Scammers - Hall of Shame

I know you can fake an account statement, but how would you go about faking live returns on MT4 servers? Let's assume it's possible, I think on average the TE will be accurate especially over time (two, three four years etc.). At the end of the day nothing is 100% but I have to believe on the whole, returns from a live account - even if they aren't indicative of future performance - have to be more meaningful then some jack-hole showing up claiming he's made 100% a month for the last year.

http://www.forexfactory.com/showthre...34#post7925934

that's crazy!

Very good, enjoyed this video

That video should be placed at the start of every thread opened in the commercial section, and if the OP disagree's....then no thread.

While TE's and MyFxbook can be faked, it's worth noting that to do so involves a fairly decent cost. Most of the BS artists on this and other forums have neither the knowledge nor the funds to do this. Lazy scamming!!

If a commercial vendor puts up a MyFxbook history with a reputable broker, then most likely it is real. Provided the track record and trading privileges are verified.
However it is possible that this is just a tweaked version of a system running on multiple accounts, which is the only version fitting current market conditions; as is the case with grid systems. So longevity is important. Anything less than 12 months is out, and me personally...I wouldn't part with money unless I saw 3 years history....LIVE ACCOUNT!! Anyone who gives money to someone on basis of a demo TE kind of deserves to be screwed in a way.

On a side note, my attention was drawn to Daddybear via this and Swing's forum. I saw his demo TE which disappears in draw downs...same old story then!
But..., I know he posts multiple times to increase traffic on his thread and bump him up the "hot" lists....but is he......, well, I mean is there a clinical issue here?! He seems unwell!?

Anyway, deranged ramblings aside, his ridiculous terrorists thread sparked an idea...
This thread I believe is a good meeting place to discuss those like this guy Daddybear who clearly sell without any kind of proof.
But...is there any thread devoted to commercial members who actually can prove themselves..according to the longevity and credibility requirements?

Perhaps there should be...
I would encourage all vendors here, who think they have a genuine service to offer to start a thread, and prove their worth.

Instead of just a commercial thread, where any idiot who charges something for anything is thrown in the pot, how about a stand out thread where multiple commercial members can put forward their case as to why they are worthy of a fee. Not with bullshit and the usual cliche's, nor hiding behind their risk disclaimers.
How about live TE's. From them sure, but more importantly from the people they have as clients. Show us that the teaching is good. Show us that the method is viable.

Not for us...most likely I will never purchase a system or join a paid group...But do it as a genuine sales pitch! Show the product, and it's value.

I doubt there will be many takers to this idea

Perhaps Forex Factory could charge commercial members a membership fee

No more free advertising for paid systems, just my 2 cents

they don´t??

ups i´m surprised!

maybe i should go for commercial and sell my EA instead of give them away for charity donations

Probably not a bad idea. I doubt FF would make much money off of it but it would certainly cut down on the scammers.

I think that might put FF in a difficult position, legally.
If FF collected money from Commercial members they would be considered paying clients.
If they perpetuated a fraud, FF might be considered a part of it.

I think that have that pretty well covered in their Terms of Service.

Liability for Services
WHEN PERMITTED BY LAW, FF, AND FF’S AFFILIATES, SUPPLIERS, AND DISTRIBUTORS, WILL NOT BE RESPONSIBLE FOR LOST PROFITS, REVENUES, OR DATA, FINANCIAL LOSSES OR INDIRECT, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES.
TO THE EXTENT PERMITTED BY LAW, THE TOTAL LIABILITY OF FF, AND ITS AFFILIATES, SUPPLIERS, AND DISTRIBUTORS, FOR ANY CLAIMS UNDER THESE TERMS, INCLUDING FOR ANY IMPLIED WARRANTIES, IS LIMITED TO THE AMOUNT USERS PAID FF TO USE THE SERVICES (OR, IF FF CHOOSES, TO SUPPLYING USERS THE SERVICES AGAIN).
IN ALL CASES, FF, AND ITS AFFILIATES, SUPPLIERS, AND DISTRIBUTORS, WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE THAT IS NOT REASONABLY FORESEEABLE.

I've never seen the CFTC go after a company who accepted advertising dollars from a company or person who turned out to be conducting fraud.

This might though

 

1. Post 775

FTC Truth in Advertising law:

Advertising must tell the truth and not mislead consumers.
In addition, claims must be substantiated.

General Offers and Claims Products and Services
The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is deceptive if it is likely to:

 

1. mislead consumers and
2. affect consumers' behavior or decisions about the product or service.

In addition, an act or practice is unfair if the injury it causes, or is likely to cause, is:

1. substantial
2. not outweighed by other benefits and
3. not reasonably avoidable.

In addition, claims must be substantiated, especially when they concern health, safety, or performance. The type of evidence may depend on the product, the claims, and what experts believe necessary. If your ad specifies a certain level of support for a claim - "tests show X" - you must have at least that level of support.
Sellers are responsible for claims they make about their products and services. Third parties - such as advertising agencies or website designers and catalog marketers - also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising, or know about the deceptive claims.

1. Advertising agencies or website designers are responsible for reviewing the information used to substantiate ad claims. They may not simply rely on an advertiser's assurance that the claims are substantiated. In determining whether an ad agency should be held liable, the FTC looks at the extent of the agency's participation in the preparation of the challenged ad, and whether the agency knew or should have known that the ad included false or deceptive claims.
2. To protect themselves, catalog marketers should ask for material to back up claims rather than repeat what the manufacturer says about the product. If the manufacturer doesn't come forward with proof or turns over proof that looks questionable, the catalog marketer should see a yellow "caution light" and proceed appropriately, especially when it comes to extravagant performance claims, health or weight loss promises, or earnings guarantees. In writing ad copy, catalogers should stick to claims that can be supported. Most important, catalog marketers should trust their instincts when a product sounds too good to be true.

