OMG!!! I can't believe people buy this - What do FOREX traders think?

[Tysonboss1]

I have never seen a con like this, I wonder how many suckers have bitten.

What do all you fOREX traders think.


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[zzaaxxss3401]

Re: OMG!!! I can't believe people buy this. What do the FOREX traders think

I've done several exchanges for AUD to NZD in the past and unless you are trading $50K+ you don't get an exchange rate any where near the spot price. If you're going to use the above software and start with $500, surely the commission is going to eat that up in the first trade!?!?

Maybe what they're actually saying is - "Wow look at the suckers pouring money into this cr*p system I wrote! Move over Bernie, THIS is the world's biggest and best ponzi scheme. Every month MY account balance doubles in size!"

 

[prawn_86]

Re: OMG!!! I can't believe people buy this. What do the FOREX traders think

I've done several exchanges for AUD to NZD in the past and unless you are trading $50K+ you don't get an exchange rate any where near the spot price.

If your doing deliverable FX (ie bank aco**** to bank account) then you are going to have a decent size margin in there.

If you are actually 'trading' fx through a broker like Oanda then your spread will only be a couple pips, as they are market makers, but it wont be deliverable

 

[tothemax6]

OMG!!! I can't believe people buy this. What do the FOREX traders think

Yeah, the sad thing is always that it WILL get some people. Statistically speaking, if they expose the video to enough people, some suckers will throw their money away.
Really sad .

 

[Ruby]

Oooh! Brilliant!! I'm thinking of putting $5,000 in, which means I'll have 10 million by the end of the year - guaranteed! ............ I think i could retire on that. They wouldn't lie........... would they???

 

[Tysonboss1]

Oooh! Brilliant!! I'm thinking of putting $5,000 in, which means I'll have 10 million by the end of the year - guaranteed! ............ I think i could retire on that. They wouldn't lie........... would they???

Don't retire, just keep it compounding and you'll own the world some day,

 

[ChaoSI]

Re: OMG!!! I can't believe people buy this. What do the FOREX traders think

If your doing deliverable FX (ie bank aco**** to bank account) then you are going to have a decent size margin in there.

If you are actually 'trading' fx through a broker like Oanda then your spread will only be a couple pips, as they are market makers, but it wont be deliverable

it's sad but i lol[d when i figured out why they **** the "account"

 

[Tysonboss1]

Re: OMG!!! I can't believe people buy this. What do the FOREX traders think

it's sad but i lol[d when i figured out why they **** the "account"

A little typo was there.

 

[TulipFX]

FAP turbo worked in the past.

I wrote a blog on the 'Asian Scalpers' which I'll reproduce here so I don't get in trouble for linking to a commercial site.

EAs are dead. Long live EAs!


Clickbank must hate me because I request so many refunds. I used to purchase all these so-called ‘wonder’ forex robots, but always end up disappointed that their hype and promises don’t match up with their actual performance.


I will freely state that out of all the $97 EAs I have tried only one actually produced a result. It is probably not surprising to learn that was the...right...Megadroid EA. Megadroid along with the Forex Auto Pilot, or FAPTurbo EA are the most popular and well known EAs sold on the internet. Their success in scalping the couple of hours before the start of the Asian session became legendary and made people some quite tidy sums. FAPTurbo became so popular that thousands of users were flooding brokers at the same instant with orders at a time when the liquidity in the market was at its lowest point.

Naturally, with a stack of traders scrambling for trades at the same time, brokers were having trouble filling the orders.

It was like Post -Christmas sales, thousands of people banging on the door for the few goods available. I remember the difficulties traders had. They suffered slippage, requotes and widening spreads as brokers tried to fill the orders.

When FAP came out in 2007 almost all MT4 brokers were operating a dealing desk where trades would have to be approved by an operator before they were executed. [/one_half]



The influx of FAP trades naturally overwhelmed the dealing desks. They could not cope. Traders were getting angry because their orders were not going through at the price quoted. In the end some brokers even banned the trading of FAP altogether because of this problem.

Capitalism is a magnificent beast. When there is a market, someone will fill it. Disgruntled traders sought brokers which could allow them to trade these robots en mass. Existing and new brokers responded – the problem the brokers had was having to process trades through a dealing desk, so a new type of broker began to emerge: the broker without a dealing desk. Trades were now put through to the brokers’ counter parties without having to be approved. These brokers could deal with the large amount of orders which appeared at the same time and profited from being able to do so.

With these brokers becoming more popular and gaining many new customers, many others followed. Now dealing desks are the exception rather than the rule in the large, respected brokerages. The competition between brokers led to great improvements in trading conditions for all the different types of traders - FAP users, automatic traders and manual traders.

Compared to 2007, the main brokers now offer lower spreads, instant fill of trades and no dealing desks able of messing with traders’ orders. The brokers automatically fill the orders and complaints about bad execution have dramatically fallen.

