Has anyone ever heard of Felton Trading? (www.feltontrading.com) | Trading Reviews and Vendors


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Has anyone ever heard of Felton Trading? (www.feltontrading.com)

  #164 (permalink)

Victoria, TX
 
Trading Experience: Master
Platform: NinjaTrader
Broker/Data: Mirus Futrues, Zen-Fire, IQFeed, Kinetick
Favorite Futures: 6E, CL, GC
 
rogerf's Avatar
 
Posts: 132 since Apr 2010


acbrasil View Post
Hi Roger, thanks for taking the time to reply. Yes, you are very right. There are a million get-rich-quick schemes out there and because of this, any legitimate provider may be automatically denounced as a snake oil salesman in public forums. (50 pages of Google Searches revealed a few comments along those lines for your sevices). The problem is that live results are hard to come by so no one can trust anybody. Metatrader definitely has ninja beat in the area of results publishing. Sites like Mt4stats show the good and the bad. No way around it. If someone blows an account, they have to create another account.

I already understand divergences quite well and enjoy them when they show up. What interests me the most is the computer program (your indicators) which helps the brain for trade management. And how you use a whopping 2 contracts to get the results that you do.

Yeah, AC, we've been through the Snake Oil Salesmen gauntlet a few times, too....just not by anyone who has ever been an actual student. You'll find a few of them in futures.io (formerly BMT). It's ok though...better traders be too skeptical than too gullible.

There are a number of ways that trading system hawkers can demonstrate the effectiveness of their wares. All but one can be faked.

First, they can make up some numbers and claim them as true. You see that all over the place...."Our traders are getting over 400% ROI using our amazing Madoff Made Easy trading system....." Gimme a break.

Then there's testimonials. Time was, people believed in testimonials. I think they sold a lot of Geratol and Liver pills that way.

Most traders got wise and thumbed their nose at testimonials and outrageous claims. But a few suckers still remain and keep them in business. So, the ONLY foolproof way that the snake oil people could be stopped is by making them show actual results, right? Think again....

It's actually quite easy to produce actual valid trading results where a trading system is shown to never lose. This can make you millions if you have no scruples. Here's how. Open, say, 16 trading accounts at various brokers. On 8 of them, take a long position in a market that trends a lot and on 8 go short in the same market. At some point, you will have made 400 to 600% on your original account on half of your trades and lost that much on the other 8 accounts. You'll need to be well capitalized so that your brokers don't close out your position on the losing 8 accounts but, don't worry, you won't lose anything but a few commissions.

Now you have 8 accounts that have performed really well and 8 that didn't. Close out the 8 stinkers. Of the 8 winners, go long on 4 accounts and short on the other 4. Stay in your positions until you have made another 400 to 600%...actually, you can set your own goal. Want to make 1000%, just stay in till you get there.

You will have 4 winning accounts and 4 losing for a net gain of zero dollars. Go long on 2 and short on 2.....then long on 1 and short on 1. The entire exercise seems pointless because you don't make any money...actually lose a little in commissions. But what you will have in your grubby little hand is a trading account that shows a humongous amount of profit and no losing trades. You'll have another one that probably did pretty well too with just one losing trade.

With those two pieces of paper you can now call yourself an honest to goodness Trading Guru. You'll make millions bilking traders who will think they found the Holy Grail. Traders will flock to your booth at the trade shows and they'll trip over themselves getting their wallets out to buy your Can't Lose Trading System. And, it absolutely can't lose because it comes complete with a notarized copy of your actual trading results!

Get my point, AC? Even actual trading results can be a scam. The ONLY thing that can't be faked is actual live market trading. No smoke, no mirrors and no pony. It either consistently wins or it doesn't.

But understand, anytime you witness consistently good trading results, don't believe for a second that it's the trading system that's doing it. It's always the trader behind the system. To do what he does you have to know what he knows.

Roger

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