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

  #165 (permalink)

siam, west coast andaman sea
 
Trading Experience: Master
Platform: ninja
Favorite Futures: gc, cl, tf, 6e
 
nakachalet's Avatar
 
Posts: 512 since Aug 2011

rogerf, would you like to prove your theory of 16 acct, pls?


rogerf View Post
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

hi again, rogerf:

thx for presenting an interesting theory of 16 acct.

since 99% of us here are not proprietors of anything, so it is a kind of difficult to fathom your wisdom in trading theories and practices and such, would you kindly for these traders benefit, exemplify in further details the theory of 16 acct, pls.

as a simple minded trader among numerous learned and more experienced traders here, i was just wondering if there is an over simplification in your postulation some here....?

to subdivide the 16 acct into two groups of 8, and each 8 represents long and the other 8 to represent short....; then from these two groups of 8, further subdivide them into 2 groups of 4, then 2 groups of 2.... so on and so forth....;

in terms of mathematics, your postulation appears entirely probable and agreeable,

but in terms of practicalities and realities in trading, it is conceivably difficult to reconcile the two into one practical and logical conclusion and summation, that....

in order to attain per your quote--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....

and in order for anyone to attain such theoretical ultimate achievement.... the longs group would always have to be consistently profitable, or that the other shorts group would likewise always have to be consistently unprofitable.... or vice versa....; is such an attainable feat in practical terms and realities under present trading conditions, pls?

perhaps, you could help me understand the inconsistency and irreconcilability in my own little easily confused mind.... which i would be very appreciative indeed.

this is in no way a challenge to you or your trading ability or anything like that, ok? it is just that because of my own simple mindedness, i could not completely comprehend your entire theoretical framework, OK? thx rogerf for your generosity to us members of bm community.


Last edited by nakachalet; October 16th, 2011 at 08:27 AM.
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