Omniacs please read this.

Hello OMNIACS,

If you found this website via Google or someone posting it the OMNI Rooms, please take the time to read it. There is a lot of things that Oscar wont tell you, about his past, about how he gets to his entries, how much he charges his clients, what his performance.

First the entries, those are simple, they are pivotpoints. Oscar’s favourite pivot is the exact middle between Support-1 and the Pivot when he is looking to buy or when he is going to sell he will look for the exact middle between Resistance-1 and the Pivot. Sometimes he goes for S1/R1 or the Daily pivot when the market moved already over the midpoint during midnight trading. You can easily predict the omni the night before by chosing the pivot approximately 5 points from the print around midnight and as direction you can pick the trend from the day before. You can check it yourself, calculate the pivots or go to website where they do it for you like www.mypivots.com. The OMNI moving average is just a simple moving average, which Oscar wont teach you what the setting is. Most likely because he curve fits it continuously. The 89 and 49 period average seems to be popular with Oscar. In this screenshot, taken during a class he gave, he uses a 86 SMA, as shown while he accidentally left the bar open where the SMA settings were displayed. /edit:  Oscar suddenly changed the name of the Omni Propietary Moving Average to the Omni Trading Academy Propietary Average, same thing same settings.

Second, how much he charges for his VIP Clients, this is always starting at 50 dollar round trip, i admit, you can negotiate this down with Oscar, but still 50 dollar round trip is hugh. At cheaper brokers like Mirus (Dorman platform) or Interactive Brokers you pay around 5 dollar round trip all-in. So calculate yourself, after how much time is premium room cheaper? Oscar gives out average 1 -2 trades a day. So after 8 trades you were better off just taking a premium account, you will be paying around 2000 dollar per 10k USD account. Is there actual benefit from being Oscar’s client? I and many others as shown below this post and on fadethetrade.com. People are complaining about no extra attention, no answer to simple questions about written disclosures about the costs. The 50 dollar is why Oscar wants people to call in to the office to ask the commissions. There is not much negotiation upfront, always pay 50 r/t the first month.

Thirdly, his past. There is a lot of vagueness at best. It start’s with an article in the New York Post.

“The move comes a year after Carboni failed to make enough money from trading to pay for his seat on the exchange, began missing mortgage payments and racking up thousands of dollars in credit-card debt.”

Also when you look into the New York Court, WebCivil E-Court database and search for Carboni. You will find a lot of court-cases between Oscar and Credit card companies like American Express, Companies who buy up debts and utility companies. Oscar always said that OMNI has fed him for 27 years, although he sometimes told that he got screwed by a companion. His NFA record shows he was registrated at a company called CAL financial corporation until 2007, when the company was barred by the NFA because they failed to uphold high standards of commercial honor and just and equitable principles of trade. I dont know what to think of it, it is vague at best. It is weird that a man who always brags that he can trade on his own got him in such severe debts and got him magically out of it when he started the OMNI trading academy. Which also is kinda vague, as Oscar’s has older trading websites, here , where he has been giving out trading recommendations for years without mentioning OMNI. Vague at best.

Fourthly, performance. Oscar’s biggest worst-kept secret. Oscar keeps for you a nice system called “OMNI review”, it got all the past OMNI recommendations, but you really can’t get a good overview from it without spending weeks on it. For example Oscar has a habit of not making a “We are stopped out” flash update lately, so you need to have a chart next to you of each contract to see how much he made/lost. Even if it has a stopped out flash, you cant tell how much you could have lost on such trade. Meanwhile the winning trades get lots of attention. There are a couple of spreadsheets that give a better overview  of the performance of OMNI and it ain’t really good.

May June July August September October November December 17th of March 2009 to 16th of April 2009

From what i have seen it is, definitely impossible to make money when paying 50 dollar round trip, the best month i have seen was 3-4k per two lots and than you got to pay about 2k in commissions. If you are taking trading recommendations from your broker, you have to keep in mind that your broker might be giving those recommendations mainly to get commissions and not care so much about the actual profit/loss.

Oscar also might be paper trading, there is some evidence pointing in that direction: One screenshot made while he left open his Glance Desktop sharing, showing a paper trade account actively being traded. Why would a 27 year seasoned trader bother to manage a paper account? And the other a screenshot made during one of Oscar’s youtube videos, where he claims to be placing a real order.

Education, is an aspect that i think is totally lacking in Oscar’s trading academy. Sure he we learn you how to spot some channels and head and shoulders on a daily chart, but it’s so basic, nothing really useful. He wont learn you how he comes up with his entries, how he did his 688 projection (“Not a call traders, just a projection” quote Oscar’s video March 2009). And it isn’t really like it is real difficult stuff. His 688, was the 50% retracement between the 1974 low and the 2007 high. I wonder why a guy that says he doesn’t do it for the money and wants to teach people, protect people from sharks, hides so elementary stuff behind proprietary moving averages and weird jokes about his dog.

To conclude it, i don’t want you leave Oscar immediately, in fact i did speak to one or two OMNIACS who are genuinely pleased by Oscar, but these dont follow the OMNI trades exactly, but i want you to stay vigilant, keep a performance log yourself, look on other educations websites like investopedia, don’t ignore Pivots cause Oscar says they are outdated. Please keep thinking yourself.

UPDATE

A court case report about an event involving Oscar in December 2005.

Oscar seemed to be back on the floor in 2005 and was a filling broker in the metal pits on COMEX. In the fall of 2005 he was setting up to be Ira Epstein’s filling broker in the metal pits. Some pit broker’s clerk made a mistake that cost 390k USD. Oscar sent an e-mail to his friend Ira Epstein warning him to no longer send orders to RJO because they are too busy and that it would be better to have Oscar fill the orders. Somehow this email ended up at Bob Lake, an employee of RJO. He send the following email to RJO brokers.

“I do not do business with scumbags that try to generate business off other people’s perceived misfortune. This little prick can twist in the wind before he touches one piece of RJO paper. I am in the process of burying this guy in the pit and on COMEX in general, let’s see how good his fills are when no one will trade with him.”

This resulted in Oscar not being able to do business anymore on the floor and got “black-listed”. Then he sued Bob Lake and several employees for 20 million dollar in damages.

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