Fall 2006

2 Maximize Reward by Mastering Risk

3 Dramatically Increase Profi ts through Position Sizing

4 The Portfolio Simulator Interface

6 MORE Money Management Features

8 Mastering Money Management Seminar

9 Forex Trading Supported in OmniTrader

10 Woodie’s CCI Plug-in for OmniTrader

11 OmniTrader 2007 Upgrade Special Offer

NIRVANAThe State Of

INSIDE

“OmniTrader 2007 is destined to change the fortunes of more OmniTrader users than any release in the history of the company.”

- Ed Downs, CEO and Founder Nirvana Systems, Inc.

WOODIE’S CCI Plug-in:Powerful new plug-in for Real Time and End-of-Day Traders.

Advancing the Art of Money Management

OmniTrader 2007Maximize REWARD by Mastering RISK!

Maximize REWARD by Mastering RISK!

OmniTrader 2007 is destined to change the fortunes of more OmniTrader users than any release in the history of the Company. I know that’s a bold claim, but I can back it up. It all has to do with knowing how much to invest in your trades. And the difference in results is astonishing.

There are generally three kinds of traders – The Plunger, The Timid, and The Successful Trader. Let’s discuss what separates Successful Traders from those who continuously struggle to make money.

The Plunger wants to make a lot of money very quickly. He might have a $10,000 account and uses all of it to buy Call Options or S&P Futures contracts on full margin. It only takes a short streak of bad luck for him to lose his trading capital, and he usually does – more than once.

The Timid either stays on the sideline or trades such small positions relative to his account that he never gets anywhere. He may have a $100,000 trading account but rarely invests more than 10%. So evenif he makes 20% on his trades, his account only advances by 2%.

If you read Market Wizards by Jack Schwagger, you will realize that success has just as much to do with “How much do I invest?” as “When do I trade?” In-deed, most of the Wizards’ success has to do with how they manage risk. And that’s where OmniTrader 2007 can help you become the successful trader that you want to be.

There are many books on the subject of position sizing containing heady terms like Optimal f, Kelly Crite-ria, Fixed Fractional and tons of math. Now, there’s a much easier way…

OmniTrader 2007 is able to calculate the optimal trade size for ANY Strategy or series of trades in your brokerage account. It automatically compares the results from multiple methods and selects the best one. The answer is linked to Trade Plans, so when you place a trade you can see how many shares or contracts you should buy based on the optimal method for the securities you are trading and the Strategy you are using. And of course, it’s 100% automated through OmniTrader’s To Do List.

The new Portfolio Simulator is the All-Star feature of the 2007 upgrade. And there are additional new Money Management features in OmniTrader 2007, including the addition of OmniScript to Trade Plans and the new Reward:Risk tool.

The OmniTrader 2007 upgrade package includes two new seminars and our implementation of Woodie’s CCI. We applied the new Portfolio Simulator to this Strategy and others—take a look at the equity curves on pages 3 and 10 to see how much difference it can make! With the addition of Forex Trading support, this is truly one of the best packages we’ve ever offered. I am very confi dent that if you apply the new position sizing tool to your trading, your results will improve. It’s the missing link you’ve been waiting for. And as always, your satisfaction is 100% guaranteed. Get OmniTrader 2007, and start trading like a Wizard!

Thanks and best of luck in your trading…

Ed DownsCEO and FounderNirvana Systems, Inc.

OmniTrader 2007

Dr. Van K. Tharp, a leading expert on Money Management says, in Trade Your Way to Financial Freedom, ‘the most overlooked yet important aspect of trading is Money Management.’ And within that topic the key is position sizing.

How true! Once we get a Signal and decide to trade it, we have to decidehow much to invest on the trade.Our real world results will vary dramatically depending on how we answer this question.

OmniTrader 2007 Provides the Answer!Position sizing is an art in itself, which is why so many books have been written on the subject. Getting the answer is quite complex, having to do with the inherent Reward:Risk dynamics of our trades and number of opportunities presented. The way to get the BEST answer is to use an equity curve simulation on historical trades. The good news is, we’ve automated the entire process in OmniTrader 2007 through the new Portfolio Simulator.

Equity Curves Provide the Big PictureEquity curves are based on simulated trading and provide the “picture” we need to evaluate a Strategy on historical trades. Dips in the equity curve are called “draw-downs” and the point the curve reaches at the end of the process is called “fi nal equity.” Final equity

is important, but if the draw-downs are too big, we are risking too much. The equity curve not only tells us how much the account would have grown using a given Allocation Method, but also how much draw-down to expect, and how often draw-downs occur. While it cannot guarantee profi ts in the future, we can reasonably expect our trading to improve using the best Allocation Method. How do we determine the optimal method? By using OmniTrader 2007’s new Portfolio Simulator!