It was not all sweetness and light. There was still the crush of orders chasing a counterparty but the process had been significantly improved. The issues now for FAP and Megadroid were the issues of the market itself – not of the retail brokers.

This is why FAP and Megadroid were so profitable.
The market was asleep.

FAP and Megadroid traded during the couple of hours between the close of the American session and the start of the Asian session. The big banks had done their business for the day, but had not opened for the new day just yet. This is why FAP and Megadroid were so profitable. The market was asleep. The big and often grumpy forex market was in slumber, so for these few hours a day the market was predictable. There were no big banks moving the market. It traded in a nice, predictable range. The robots could purchase at a resistance point, knowing it unlikely to be broken. It was the golden period for FAP, Megadroid and other trading systems which collectively became known as ‘The Asian Scalpers’ because of the time during the day they traded.

Of course profits attract traders like pollen attracts honey bees. An explosion of systems and traders utilising these systems occurred during 2009 and many people told great success stories; which attracted even more traders.

Something changed in late 2009 and 2010. The sheer volume of traders during this time began to kill the golden goose that was producing these profits. The market began to stop conforming as rigidly to the quiet and predictable beast and began to stir in its sleep as hordes of people poked it looking for continuing profits.

Added to this general increasing volatility of more traders placing orders at this quiet time was the European Debt crisis playing out in Greece and other European Nations. No longer was the market pausing during the quiet hours, it was continuing to trend. Now buying on support points was not as certain, the price was not as sure to rebound within the range and it often continued against the trades made.

Regular and significant losses seem to be plaguing these types of trading systems now. A long term trading account shown below demonstrates the situation:

Struggling of Asian scalpers lately - click to enlarge
The golden period in early 2009 gives way to a bumpy ride in late 2009 and 2010.
Will these systems become profitable again? Or has the market changed? Will it return to its predictable trading ranges again when participants stop trading during these times?

For now, these questions remain unanswered and only time can answer them.

 

[ChaoSI]

this is even more terrible....
but they serioously named a something.....
"FAP" ?!?!?!?!


BUAHAHAHAHAHAHA

 

[zzaaxxss3401]

@TulipFX - quite an interesting read. Thank you for uploading that.

 

[FxTrader]

The golden period in early 2009 gives way to a bumpy ride in late 2009 and 2010. Will these systems become profitable again? Or has the market changed? Will it return to its predictable trading ranges again when participants stop trading during these times? For now, these questions remain unanswered and only time can answer them.

Great post Tulip. I don't trade the transition from U.S. close to Asian open but have trialled auto trading with products like the FXCM FSS. Invariably, systems produced results that worked only when certain market conditions were present for certain pairs and struggled at other times. Consistent profitability was not the end result of this automated trading method.

As for the hype in the vid for FAP, as you say, once the herd stampedes toward using such tools, market performance and price action will change such that it will no longer be effective unless the underlying algorithm is adapted to the new market behaviour (if they manage to get that right).

While I trade mechanically according to my strategy rules, there is an element of discretion and experience with price action that can't be coded into a trading robot IMO.

 

[lowlife]

I have never seen a con like this, I wonder how many suckers have bitten.

What do all you fOREX traders think.


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Ridiculous that people even contemplate purchasing these robots! Greed is so powerful, I mean if it was this easy we would all be filthy rich and have no need to work haha...

 

[fxlife]

Easy money !!!! would look that way .For any newcomer its not possible to use robots to trade ,well consistently for a period of time.I have been trading for 16 years over various markets and it has taken me that amount of time to be able to take 400 to 800 pips from the Fx markets weekly, over 7 currency pairs and to do that i have almost a foolscap page of Crieria for each individual market to enter trades ,to calculate targets and stop loss levels .Even with the systems i have developed some trades you know just arent going to come good and there are times when i have made some extremely lucrative trades which have been placed outside these guidelines ,so sorry to dissapoint anyone ,however the facts are if you are a newcomer which to me is less than 2 years experience then you have a long bumpy road still ahead.Dont get disheartened though because it does feel good when you can get to the stage of making a living from it.

 

[Paulo30]

Everyone wants an easy fix.. the ultimate is having software or a robot taking trades while you never have to watch. Complete science fiction. Global situations change, and money management needs to change accordingly, as well as trading strategies to suit the global climate and sentiment.

Ridiculous that people even contemplate purchasing these robots! Greed is so powerful, I mean if it was this easy we would all be filthy rich and have no need to work haha...

 

[shulink]

There are people who fall for the get rich quick scheme and willing to buy anything to achieve that goal.

 

[Neutral]

Isn't Fap Turbo an EA robot? If the EA robots are designed to trade on pre-determined patterns (ie. fibonacci, higher lows etc) & manage risk with SL just as 'human' technical traders do then what is the difference?

 

[Neutral]

Anyone?

 

[TulipFX]

Blood on the trading floor today for those that use these Asian scalper type systems.