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  • #1
  • First Post: Edited Oct 15, 2007 5:09pm Jun 22, 2007 5:44pm | Edited Oct 15, 2007 5:09pm
Hello everybody,

I just began with a demo account on Velocity Trader with an Expert Advisor.
A person gives me Metaquotes Zigzagsa everyday, there's been told that 97%of the trades make profit and 3% make a loss. For so far this seems to be right, the balance is $110.001,72.

I have still -$32.086,44 open trades, these trades differ from yesterday till 8.6.2007 and the highest is -282,00. The contactperson says in now and six weeks the open trades will be closes (97% profit again).
Does anybody know if this is possible because the amount open trades getting more and more. I can make some screenshots if anyone wants, then I can mail them. How do you people think about this, is the expert advisor reasonable and confidential? Thanks.
  • #2
  • Jun 22, 2007 8:02pm Jun 22, 2007 8:02pm
That great on a 100,000 demo but ask your self could your real account handle that?
  • #3
  • Jun 22, 2007 10:17pm Jun 22, 2007 10:17pm
  •  iya
  • | Joined Oct 2006 | Status: always protect yourself | 129 Posts
+10.000 closed out and -32.000 open?
Looks to me, like the EA is cutting the winners short and letting the loosers run, which is not a sign of a robust strategy. Allowing huge drawdown is also the only way to reach 97% profitable trades.

The easiest way to find out about the merit of the EA and if the risk is worth the reward is simply to continue demo testing it a little more. You have to realize the one or two months 'lost' to testing is nothing compared to the time you can still trade it for real if it indeed turns out to be profitable – and if not you'll save your precious money.

One more suggestion: Use a demo account the same size as your real account, to get a better feel for money management. 20% drawdown after half a month is probably too much risk to take.
  • #4
  • Jun 23, 2007 8:33am Jun 23, 2007 8:33am
Remember your are dealing w/margin.
  • #5
  • Jun 24, 2007 8:08am Jun 24, 2007 8:08am
Thanks for the reactions guys.

I think I will continue the demo for a few weeks to see how things are developing. The contact person told me about the open positions that they had foreseen the high exchange rate at the moment between GBP/USD (1.9984). He says the rate will decrease in the coming weeks so the open positions will get profitable, I think it's quit nice to see what the rate is going to do, but we'll see.

My margin level at the moment is 143,04 %, is this a good percentage?
By the way, do you guys have any experience with the broker ''Velocity Trader''? Is it a safe and good broker with a Real Money account..

Thanks!
  • #6
  • Jun 24, 2007 9:34am Jun 24, 2007 9:34am
It's a very poor system that leaves you exposed to -32K with only 110K in capital. I don't know how the EA works, but it sounds worse than random. Just be glad you caught it before you put real money into the system.

Think of it this way - if thiee trades are so good, then if you were to restart the system with your current capital (around 78K) it would probably repeat the performanc for a net loss of around 22% over the same period; restart it again, down another 22%; etc....What's your pain threshold?

I don't know anything about Velocity Trader either - but if you found them through e-mail notification I'd just give them a pass - there's lots of reputable dealers out there. BTW, I did a google on the company, and came up with a number of hits, including postings from another chat website where the the VP of Futures trading announces himself as having been a professional trader "for over 5 years". as of 2005, and then proceeds at length about scalping....This is definitely not somewhere I would put real money.
  • #7
  • Jun 24, 2007 9:36am Jun 24, 2007 9:36am
Observation/Suggestion

Use demo for learning the platform or testing how a system operates

Use real (with micro lot feature) for trading.... in order to test how your psyche operates.

Trade micro lots rather than demo lots. It makes a difference.
  • #8
  • Jun 24, 2007 3:02pm Jun 24, 2007 3:02pm
Quoting woodwood
Thanks for the reactions guys.

I think I will continue the demo for a few weeks to see how things are developing. The contact person told me about the open positions that they had foreseen the high exchange rate at the moment between GBP/USD (1.9984). He says the rate will decrease in the coming weeks so the open positions will get profitable, I think it's quit nice to see what the rate is going to do, but we'll see.

My margin level at the moment is 143,04 %, is this a good percentage?
By the way, do you guys have any experience with the broker ''Velocity Trader''? Is it a safe and good broker with a Real Money account..

Thanks!


Hi Wood-

A word of caution to consider.... I looked into Velocity some several months back and must have "checked" a box to recieve email notifications. Anyway, a few months ago, I received an email that stated Velocity was experiencing liquidity problems and that they hoped to have that problem resolved soon.

Please note that this is not an exact quote, I am only writing from a cobwebbed memory here. I do recall it was a RED flag for me, and that I checked off on further email notices. I DO NOT have this email, I DO NOT have any further knowledge of this company, nor if problem was resolved or not. I also have never used this broker, live or as a demo.
You can also check financial stability thru the NFA I believe, sorry I do not have that site handy......though I know if you look up UGM thru this site, there was a thread about UGM having money woes and on that site is the website to click thru to the monthly financials for most brokers.
Hope this helps....Good luck
Proper Prior Planning Prevents Piss Poor Performance
  • #9
  • Aug 22, 2007 3:57am Aug 22, 2007 3:57am
Quoting woodwood
Hello everybody,

I just began with a demo account on Velocity Trader with an Expert Advisor.
A person gives me Metaquotes Zigzagsa everyday, there's been told that 97%of the trades make profit and 3% make a loss. For so far this seems to be right, the balance is $110.001,72.

I have still -$32.086,44 open trades, these trades differ from yesterday till 8.6.2007 and the highest is -282,00. The contactperson says in now and six weeks the open trades will be closes (97% profit again).
Does anybody know if this is possible because the amount open trades getting more and more. I can make some screenshots if anyone wants, then I can mail them. How do you people think about this, is the expert advisor reasonable and confidential? Thanks.

Rory
Hello,
A few months ago I started the same system as you did. It all sounded so easy: I could become a trader (but I didn't have any experience at all) but this people of Velocity trader said it was no problem. They gave me a demo account and a metaquote zigzagsa that I had to install everyday. And that was it, they said the system would make his own money: 1% everyday.
They would put my name on a list and people who wanted to open an account could contact me. But then it started: first I would have to put in my money and then I would get customers. This all sounded bizar to me. I could onlu reach this peopel from velocity by e-mail and when I asked to meet them personally they said that was not possibly. They only insisted that I first bring in friends of mine with real money and then I could become a trader. This all sounds very suspicious to me. Is this the same experience with you?
  • #10
  • Last Post: Aug 23, 2007 3:39am Aug 23, 2007 3:39am
Hello Ducky,

I have replied to you by mail and private message. Hope to hear from you. Thanks.

Rory
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