To demonstrate the benefi t of using the proper method, we recently tested

the iTLB2 Strategies in the new Portfolio Simulator. If we had traded the Strategies using a Fixed Dollar Amount of $2000 for every trade, we would have realized a gain of 80% over a four year period. However, by using the Dollar to Equity Method (methods are discussed on page 4), the results would have increased almost 400 percent!

Dramatically Increase Your Profi ts!

Knowing HOW MUCH is Just as Important as Knowing WHEN

3

“The most important thing is money management. Anybody who is successful will tell you the same thing.” -Marty Schwartz, Market Wizards

Performance of the iTLB2 Strategies improved dramatically using the $ to Equity Method compared to using the Fixed $ Amount Method of $2000 per trade. (Tests were run on the S&P 100 stocks over a four year period.)

Almost 5 Times the Profi ts!Using $ to Equity Allocation Method

Allocating a Fixed

$ Amount per trade

Position Sizing is all about risk management, but there is not just one answer to the question, “How much risk should I take?” Given two investors with $10,000 to invest, one might only want to risk losing $500 on any single trade while the other might be comfortable risking $2,000 in return for increased profi t potential.

The new Portfolio Simulator can be confi gured with inputs that tell it what your risk tolerances are. Establish “Worst Draw-down” and “Largest Loss” in the Simulator control, and then simply click “Analyze”.

The Simulator will use these inputs to fi nd the optimal Allocation Method for the trades you are evaluating. Depending on the profi t/loss characteristics of your trades, a specifi c Method will emerge as optimal.

7 Allocation Methods Provided!The new Portfolio Simulator lets you realistically compare the results of seven different Money Management approaches:

Fixed Trade Size Fixed $ Kelly Criteria Size to Equity $ to Equity % of Equity Optimal f

The best Method to use depends on the profi t and loss characteristics of the individual trades being examined. Optimal f shows the best case results using a fi xed percentage. The Kelly Criteria attempts to match the Optimal f without using optimization, yielding a better answer for actual trading.

4

MAXIMIZE Profi ts through Intelligent Position Sizing

Strategies work the best when the proper Allocation Model is used to trade them. The Summary view shows equity curves from ALL Meth-ods that have been activated. Click on a Method tab at the top of the interface to see the specifi c statistics and equity curves for each one.

Equity Curves for

Each Method

Settings Used

The Portfolio Simulator Interface

Method

5

The $ to Equity Method allows the adjustment of trade size based on incremental performance of the Strategy. The % of Equity Method allows users to experiment with different fractional allocations to see how they compare. Each of these Methods allows for the management of draw-downs, helping you match the right Method to your risk tolerance.

It’s AUTOMATIC!Activate all the various Methods you want analyzed and the Simulator will automatically fi nd the best one to use, based on the trades that are being evaluated.

There are many ways to use the Simulator. Reviewing the equity curves generated by the Simulator gives you insights into whether the Strategy you are using is robust enough to be traded in a “mechanical” way (trading all the Signals and exits) or in a “prospecting” mode – confi rming individual opportunities. The smoother the equity curves are across Methods, the more robust the Strategy is.

Evaluate Simulated OR Actual TradesYou can also use it to evaluate ACTUAL trades you have placed with your broker. We added a new “portfolio import” feature so that you can import trades from your brokerage account, to fi nd out how you could have improved your performance.

The analysis generates an equity curve for each Method showing you which one is best for the given trades.

Ready for Action!When you are ready to place a trade, the Trade Size Calculator, discussed on the next page, is activated from the Trade Plans interface and shows the proper position size ranked by Allocation Method – automatically.

Statistics for the Selected Method

Trade Size Calculator

NEW Trade Size CalculatorTrade Plans have access to the results of the Portfolio Simulator. This means we can see precisely how many shares or contracts to buy or sell.

When you see a Signal you want to act on, activate a Trade Plan and click on the Trade Calculator button to bring up the Trade Size Calculator, shown to the right. On the left side of the dialog box you have the optimal trade size based on the results of the most recent simulation. Just click the quantity to load it into your Trade Plan!

No other product has an integrated Portfolio Simulator that makes determining optimal trade size this easy. It’s just one more example of how OmniTrader automates your trading so you can focus on making money.

OmniScript in TradePlansAnother major enhancement in OmniTrader 2007 is the addition of OmniScript to TradePlans to help with the customization of entry and exit conditions.

Using OmniScript, we can add specifi c checks based on any indicator to decide what to do next. For example, the following OmniScript condition monitors the highest high of the past 14 bars and waits until that level is crossed before trading.

