Earn2Trade Founder Charged With Fraud

Discussion in 'Prop Firms' started by LCK2000, Sep 10, 2020.

  1. Millionaire

    Millionaire

    Thats what the guy in the video did, he was trading 15 lots in one go.

    He actually said i would trade whatever size you give me, so he would pretty much go all in with 100 lots if they let him.
     
    #171     Sep 13, 2020
  2. trade2020

    trade2020

    Forex has advantages and disadvantages

    If you trade S&P 500 in Forex the spread is much wider than the futures market
    example - on majority of forex brokers offer the spread on SPX500 looks something like this
    Sell 3300.00 Buy 3300.60 (the spread being .60) some brokers offer somewhat lower such as Sell 3300.00 Buy 3300.40 (the spread being .40)

    whereas in futures it would be bid 3300.00 and ask 3300.25 - 0.25 is one tick ($12.50) - there are 4 ticks to a point - 4 x 12.50 = $50. The brokers commissions in emini range from about $2.25 to $3.00 - https://www.tradovate.com/TradovateAllInRates.pdf
    so a roundtrip at $3 a side is $6 total per emini contract.
    $12.50 plus $6 ($3 a side roundtrip) is $18.50 - if you use a broker like Tradovate and choose their non-member comm plan it is $2.13 a side ($4.26 total instead of $6) most brokers will be in the $3 per side range

    So if you use a comparable lot size in Forex to 1 emini ES contract that would be to gain or lose $50 per 1.00 point in forex you are already down $30 if you buy at 3300.60 with many brokers and you would be down $20 if the forex spread was 3300.00 x 3300.40
    That is also assuming your forex broker makes money by spread only and is also not charging a commission.

    Also keep in mind that on instruments like SP500 in forex it can be harder to trade using indicators like VWAP as the VWAP on Forex as with Forex you are trading CFD's and the VWAP is not as accurate as the VWAP in futures markets

    So while Forex can offer opportunity on SP500 CFD's versus trading emini contracts in futures markets there are disadvantages if you are more of a scalper. If you are swing trading or trading for larger moves then the spread/comm difference between the 2 doesnt mean as much

     
    #172     Sep 13, 2020
  3. wmwmw

    wmwmw

    I know, I know.
    In another forum where many posters said they wanted to take FTMO contest and it is easy to pass. There is a FTMO free trial with the same rule. A couple of posters said they passed the free trial in 2 or 3 days. And they upload their trade details. One guy loaded 40 contracts and sold in half an hour, another guy loaded 100 contracts and sold in 10 minutes.
     
    Last edited: Sep 13, 2020
    #173     Sep 13, 2020
  4. wmwmw

    wmwmw

    1.Check out brokers with low spread( like the one I recommended).
    2.Watch quote from another source while trade on a forex account.

     
    #174     Sep 13, 2020
  5. trade2020

    trade2020

    I disagree - if you lose $3,300 in the tryout account you lose your tryout fee (whatever that is $375, $425 or whatever the place charges for the tryout). If you took the same trades in your self-funded account you would have lost $3,300. If your place allows a reset (typically $100) and you are still in month 1 of the tryout (so new addl monthly fee) and you fail again by losing $3300 then in that instance you lost $100 (the reset fee) on the 2nd try. If you instead funded your own account with another $3300 of your own money--took the same trades-- you have lost $3300 of your money on the 2nd try. So now with 2 failed trys in the tryout account you have lost $475 ($375 initial fee and $100 reset fee) VS if you funded your acct with $3300 of you own money 2 times you have lost $6,600 of your money VS $475 the other way.

    If you are just looking at it from the standpoint of just funding an account yourself with $475 versus tryout initial fee $375 plus 1 reset $100 then I still say tryout is better in many cases

    Now--as far as aftermath of tryout and getting a funded account, yes --if you are with a company that only offers Trailing Max Drawdown and not fixed max drawdowns then in most cases the Trailing max drawdown funded account is not really a good deal as in many cases they remove the funding after you have generated profits equal to or greater than the trailing max drawdown. Example if trailing max drawdown is $4500 and you generate $4500 in profits - funding is removed and in most cases you are better off withdrawing your $4500 and taking the $4500 and opening your own account with $4500 simply because they no longer provide a drawdown below $0 (meaning funding removed).

    There is an argument though on the other side and that is if you left the $4500 in the topstep account Topstep would allow you to trade 15 emini contracts - so it is possible that you could make a lucky trade using 15 contracts and blow the account profits up very large in one trade as 15 contracts is $750 a point so if your trade did not move against you and you made 20 to 40 points then you could make $15,000 to $30,000

    Whereas if you take the $4500 and open your own account you will not be able to trade 15 emini contracts with an acct funded with just $4,500

    So you could look at it from the standpoint that you could leverage the tryout fee into a funded account and then build the account to $4,500.01 or more - not withdraw the funds - then they allow trade max 15 contracts on scaling plan

    https://help.topsteptrader.com/hc/en-us/articles/360000140787

    Then trade 15 ES contracts on 1 high risk / high reward gamble trade and you would either violate the daily max loss limit / max drawdown and lose your funded account if the trade moved against you 4 to 5 points in ES or you would make quite a bit of money if the trade doesnt go against you and takes off n your favor


     
    Last edited: Sep 13, 2020
    #175     Sep 13, 2020
  6. wmwmw

    wmwmw

    You didn't read my post, did you?
    I gave a scenario that the comparable live account is funded with $429, the same as challenge fee,now you said it lose $3300, which means the account is $33000? (3300/33000=10% loss)



     
    Last edited: Sep 13, 2020
    #176     Sep 13, 2020
  7. Millionaire

    Millionaire

    If you dont have the confidence to know you will not lose in your self funded account. Then stick to paper trading your own demo account, its free. You don't have to keep paying these firms $XXX to prove you cant be profitable in a paper trading account. It's a scam. A con-trick. These firms are going to make $millions from suckers like you.
     
    #177     Sep 13, 2020
  8. destriero

    destriero

    Everyone looking for this "opp" are either unemployed or underemployed. So add bill stress to trading stress? The odds as a price taker in index futures maintaining profitability is 1/1000.
     
    #178     Sep 13, 2020
  9. destriero

    destriero

    There is not a single forex trader on this site that is profitable over a three year period. Stop with the FX BS. And this is not coming from a FX loser... I forced the closure of Oanda's Box Options product.
     
    #179     Sep 13, 2020
    DeltaOneFutures likes this.
  10. Paper trading a free sim account = worthless.

    No skin in the game. Not the same trading decisions as when money is on the line

    There is only a minor benefit in sim trading for free and that is perhaps trading on it a few days to just get used to a new trading platform.
    Other than that there no real benefit to free sim trading as it is not the same as trading with real money on the line , and there are plenty of “free sim trading wonders” who have great stats who get their ass kicked when transitioning to real money as their is a huge psychological difference

    In my opinion someone is much better off trading with real money and very small size (if need be) versus “free” sim trading



     
    Last edited: Sep 13, 2020
    #180     Sep 13, 2020
    themickey likes this.