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Strategy regarding ESMA

  • #1
  • First Post: Apr 12, 2018 4:23am Apr 12, 2018 4:23am
Hello guys,

I need some advices / perspectives on my situation regarding future ESMA regulation.

I have a really good performing strategy that I'm using in live since 2016. It works very well, but only on BO. The reason is pretty simple: that strategy have a high probability (on short term) positive return with a very low expected return in pips. That means BO takes advantage of probability while traditional forex is eatten by spread. I already tried to apply on fx and that failed.

Regarding ESMA (for wich I'm concerned), I will soon not be able to trade BO anymore.
I fill only 1 of 3 criterias (professional experience) of ESMA for pro categorization.

So my solutions for keep trading this strategy are :
-Make volume for volume (yes, ridiculous) on fx to meet a second ESMA criteria and become pro next year. But I have to wait 1 year for maybe another regulation keeping me for trading on the end.
-Find some money to fill the 500k criteria (looks difficult )
-To move on another country not concerned by ESMA, but I lost my job, and regulation could change everywhere, and strategy could die etc., risky
-Selling that strategy to people who can actually trade it, but risking to kill it and earn far less money. And I'll not trading anymore...

(Nadex is not a solution because of lack of assets and slow plateform ; offshore scamming brokers neither).

What are you thoughts about this?
  • #2
  • Apr 12, 2018 5:15am Apr 12, 2018 5:15am
Google "australian forex brokers"?
F_ck your analysis, I know exactly where the market will go. To the right.
  • #3
  • Apr 12, 2018 5:41am Apr 12, 2018 5:41am
Quoting Taxi Driver
Google "australian forex brokers"?
200$ limit? reliability? Nope
  • #4
  • Apr 12, 2018 5:56am Apr 12, 2018 5:56am
Quoting faryne
{quote} 200$ limit? reliability? Nope
If you are scared more about australian brokers than BO bullshit itself - there will be no solution for you, sorry.
  • #5
  • Apr 12, 2018 1:04pm Apr 12, 2018 1:04pm
Quoting Drolph
{quote} If you are scared more about australian brokers than BO bullshit itself - there will be no solution for you, sorry.
I'm more scared about australian brokers with negatives reviews that I never trade with than well know UK brokers with I never have any problem.
  • #6
  • Apr 12, 2018 1:09pm Apr 12, 2018 1:09pm
Quoting faryne
Hello guys, I need some advices / perspectives on my situation regarding future ESMA regulation. I have a really good performing strategy that I'm using in live since 2016. It works very well, but only on BO. The reason is pretty simple: that strategy have a high probability (on short term) positive return with a very low expected return in pips. That means BO takes advantage of probability while traditional forex is eatten by spread. I already tried to apply on fx and that failed. Regarding ESMA (for wich I'm concerned), I will soon not be able...
do u need to have certain criteria with the new rules?i thought they just killed the leverage
  • #7
  • Apr 12, 2018 1:16pm Apr 12, 2018 1:16pm
Quoting faryne
{quote} I'm more scared about australian brokers with negatives reviews that I never trade with than well know UK brokers with I never have any problem.
Then leave the negative ones behind and concentrate on the other candidates. Just the same as with the ones under FCA/CYSEC regulation having negative reviews..


Quoting vladutz112
{quote} do u need to have certain criteria with the new rules?i thought they just killed the leverage
https://www.esma.europa.eu/press-new...tail-investors
  • #8
  • Apr 12, 2018 1:20pm Apr 12, 2018 1:20pm
Quoting Drolph
{quote} Then leave the negative ones behind and concentrate on the other candidates. Just the same as with the ones under FCA/CYSEC regulation having negative reviews.. {quote} https://www.esma.europa.eu/press-new...tail-investors
sorry but i dont see where they say i have to have certain criterias to trade only the limitation of leverage
  • #9
  • Apr 12, 2018 1:23pm Apr 12, 2018 1:23pm
Quoting vladutz112
{quote} sorry but i dont see where they say i have to have certain criterias to trade only the limitation of leverage
Are you serious? It is written in bold letters in the headline:

"ESMA AGREES TO PROHIBIT BINARY OPTIONS"

So unless you are a professional trader, you won't be able to trade them anymore.
  • #10
  • Apr 12, 2018 1:28pm Apr 12, 2018 1:28pm
Quoting Drolph
{quote} Are you serious? It is written in bold letters in the headline: "ESMA AGREES TO PROHIBIT BINARY OPTIONS" So unless you are a professional trader, you won't be able to trade them anymore.
ohh sorry i dont care about binaries i thought that u need to have some criteria like 1 year positive trading and things like that to continue trading forex
  • #11
  • Apr 12, 2018 1:38pm Apr 12, 2018 1:38pm
Quote
Then leave the negative ones behind and concentrate on the other candidates. Just the same as with the ones under FCA/CYSEC regulation having negative reviews..
It remains GoMarkets, maybe, but with very low limits... Definively not a solution.
  • #12
  • Apr 12, 2018 1:54pm Apr 12, 2018 1:54pm
I am in a very similar situation as OP: profitable BO strategy on low time frame, but with low expected return in pips, unable to convert to forex (spread).

Currently I'm with two brokers. One is CySEC regulated. Other is Australian ASIC regulated.

CySEC I believe will follow suit whatever ESMA says.
So my hope is on Australian regulated broker.

Will the Aussies still accept me, as EU customer, after the fact?
  • #13
  • Apr 12, 2018 2:31pm Apr 12, 2018 2:31pm
APPLY to be a professional client, thats what I'm doing.
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  • #14
  • Apr 15, 2018 10:13am Apr 15, 2018 10:13am
Quoting Phil_GMT
APPLY to be a professional client, thats what I'm doing.
Yes that would solve the problem IF you can comply with crieria !!!! You MUST comply with two of the three issues. You could of course "lie" but would they check this?????

Surely there must be a way round this (for those of us without $500,000 in the bank ) ????
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  • #15
  • Jun 27, 2018 8:52am Jun 27, 2018 8:52am
Quoting paulw
{quote} Yes that would solve the problem IF you can comply with crieria !!!! You MUST comply with two of the three issues. You could of course "lie" but would they check this????? Surely there must be a way round this (for those of us without $500,000 in the bank ) ????
Yes, would they check this?
  • #16
  • Last Post: Mar 23, 2019 4:20am Mar 23, 2019 4:20am
Quoting faryne
{quote} Yes, would they check this?
hello faryne, have you already found a reliable broker? go markets works fine, but they restrict the max exposure to 1000 EUR.
have you found alternatives? thanks
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