs (and services). The founder claims to be a once-upon-a-time charlatan who did cold calling sales to swindle investors. He claims to have spent nearly three years in prison for these efforts and has since become one of the “good guys” who knows fraud, Ponzis, and optionScam.com when he sees it.

Interestingly, about the only positive review I can find on this site focuses on KD. A couple public comments linked to that review suggest KD owns the site. I can’t imagine KD would have time to do all the reviews on that site, maintain the entirety of his online presence, and trade for a living. No way.

I suppose he could be delegating responsibility to an entire team, though. Hmmm…