If C >= Highest High (14) then Buy 100% Market

You can also check conditions for other symbols. For example, we can easily insert a step that closes our Long Positions when an Index loses momentum during a market correction.

If Momentum($SPX) < 0 then Sell 100% Market

We are sure this powerful feature is going to lead to even more improvements in our Strategies this year as users experiment with it.

6

MORE Money Management Features!

Highest High Test causes a Strategy to wait until the recent high is broken before entering a trade. This is useful to ensure that a true breakout condition is estab-lished after a Signal is generated.

Automatic Trade Allocation: After a Portfolio Simulation runs, you have access to the best trade size calculated by each Method in the Trade Plan interface. The Trade Size Calculator will tell you how many shares or contracts you should buy or sell for each Method, with the #1 Ranked Method at the top. You can also enter a manual amount or have the program round the share quantity to the nearest 100 shares.

7

Reward:Risk is another Money Management tool that helps in establishing Profi t and Loss Stops. The idea of Reward:Risk is simple – set your Profi t Target (expectation) to a given multiple of your Loss Stop. A good value to shoot for is 2:1. If you consistently set up your trades with this ratio, you only have to win on slightly more than 1/3 of them to make money (see table below).

For this release, we added a Reward:Risk tool to help with this assessment. When you are ready to trade, attach it at your Entry level and stretch it until the lower line matches your Stop Loss. By visual inspection, you can quickly determine if the levels are reasonable – “Does this chart have suffi cient history to indicate that a move to the target is likely to occur?” The Reward:Risk tool makes it easy to SEE the relationship.

The chart on Disney (to the right) is an example of a trade that met our Reward:Risk criteria. This new tool helps you maintain your target Reward:Risk ratio on every trade.

NEW! Reward:Risk Tool

122.90

23.59

24.96

2

After this Buy Signal was generated on DIS, we quickly applied a 2:1 Reward:Risk metric to determine how likely the chart was to reach the target Reward, given our risk level established at Support. Clearly, the chart had plenty of movement to suggest such a move could occur, and it did – the profi t target at 24.96 was quickly reached.

The Profi t Power of Reward:Risk!

Most of us are looking for high accuracy in the Systems we trade. But did you know that most futures traders are very happy with Systems that are 45% accurate? This is true because of the Reward:Risk they maintain on their trades.

It is a fact that if all our trades have a Reward:Risk ratio of 2:1, we only need to be right 40% of the time to earn over a 100% a year (see table to the right).

If we establish “risk” as the nearest support level (for a Long trade) and make sure that our winning trades move at least twice (2x) that distance, we will see these profi ts un-fold over time. You can prove it to yourself in OmniTrader’s lab mode Simulator – run a lab mode session for a year on your favorite Strategy using a 2:1 Reward:Risk ratio and see how it performs. You will be amazed!

ACCURACY ANNUAL PROFIT* 30% -53.26% 35% 0.19% 40% 114.73% 45% 360.22% 50% 886.39%

* Profi ts based on 2 trades per week with 5% of equity risked on each trade.

Risk

Recent Support

Reward Level

Risk Level

Entry

Visually Measure R:R—Quick and Easy

Reward

Accuracy vs. Return at 2:1 Reward:Risk Ratio

8

All traders know that to be successful they have to minimize their losses and maximize their gains. Most traders focus on Stop placement to achieve this goal. But just as important, is the decision on how much to risk on each trade.

This seminar thoroughly covers the topic of Position Sizing, reviewing various Allocation Methods, from Fixed Trade Size to the Optimal f. Different Methods work on different Strategies. When you see WHY some Methods work well in certain situations, you will have more confi dence in your trading – and that’s worth a lot.

In the last section of the seminar, we review the new tools in OmniTrader 2007, relating them to the earlier material. Using the software, I apply the Portfolio Simulator, Trade Size Calculator and the new Reward:Risk tool so you can see precisely how to integrate them into your trading regimen.

By the way - this seminar is NOT a math course! We look at real world examples and present the material in a way that avoids formulas and calculations. Us-ing the material in this seminar, you can understand and apply the Art of Money Management like a pro. Mastering Money Management will empower you with the information you need to improve your trading to the greatest extent possible through intelligent Position Sizing and risk management.

Money Management vs. Risk Management The Big Difference!

