This week the Maven inbox has been inundated with queries and comments on a new index trading system: the Daily Index Trader system.

There’s been a fair bit of buzz generated by those who’ve already started trading it. Those who started on 12th of August have already had 23 winners and just 3 losers – so they’re off to a flying start.

And there have been a lot of questions from traders who are still sitting on the fence.

I can understand why this strategy has caused a few raised eyebrows – there are some pretty bold claims that come with this system – claims like 927% in the last year, and 133% in the last two months.

So, I decided to sit its creator, Martin Carter, in a dark room, shine a bright light in his face and ask him some serious questions. (Well, I called him up for a chat.)

But before I tell you what Martin had to say, I need to let you know that there’s still a chance to get onto the Daily Index Trader priority list. Follow the link below to ensure that you’re entitled to the special trial offer of this system.

The index trading system that’s creating a buzz

Me: 133% in 2 months, 927% in the last year – these are some pretty bold statements. Are users really achieving this level of success?

Martin: It doesn’t surprise me that people are sceptical about these figures – they do look too good to be true. However, Steve, I know you’ve seen my trading account, so you can’t be in any doubt about them! As far as other traders matching these results, I’ve not come across any problems there in the testing process – with all testers reporting percentage profits very close to my own.

Me: Are there any additional costs? Will traders suddenly find that they’re not getting the kind of returns you advertise because of spread costs and financing charges?

Martin: Not at all. All my trading results factor in the cost of the spread – there are no hidden nasties. Very, very occasionally the trade isn’t closed out my end of day (it’s happened less than ten times in the last year). When this does happen, there will be a small financing charge applied by the broker.

Me: There’s been a real buzz building about this system on internet forums this week – who are all these people who are already using the strategy?

Martin: I released the system to a very limited number of traders a few weeks ago, via my publisher. I’ve also had a band of testers working on the strategy through the summer – I’ve had them sworn to secrecy until the test period ended this week, but I know that a few of them have been too excited about the system to keep quiet!

Me: If the theory behind Daily Index Trader is that you go short on one index and long on another – how do you make a profit? Don’t the two trades just cancel each other out?

Martin: Daily Index Trader is based on pairs trading, but it’s got a twist in its tail that means that the sum of the two trades is usually a healthy profit (at the moment our success rate is 76%).

Me: A lot of traders can’t be at their screens all day – exactly how much time does Daily Index Trader take, especially when you’re new to it?

Martin: It really does only take 5 minutes (perhaps 10, while you’re getting used to it). Then you can switch off and leave the trade to its own devices.

Me: Don’t you need to manage the trades?

Martin: No. Once your trade is placed, it can be left alone. If you prefer to manage your trade, there’s no harm in that – and you may even earn yourself some extra profits. However, all the trading results that you see are based on un-managed positions.

Me: So how do you manage risk on your trades? Is there always a stop loss in place?

Martin: Yes, I always trade with a stop loss, and use a profit limit. This means that I know exactly what my risk is on each position, and where I’ll take my profits.

Me: What time of day does it trade? A lot of traders are concerned that they won’t be able to fit it around their working day.

Martin: I always place the trade at 9.15am, which is a time that suits me (and it’s what all my trading figures are based on). After quite a lot of research I do believe this is the best time to trade and I wouldn’t recommend trading much before this, however the theory does still apply later in the morning. I’ve even got a tester who’s been using the strategy at different times (sometimes placing more than 1 trade a day) – and he tells me that he’s still achieved a success rate of 76%.

Me: How much do you need to get started?

Martin: You can start trading with as little as £100, using stake sizes of between 20p and 37p. In fact, I recommend that anyone trying out a new system starts small, while they find their feet with it. With the kind of returns we’re getting on Daily Index Trader, a small fund can quickly grow.

Me: Do you have to pay tax on your profits?

Martin: Daily Index Trader uses spread betting, so George Osborne can’t get his hands on your profits! However, if you’re trading outside of the UK, different tax regulations will apply, and you’ll need to use CFDs.

Me: How long do trades last?

Martin: Trades are usually played out within a few hours. Very occasionally they’ll run into the night, even the following morning (once).

Me: What kind of support do you offer? How can traders check their progress against yours?

Martin: Each week I’ll send out a trading update, which will cover any pertinent issues that have arisen that week. The members area of our website contains the figures for all our trades, so that members can compare their results against mine. Of course, I’m also on hand to deal with individual queries by email.

Me: Can Daily Index Trader be applied to other trading instruments, like forex or shares?

Martin: To be honest, I’ve been enjoying such success with indices that I haven’t collected any significant data for using this in other areas. However, it’s something that I’m currently looking into. In theory, I really can’t see why Daily Index Trader couldn’t be applied to any closely correlated prices. Watch this space …

Any questions?

And the feedback I’ve been hearing from users remains extremely positive – with plenty of praise about profitability, usability and Martin’s support.

If you’ve any further questions you’d like me to grill Martin on – just let me know.

And remember, unless your name is down on the Priority List, you won’t be entitled to the special pre-publication trial offer, so get your name down (if you haven’t already).

Click here to ensure that you’re sent details of the Daily Index Trader trial offer.

In the next seven days …

We can expect to see some more gloom and doom Stateside next week. Tuesday is expected to reveal that the number of new resisdential buildings that began construction in August is up by just 1.5% on the previous month – this is still 10% down from Q1 levels.

Later the same day, the FOMC is predicted to hold interest rates low – a sign of their concern over economic weakness.

And things are unlikely to look much brighter at the end of the week, with new home sales remaining weak (average sales in the last 2 months will be at their lowest since records began in 1963)

The one ray of light could be jobs data on Thursday, which will hopefully reiterate last week’s fall in unemployment.

This side of the Atlantic, we’ve the MPC minutes out on Wednesday – we’ll find out whether Andrew Sentance has turned more members over to his way of thinking, and what sentiment is on restarting quantitative easing.