Other points to consider:

1. Disclaimers and disclosures must be clear and conspicuous. That is, consumers must be able to notice, read or hear, and understand the information. Still, a disclaimer or disclosure alone usually is not enough to remedy a false or deceptive claim.
2. Demonstrations must show how the product will perform under normal use.
3. Refunds must be made to dissatisfied consumers - if you promised to make them.

FF could forward TOS to include agreement before posting new threads in this section

Ken A's post should be considered.

Unless FF prepared the add (in this case all advertising content is written by the scammer) and knew it to be fraudulent (not an assumption but knew definitively) they are going to have a hard time based on the FTC rules. None of this stuff is set in stone... It's much harder to prosecute these guy than most of us would like to admit or they would be shutting them down on a daily basis. But their not... I'm pretty sure at this point FF has good lawyers in place and probably don't kneed us speculating on their demise. I'm guessing most of this has been addressed at this point.

Before this thread drifts off into complete oblivion there is one other thing we should probably touch base on. In the institutional side of things we talk about fee impact a lot and how it affects returns, program survivability etc. It's rarely discussed on the retail side, so let's paint a REALISTIC picture for just a second.

First we have to make some assumptions about returns. I don't care what the newest guru says he can do or what you hope you can do there are certain realities about trading.

1. It's very difficult to crack double digit returns annually over a lifetime of trading. Sure you can do it this year or that but if it's your intention to trade for a living, I'm going to assume you intend on living beyond the next year... See my point? The averages are going to play out over the long run.
2. Excess returns are directly related to risk. If you have a year where you made 20% part of those returns could be model/approach efficiency but part of those returns will be associated with how much leverage - intended and non-intended (think correlated trades) - you take. That risk will come back and get you when the efficiency of your approach falls off. And then the long term average - see number one again - play out. The problem with leverage is, if you're carrying too much it can zero your account out or leave it so depleted that a return to a proper risk profile after the loss guarantees you'll never ever recover... Maintaining that risk profile guarantees you WILL zero out your account, so get it right BEFORE you start trading!

So what does this mean about our Guru's... well if they have huge-holy-mother-of-pearl-returns (that can actually be verified), it's because they were leveraged to the hilt or the approach was highly efficient for a brief period of time, or both, or it's a cherry picked return. So again see number one because the averages and risk profile WILL eventually get them too and if you're betting on their success then it also gets you unless you have numbered 2 (get it right before you start).

Now let's talk about fee impact. Somewhere here recently I saw one of our Big Ragu's claim $250 a month was a bargain for his incredible calls. I know one joker on another website who has been around forever charges $350 a month... Let's break those numbers out using something reasonable like number one. We'll say 15% a year (just know over the long run that is probably too high). And because we're assuming 15% a year we'll also assume our Guru is sub par and only charges $150 a month. The question is how much money I do I need to have in my account to make that monthly cost make sense over the long run... Because this guy for certain is going to be here on FF for the next ten years right (you do realize how stupid that sounds... right?)

So... let's assume we're willing to give up 2% of our returns to this guru for his incredible advice.

1. (150*12)/.02 = $90,000
2. 90,000/.15 = $600,000

For that monthly fee to make sense and for an account to survive its impact on returns in bad years, minimum account funding needs to be $600,000. The reality is, most retail traders aren't funded at that level. Not even close. I'm not... My current portfolio split is 55% equities, 35% bonds and 10% alternatives. Alternatives break down into a handful of different asset classes and the most I'm willing to risk on FX where I REALLY speculate is 2 to 3%. For me to allocate $600k at a 3% level I'd need a $20,000,000 portfolio. Guess what... I don't have that.

There are all kind of weak, bogus arguments that follow these types of discussions. But then there is reality and that's what you'll have to face down the road. A lot of people ask me "... if this is true than why bother?" I can't answer that only you can decide if it makes sense for you, if you enjoy it etc. Value isn't always in the numbers, sometimes it's in the process. I love what I do, I enjoy math, researching and coding and this is a great way to put those processes in action. I'm also fortunate enough to have carved out a niche for myself in the business where my work is valued by the right people. So my returns for my efforts aren't just at the account level.

If you enjoy trading, do it. But do it safely, in a manner that doesn't rob you of your hard earned money while chasing some pipe-dream. And PLEASE don't do it in a fashion that jeopardizes your financial stability or that of your family. - JP

I would like to wish everyone a Merry Christmas and a very happy and prosperous 2015 !!!

4x

watchout in 2015 these things start somewhere ,this guy started managing funds from friends .
http://www.zerohedge.com/news/2014-1...british-madoff

Nice post, FXA.

T34,

Enjoyed the video, many thanks for sharing. Then I watched a few more of Mr Brennan's videos, and found that his views on a lot of topics (e.g. trend trading; grids and martingales; his expectations of the usefulness of TA; what actually drives the markets; markets being a random walk with pockets of non-randomness; what returns are realistically possible; etc) make a lot of sense to me. Mandatory viewing for any newbies IMHO.

Merry Xmas, everybody!

David

Are there any other ways to cheat myfxbook without setting up a new broker?

Im seeing a lot of strange looking myfxbooks from regulated brokers that I'm sure been manipulated but I don't really know how.

Anybody got things to watch out for?

Have a good festive holiday guys and gals, party hard and keep smiling , the good guys always win.