Reader falls victim to Profit Trading forex scheme

ForceFate

ForceFate

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Des wrote to City Press after being defrauded by forex trading company Profit Trading, a business that claimed to invest clients’ money into an automated forex trading system. The company appears to have closed down, with the founder unreachable and investors unable to access their funds.
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More here

Related article here

Moneyweb article
 
Who the hell puts all their money into:
a) forex
b) automated trading algorithms
c) one basket

or option "Des": all of the above :D
 
The only thing I can't understand is, where are all these stupid gullible people when I need some money?
 
On another note ... Do you think someone could program something like this with moderate accuracy? I know there's human intervention/knowledge required ie Brexit, acquisitions etc ... But moderate?

Like analyse share average for 3, 6, 12 etc months ... Day to day varience ... PE ratios etc
 
Dolby said:
On another note ... Do you think someone could program something like this with moderate accuracy? I know there's human intervention/knowledge required ie Brexit, acquisitions etc ... But moderate?

Like analyse share average for 3, 6, 12 etc months ... Day to day varience ... PE ratios etc
Click to expand...

If there was.. banks would be using it.
Market changes. Trend analysis etc help but fundamentels screw that up all the time.
There was a thread on this a year but in the software dev side ..
 
Profit Trading founder arrested

Durban - A Pietermaritzburg businessman who founded alleged Ponzi scheme Profit Trading was arrested by the Special Commercial Crimes Unit (SCCU) on allegations of fraud at a Sandton Hotel on Thursday night. Angry investors – who claim they have been defrauded – tracked Myles Ndlovu down to the hotel. When he was unable to provide answers about where their money was, they contacted the SCCU.

An investigation last year by the Financial Services Board (FSB) into Profit Trading, which claimed to invest funds in a forex trading robot, found that no trades were ever placed, suggesting that it was an elaborate Ponzi scheme. Investors and shareholders close to the business claim that R52 million has been invested.
City Press first highlighted irregularities around the conduct of the forex platform in an article on May 28, and details of the FSB investigation on June 11.

http://m.fin24.com/fin24/Economy/profit-trading-founder-arrested-20170616
 
Dolby said:
On another note ... Do you think someone could program something like this with moderate accuracy? I know there's human intervention/knowledge required ie Brexit, acquisitions etc ... But moderate?

Like analyse share average for 3, 6, 12 etc months ... Day to day varience ... PE ratios etc
Click to expand...

Pho3nix said:
If there was.. banks would be using it.
Market changes. Trend analysis etc help but fundamentels screw that up all the time.
There was a thread on this a year but in the software dev side ..
Click to expand...

This does happen and banks do use it. It's called algorithmic trading. It requires constant maintenance, but essentially, you feed an algorithm a set of inputs, which it uses to compute things like instructions to buy, sell or hold. The inputs are various technical analysis artifacts, usually.
The algos aren't 100% efficient, but they're right >50% of the time, if they're working well, so you end up making a profit. Nothing like their 8%/month, though.
 
Messugga said:
This does happen and banks do use it. It's called algorithmic trading. It requires constant maintenance, but essentially, you feed an algorithm a set of inputs, which it uses to compute things like instructions to buy, sell or hold. The inputs are various technical analysis artifacts, usually.
The algos aren't 100% efficient, but they're right >50% of the time, if they're working well, so you end up making a profit. Nothing like their 8%/month, though.
Click to expand...

Thanks for correcting me :)
I might be mistaken but you were asking/mentioned you'd be doing some research into this in your own time but I'm not sure what for? Big Data analysis or something?

Side note: So bank takes me money, uses it for this trading. Makes 50% profit a month(as an example). Gives me 8% for the year?
 
Wait wasn't there a thread about this already a while ago? It was already pointed out to be a Ponzi scheme. I think he was also on TV and radio claiming to be a Multimillionaire and him being so young, blah blah blah...
 
Pho3nix said:
Thanks for correcting me :)
I might be mistaken but you were asking/mentioned you'd be doing some research into this in your own time but I'm not sure what for? Big Data analysis or something?

Side note: So bank takes me money, uses it for this trading. Makes 50% profit a month(as an example). Gives me 8% for the year?
Click to expand...

Yup, it's an ongoing exercise. It's changed to the point that I'm actually doing my M.Sc CS researching it. Big data analysis and AI/ML.

By right >50% of the time, I meant they're right more than they're wrong. If they consistently bet R100, then they win more than they lose, so they end up making a profit, basically.

Their returns are a lot less than 50%. Also, the 8% they might give you, might be due to bond sales, minus some transaction costs or something. They're not necessarily ripping you off that badly. Not saying they're not though.
 
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