Michael Carr recently released a presentation with the heading “The Greatest Investment Strategy for the Next Decade” where he revealed a new tool called Strike Zone.
He said that it has already earned his followers returns of 364%, 323%, and 496% in as little as four days.
Great as this sounded, I decided to take a closer look at his investment strategy and decided to write this article to reveal everything to you concisely in case you were curious as to how it works.
I hope you will be in a better position to decide whether Carr’s approach is what you are looking for.
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What is Michael Carr’s Strike Zone?
In his recent webinar with Corrina Sullivan, Michael Carr debuted his “Strike Zone” trading tool to the public while also promoting his investment advisory service, Precision Profits.
Many other editors have released presentations that are basically advertisements for their advisory services. We’ve seen it here before with pitches like Eric Fry’s Smart Money and Jeff Brown’s Project Xi.
He promotes “Strike Zone” as a trading system that you can use whether you are a novice or a seasoned trader.
With it, he claims that you can earn double- and triple-digit gains in a couple of days.
A recurring theme in the presentation is that Mike keeps mentioning that he was in the U.S. Air Force and that he worked advanced weapon systems with DARPA. Here is a short excerpt on that:
“Mike was the commanding officer of a team of nuclear missile architects during the Cold War…
For 12 hours a day, he was locked behind 2-foot-thick steel doors 60-feet underground in a top-secret bunker in Nebraska.
And he had one job that he had to carry out flawlessly.
He was in charge of running daily nuclear attack missions…
Four-minute phone calls in which his team of eight elite engineers was required to run through a three-page checklist and “launch” the U.S. nuclear arsenal.”
DARPA is a top-secret government program that is credited with innovations like GPS, Google Maps, and the internet among other important technologies we use today.
From that excerpt, we learn that he was pretty close to the nuclear program and, therefore, had to know a thing or two about how it worked.
The skills and experience influenced how he developed his trading system. More from the presentation:
“He took those very same formulas that he developed with DARPA to launch our nuclear arsenal with 100% accuracy…
And he devised an investment system so accurate that he could continue his life of service.”
So let us dissect how Mike’s trading system works.
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How Michael Carr’s Strike Zone Works
In the presentation, he spends a large chunk of the time explaining how the trading tool works while also sharing examples of trades it has successfully spotted. The most eye-catching ones are the ones he mentions at the beginning of the presentation that took a couple of days to materialize:
Michael says that he built the system using three sophisticated algorithms, which in turn gave rise to the Strike Zone Indicator.
To put it simply, this indicator has a blue line and a dotted line. When the two lines cross, a stock enters its strike zone. Two things happen depending on how the two lines cross:
- If the blue line crosses ABOVE the dotted line, the stock is about to soar.
- If the blue line crosses BELOW the dotted line, the stock is about to plummet
In each case, Mike says that you should expect to earn returns on your investment.
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So, how does it work?
The proprietary system is based on what he refers to as “the four rules of engagement for successful trading.” They are as follows:
Rule 1: Target the perfect stock
Here is what he said about identifying his ideal picks:
“I make sure the stock follows a very distinct cyclical pattern.
My algorithm goes back 15 years to identify stocks that consistently go up at the same time each year.
What I’m looking for here are stocks that move up during the same exact month, every year, at least 70% of the time.”
The system looks back at historical data to identify consistent trends.
Rule 2: Lock in the stock’s trajectory
Once it maps a pattern, it extrapolates a likely pattern in the present. He says:
“Using my system, I track the stock’s relative strength. What I mean is I’m tracking its trajectory and momentum.
It must be trading above its 26-week average.”
The system uses momentum (moving averages) to determine the precise timing of the likely jump or dip.
Rule 3: Detect the moment of max velocity
He explains it as follows:
“I want it to reach maximum velocity, or peak momentum, just as it’s hitting the strike zone.
To do this, I narrow the 26-week moving average down to its 20-day moving average.
The stock must be trading above its 20-day moving average … or we won’t touch it.”
Rule 4: Spot the strike zone and launch the trade
This is the part where the blue line crosses the dotted line
Michael Carr Trades Options
When he finds a stock that meets the four criteria, he trades its options contracts rather than the stock itself. To pick the right one, he finds the one that has the potential to earn at least 100% gains.
He prefers them to stock for the following reasons:
- They are cheaper
- They earn more returns
- They are less risky i.e. since you invest less capital, you will lose less money in a bad trade.
- You can make money on both a bullish stock and a bearish one. When a stock plummets, you make money by buying put options.
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Who is Michael Carr?
Michael (Mike) Carr is an investment guru who works at Banyan Hill Publishing; he is one of the few Chartered Market Technicians (CMT) working for the publisher. He edits three investment newsletters, namely Precision Profits, Peak Velocity Trader, and One Trade.
Michael works as a trader and writer full-time and has twenty-five years of experience in the financial services industry. He edits Technically Speaking, a CMT Association newsletter.
When he joined the industry, he was working as a financial consultant for Merrill Lynch. He went on to work as a director at UBS Wealth Management, a money management firm in Austin, TX, before becoming a vice president at SWS Group, a regional bank serving the Southwestern states (including California and Texas).
He is currently a partner and lead advisor at FMP Wealth Advisers.
Carr founded The Consistency Initiative in 2011 and uses the platform to write and speak about “the new brain science of achievement.” He is also an avid motivational speaker.
Michael is a retired U.S. Air Force Lieutenant Colonel.
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What is Precision Profits?
Precision Profits is the investment advisory service built around the Strike Zone indicator. When you join, you will be receiving option trade recommendations gleaned from the Strike Zone trading system.
You receive trade alerts, weekly market and position updates, access to the Precision Profits model portfolio, Mike’s Trading Manual, Mike’s Options Training Library, and access to the encrypted website.
Subscription Fee
$1,495 for one year.
Refund Policy
They DO NOT REFUND your money in case you decide to cancel your subscription.
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Michael Carr’s Strike Zone Conclusion
Mike claims to have spent $300,000 and dedicated 14,000 hours to develop the Strike Zone, which he says is capable of accurately predicting the direction in which that stock is going to head. With that information, he trades the options that are linked to those stocks.
It is an all-weather system because you can make money by trading options whether a stock is rising or falling.
Now, we can’t read much into the examples he presents during the pitch because we do not have a way of knowing whether he placed them and if he did, they don’t guarantee that he will be accurate with future ones.
So, you should take everything he says with a grain of salt and if you decide to invest in his recommendations, only invest what you can afford to lose.
Before you go…
Want to see my no.1 recommendation for making money online?
This made us 6-figures in the last 3 months:
Go here to see my no.1 recommendation for making money online