Copy - Scam

ncel01
13 Mar 2023, 15:23

Hello,

That's a side effect of following high leverage strategies.

Simple as that.

bartek004
13 Mar 2023, 17:49

Copy - Scam

Well it was 30 compared to my 50 so it wasn't high leverage. Not only I wasn't aware that there are 10 opened losing positions there were Nasdaq and Oil. His history showed only AUD trading which I dont mind but I dont do Oil at all and I short Nasdaq and SP500 and he was long for a week with big losses. Because open positions were not shown that is the reason why I think I was tricked. 

ncel01
13 Mar 2023, 20:21

Hello,

1:30 is already a lot to me.

Wait.. can you tell me what min. trading quantity your broker allows on NASDAQ?

Have you seen how many units (in total) on NASDAQ were being traded on that strategy?

tadas8891
13 Mar 2023, 22:43 ( Updated at: 13 Mar 2023, 22:44 )

Every single one of them are scammers. I wasted too much money on it.

They all have the same thing in common: they let losing trades run forever (until your account will be blown up) and close only winning positions so they can collect performance fees. Every single “strategy provider” (or more like scammer providers) that I followed for a few weeks/months was making money and then in a few days there was a -90% drop. So no stops, nothing. They just open a new $10 account and start all over again scamming people. Brokers are making big bucks so they do not give a s@@t.

And it’s not leverage that is the problem. I have used 1:500 leverage for the past 9 years and never blown up an account. The problem is none of them use any risk management. They risk their whole account by not using SL. Usually this lasts for a few months until finally one trade never comes back and blows their and customer accounts. But in those few months they made a lot of money from “performance fees”. And then they just restart and do it all over again.

ncel01
13 Mar 2023, 23:21

Hi Tadas,

What they have in common, among other:

• A high leverage account (usually 1:500)
• They use the leverage for ROI pumping

Of course the leverage is a problem. Not the only problem but it is a problem, that's for sure.
No matter what your risk management is, the higher the leverage the higher the risk. Furthermore, if the leverare is mainly intended for ROI pumping, it is not used as carefully as it should.

In short:
I can hardly imagine that a provider with a 1:10 leverage strategy, for instance, can have any harmful intention(s), which is not exactly true when it comes to 1:500.

bartek004
13 Mar 2023, 23:25

ncel01 my broker IC Martkets allow 1 unit as a minimum. He had about 4 or 5 long positions on Nasdaq and rest on Oil. 

You are right tadas. My mistake for not checking it properly on PC. Mobile is really limited in what you can see.

He have 9 losing open positions now and he is -3000 AUD. No SL obviously. 

ncel01
14 Mar 2023, 10:37

Hi,

There you have the reason!

Maybe his broker allows 0.1 or even 0.01 units on indices, meaning that you were trading 10x or even 100x more than him on NASDAQ, reason why your account has blown!

Note that Spotware is not protecting traders regarding this. Equity-to-equity ratio is not applicable when it comes to the minimum trading quantities.

For instance, even if the equity-to-equity ratio is 1:1 and the volume ratio is 1:100, a position will always be open with the min. applicable trading quantity!!

Interesting, isn't it?

Suggestion: I would avoid any broker with min. trading quantities of 1.0 units at all costs as these conditions are not acceptable at all.

dana2908
15 Apr 2023, 00:48

RE:

b.lazarecki said:

Be careful before you join any copy strategy. I ve join without knowing that there are 10 heavy  losing positions already open so when I joined I was losing money quickly. Within 5 hours almost 80% of my deposit was lost without opening any new position.

If I would know that there are so many losing positions open I would never join. Simple as that. 

I reckon you must do your own due diligence, before joining any strategy.