Earn2Trade Founder Charged With Fraud

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

  1. longshort

    longshort

    Yes, it's exactly how I said in the case you're winning. In the case you're losing, you lose the entry fee you've paid ("exam" fees and resets) to enter their bucket shop casino.

    How would you know? There are parameters to be set for every trading simulator.

    I already explained to you that even Sharpe 0.5 makes money but doesn't pass their rules.

    Okay, so I wanted to know, which one of the three (stated) possible alternatives it is. Your answer "It's the same," doesn't make any sense.
     
    #281     Sep 28, 2020
  2. longshort

    longshort

    If my post causes you that much facepalm, it should be a breeze for you to point out if/how I might be wrong on a factual/logical level. Can't do that? Thought so.
     
    #282     Sep 28, 2020
  3. userque

    userque

    You're correct. It would be a breeze.
     
    #283     Sep 28, 2020
  4. longshort

    longshort

    Except that of course you're all hat and no cattle, as I said you would be.
     
    #284     Sep 28, 2020
  5. The logic of limit orders is the same as it is with Earn2Trade's Gauntlet. I have to make it clear though, that the orders of course use live data, but go to Rithmic's paper trading server. Their simulator environment then handles the trades. It seems to me that you are under the impression that we have any control over that, which neither Helios, nor Earn2Trade does. Whatever parameters you say are possible, they may be, but we have no control over it. If Rithmic decides to change something on their sim environment, any user on Rithmic Paper Trading will see those changes. Rithmic offers you the chance to try all that here: https://www.rithmic.com/demo.html#sign-up
     
    #285     Sep 29, 2020
    FlashGordon likes this.
  6. longshort

    longshort

    You should know how your simulator works and if it results in adverse selection of trades compared to the live market. If it does, the "LiveSim" thing is strikingly similar to Ryan Masten's binary options endeavor.

    Deflecting responsibility to a third party doesn't work because no simulator was built to function as a mock market where "traders" lose their real money "exam"/reset fees if they lose, or win proportionally to their bucket shop trades (to the detriment of the "prop firm" who carries that as its loss).

    Such a mock market isn't supposed to exist. Futures are standardized and regulated to be traded on exchange. One can't make OTC trades in futures or worse, operate a "LiveSim" bucket shop in futures.
     
    Last edited: Sep 29, 2020
    #286     Sep 29, 2020
  7. longshort

    longshort

    Source: https://help.earn2trade.com/en/arti...r-will-i-receive-upon-completing-the-gauntlet
    losers.png

    Another gem from their website. Spells it out that "funded" traders of E2T/Helios are net losers after passing their "examination", so much so that E2T/Helios is happy to be their counterparty for $5,000 in bucket shop gains.

    The Gauntlet's true funding ranges from $1,000 to $2,500 in drawdown allowance, say $1,750 on average. To make sense of E2T/Helios taking the other side, it means at least 70% of the "funded" traders are kicked out in short order:

    kicked out 69.57% * $1,750 = credited 30.43% * $5,000 * 80% profit split

    70% is the bucket shop's break-even point; real failure rate of its "traders" is obviously higher.
     
    #287     Oct 1, 2020
    traderjo likes this.
  8. Out of all the firms this is probably the one to steer clear of. The ladder scaling is designed to blow people out. The other firms will put protections in for the trader whereas this one won't. I would recommend to stay away
     
    #288     Oct 1, 2020
    Dreadsen likes this.
  9. This is not abnormal. It's in the fine print of other firms too.
     
    #289     Oct 1, 2020
    FlashGordon likes this.
  10. Guys, leave it alone. These places aren't designed to profit the trader.
     
    #290     Oct 2, 2020
    longshort likes this.