Improve Almost Any Strategy Using Proper Position Sizing

Biggest Profits with the Least Risk

Allocation Methods – Which is Best? Fixed Trade Size Fixed $ Kelly Criteria Size to Equity $ to Equity % of Equity Optimal f

The OmniTrader Portfolio Simulator Setting up the Simulator Reviewing the Results Trading the Proper Allocation

Automating the Process

Seminar Contents

NEW! Nirvana Education

MASTERING Money ManagementNEW Seminar by Ed Downs

Introduction to the Forex What is the Forex? Advantages of Forex TradingUnderstanding Currency Pairs How Currency Pairs WorkUnderstanding Forex Quotes Pips, Spreads, & Commissions What is a Pip? Forex Lots Contract Spreads Types of ContractsThe Major Forex Contracts Majors Daily Char ts How the Majors MoveThe Global Currency Market The Forex Day The Forex WorldUsing OmniTrader to Trade the Forex

Seminar Agenda

9

Forex stands for foreign exchange market. Unlike futures currency contracts (such as December Yen), the Forex is based on the cash market – the instantaneous exchange value of each currency.

Commercial and Investment Banks trade currencies as a service for their commercial banking, deposit and lending customers. These institutions also generally participate in the currency market for hedging and proprietary trading purposes. But speculators also trade the Forex – and it is catching on like wildfi re.

The Forex market is traded using the spread or difference in value between two currencies – commonly known as “currency pairs.” The most popular pairs are:

USD/JPY - Dollar vs. Yen EUR/USD - Euro vs. Dollar GPB/USD - Pound vs. Dollar USD/CHF - Dollar vs. Swiss Franc

The Forex is a liquid electronic market, so the value of any Forex pair is known at all times. For this reason, brokers let people trade on minimal margin. If you are trading stocks, $1,000 can control as much as $4,000 during the day. But in the Forex market, $1,000 can control as much as $100,000!

We now support the Forex in OmniTrader 2007. The futures database has all the correct margin numbers to

track gains, so all you do is add your Forex pair symbols and run OmniTrader’s analysis on them. Forex data is available from eSignal and IQ Feed, and additional sources will be added.

Introduction to Trading Forex Seminar on CD

FOREX Now Supported in OmniTrader*

This chart shows the GBP/USD (British Pound to US Dollar) Forex pair. This one trade resulted in a gain of $10,490 - almost SIX TIMES the required margin. This is a HOT market!

Our new seminar Introduction to Trading Forex by Jeff Drake will empower you with the in-formation you need to trade the Forex with OmniTrader. Discover why the Forex is so hot and how people are making money trading it. You will also learn about the mechanics of Forex trading, including the nuances of commissions and other factors. In addition to showing you how to set up OmniTrader to trade the Forex, it offers a great introduction to the art of trading foreign exchange. Catch the Forex Wave in OmniTrader 2007!

* Forex is suppor ted in the Futures, Real Time, and Professional Editions of OmniTrader. For upgrade pricing, contact a Nirvana Sales representative at 1-800-880-0338.

Ken Woodie has been a professional trader for over 25 years, and is the founder of the “Woodie’s CCI Club,” an online community that practices his methods of us-ing the CCI indicator to trade the markets. “I began to use the CCI and started to develop patterns on it 13 to 14 years ago”, Woodie says. “I noticed that these particular patterns were showing up on daily charts time after time. And so, that’s when I started develop-ing the patterns on the CCI.”

Woodie began to give these patterns names, such as the CCI Ghost, Vegas, and Shamu. While the names are unique, the results of the patterns are very similar – they consistently fi nd profi table short term trading opportunities. Woodie has freely shared these patterns within the trading community, and hundreds of traders are using his approach to trade the markets every day.

To our knowledge, nobody has ever successfully automated Woodie’s approach. The number of rules and situations that must be identifi ed is rather large. However, we felt the approach had considerable merit, we spent a long time studying the patterns and creating a series of Systems, Indicators, and Stops, which have evolved into the Woodie’s CCI Plug-In.

Using the power of OmniTrader, we quickly began to see ways to improve on what Woodie accomplished. The result is the WCCI Nirvana with Trend Strategy. From our testing, this version generates approximately double the profi ts of the original. Of course, we then used the Portfolio Simulator in OmniTrader 2007 to determine the best Allocation Method to trade it!

10

Using the Kelly Critieria Allocation Method

WOODIE’S CCI NEW! Plug-in for OmniTrader

The WCCI Nirvana with Trend Strategy fi nds superb Swing Trades, like the one shown here on RRD. The trailing Stops have been tuned to generate maximum profi t from the Signals.

Applying the Tools for Maximum Profi ts! We used the new Portfolio Simulator to quickly identify a successful Allocation Method for the new Strategy. Using the Kelly Criteria for allocation resulted in SIX times more profi ts, with reasonable draw-downs!

