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Thread: Reader falls victim to Profit Trading forex scheme

  1. #1

    Default Reader falls victim to Profit Trading forex scheme

    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.
    More here

    Related article here

    Moneyweb article

  2. #2
    Super Grandmaster NarrowBandFtw's Avatar
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    Who the hell puts all their money into:
    a) forex
    b) automated trading algorithms
    c) one basket

    or option "Des": all of the above
    none so blind as those who refuse to see

    http://lucidramble.com

  3. #3
    Super Grandmaster supersunbird's Avatar
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    No sympathy felt, first clue was this:

    investors received 5% to 8% profits monthly
    Quote Originally Posted by saor View Post
    saor is a dumbass

  4. #4

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    If they'd seen this interview, maybe they'd have thought twice.

    He's not really answering anything asked and looks very unprofessional

    https://www.youtube.com/watch?v=vaQx9Oh9T_g
    Jägermeiʃter can fix that!

  5. #5

  6. #6
    Super Grandmaster NarrowBandFtw's Avatar
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    Quote Originally Posted by Dolby View Post
    If they'd seen this interview, maybe they'd have thought twice
    Dunno, there was a whole movie made about the MMM scam years before it ever landed in South Africa, and people still fell for that one ...
    none so blind as those who refuse to see

    http://lucidramble.com

  7. #7

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    The only thing I can't understand is, where are all these stupid gullible people when I need some money?

  8. #8

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    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
    Jägermeiʃter can fix that!

  9. #9
    The Legend Pho3nix's Avatar
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    Quote Originally Posted by Dolby View Post
    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
    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 ..
    Disclaimer:All posts are personal opinion and not the opinion of anyone else or any other entity.

  10. #10
    The Legend Pho3nix's Avatar
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    [QUOTE=ForceFate;19896052]More

    Name change?
    Disclaimer:All posts are personal opinion and not the opinion of anyone else or any other entity.

  11. #11
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    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/pro...ested-20170616
    I am of a nation that would not allow that fear of death, of torture, of imprisonment, of exile or persecution should result in the perpetuation of injustice.

  12. #12
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    Quote Originally Posted by Dolby View Post
    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
    Quote Originally Posted by Pho3nix View Post
    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 ..
    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.
    Quote Originally Posted by Rouxenator View Post
    Aye, but 'tis rare. That's my thing, rare no matter if it's POS

  13. #13
    The Legend Pho3nix's Avatar
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    Quote Originally Posted by Messugga View Post
    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.
    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?
    Disclaimer:All posts are personal opinion and not the opinion of anyone else or any other entity.

  14. #14

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    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...
    I have signed up with Bitco and it's by far the best internet I have ever had. Get a quote

  15. #15
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    Quote Originally Posted by Pho3nix View Post
    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?
    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.
    Quote Originally Posted by Rouxenator View Post
    Aye, but 'tis rare. That's my thing, rare no matter if it's POS

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