All Trades: WCCI Nirvana with Trend StrategyAbbreviation Statistic Forward TestNT Number of Trades 445PT Profi table Trades 336HR% Average Hit Rate (%) 75.51ABT Average Bars Per Trade 7EPR% Annualized EPR (%) 36.70

Using % of Equity (10% per trade)

11

Special Package Price $395

FREE Shipping When You Order by November 30th*

Order Online: www.omnitrader.com/upgradeCall: 1-800-880-0338

Maximize Profi ts with OmniTrader 2007!Order by November 30th and SAVE!

OmniTrader 2007 Upgrade....................................$149

•OmniTrader 2007 Upgrade•Woodie’s CCI Plug-in •Mastering Money Management Seminar •Introduction to Trading Forex Seminar

Offer Ends November 30th

Reg. $199

NEW! Woodie’s CCI Plug-in...............................................................$249Reg. $395Get the Woodie’s CCI Plug-in and fi nd profi table short term trading opportunities. Our Strategy is generating approximately

double the profi ts from Woodie’s original.

Introduction to Trading Forex Seminar on CD by Jeff Drake..............................$99

Mastering Money ManagementSeminar on CD by Ed Downs ...........................$149

Reg. $149Reg. $199Learn the effects of different position sizing Methods, including how and why the various Methods work and also how to use OmniTrader’s new Money Management tools in your trading.

Discover the amazing opportunities in the Forex markets. Learn why the Forex is so hot and the mechanics for trad-ing Forex. You will also learn how to get started trading the Forex using OmniTrader.

Important Information: Nirvana Systems, Inc. is not an investment advisory service, nor a registered investment advisor or broker/dealer. No investment or trading advice, recommenda-tion or strategy regarding any security, group of securities, market segment or market is intended or shall be given. Past performance, whether actual or indicated by historical tests of strat-egies, is no guarantee of future performance or success. The purpose of any particular trading strategy, technique, method or approach discussed or demonstrated is solely to illustrate how OmniTrader 2007 may be used. No representation is being made that it will guarantee profi ts, an increase in profi ts or the minimization of losses. Our software is backed by our unconditional Money Back Guarantee. If for any reason you are not fully satisfi ed, you may return the software, within 30 days of purchase, for a 100% refund, less shipping and handling. Educational materials are non-refundable. In bundle offers, the OmniTrader upgrade is valued at $149 if purchased before the deadline, $199 after the deadline.Texas residents add 8.25% sales tax. * US Residents Only

•Portfolio Simulator – Evaluates your trades to fi nd the best Allocation Method to use for optimal trade sizing—AUTOMATICALLY!

•Reward:Risk Tool – Determine proper Stop placement and quickly assess any trading opportunity visually with this new, interactive tool.

•OmniScript in Trade Plans – Easy customization of entry and exit conditions with the ability to add specifi c criteria to any indicator.

•Forex – Now Forex is supported in OmniTrader Futures, Real Time and Professional Editions. All you have to do is add your Forex pair symbols and run it’s analysis on them.

OmniTrader 2007 Upgrade $199 Order by November 30th $149 Woodie’s CCI Plug-in $395 Order by November 30th $249 Mastering Money Management CD $199 Order by November 30th $149 Introduction to Forex Seminar on CD $149 Order by November 30th $99

7000 N. MoPac, Suite 425Austin, Texas 78731 USAToll Free 1. 800. 880. 0338

www.nirvanasystems.com

PRESORTEDFIRST CLASS MAIL

U.S. POSTAGEPAID

AUSTIN, TXPERMIT #1546

“This year’s upgrade package is the best we have ever offered. I know you will LOVE it!” -Ed Downs

Order Online: www.omnitrader.com/upgrade

OmniTrader 2007 Now Available!

OmniTrader 2007

•Portfolio Simulator – Evaluates your trades to fi nd the best Allocation Method to use for optimal trade sizing—AUTOMATICALLY!

•Reward:Risk Tool – Determine proper Stop placement and quickly assess any trading opportunity visually with this new, interactive tool.

•OmniScript in Trade Plans – Easy customization of entry and exit conditions with the ability to add specifi c criteria to any indicator.

•Forex – Now Forex is supported in OmniTrader Futures, Real Time and Professional Editions. All you have to do is add your Forex pair symbols and run it’s analysis on them.

NEW! Woodie’s CCI Plug-in.

NEW! SEMINARS on CD

Get the Woodie’s CCI Plug-in and fi nd profi table short term trading opportunities. Our Strategy is generating approximately double the profi ts from Woodie’s original.

Introduction to Trading Forex Seminar on CD by Jeff Drake

Mastering Money ManagementSeminar on CD by Ed Downs