Swindle or not?

[James Austin]

I came across a "verified" trading account (link) at myfxbook with some interesting stats; +22% av. month and a mere 1.65% drawdown. However, the history is still in its infancy at 5 months.

The trading team employs a non-directional (fancy!) forex strategy. And they are inviting investment in various "programs" (link). Which got me thinking......

What are the objective measures that I can use to avoid being swindled?

Is the rate of return / drawdown a red flag?

Or the fact that the "trading teams" broker is offshore, regulated in St. Vincent and Grenadines?

Perhaps the fact Intelligent Capital's website has no phone contact, should raise questions?

I'm grasping at straws here. Your input is appreciated.



**btw, I have no association with the organisation in question


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[cynic]

https://www.moneysmart.gov.au/scams...licensed-companies-list/i/intelligent-capital

 

[James Austin]

https://www.moneysmart.gov.au/scams...licensed-companies-list/i/intelligent-capital

Thanks. But I dont think is the same company.

 

[greggles]

They are offering 3% monthly, 12% quarterly and 36% half yearly returns. I just don't see how that's possible.

They say they use algorithmic trading with ultra-low risk and have negligible drawdowns. 36% half yearly returns with ultra-low risk doesn't make any sense. If it sounds too good to be true...

For those doing research on this mob I have attached their Brochure to this post.

 

[James Austin]

They are offering 3% monthly, 12% quarterly and 36% half yearly returns. I just don't see how that's possible.

They say they use algorithmic trading with ultra-low risk and have negligible drawdowns. 36% half yearly returns with ultra-low risk doesn't make any sense. If it sounds too good to be true...

For those doing research on this mob I have attached their Brochure to this post.

You are right, it does sound too good to be true. However their myfxbook (link first post) says they are well on track.

Future results are another matter of course.

 

[basilio]

However their myfxbook (link first post) says they are well on track.

Really ? Well then there should be absolutely no problems. Put your house your first born and your grand mother into it and in a couple of years you will sitting pretty...
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Every sinew screams scam. Perhaps you should check out who the principals are what there form is. Fact of course is if they were so crash hot...why would they bother using other peoples money ?

 

[greggles]

You are right, it does sound too good to be true. However their myfxbook (link first post) says they are well on track.

Future results are another matter of course.

From their FAQ:

Are the returns guaranteed?

We are not giving a contractual guarantee of performance as we feel that this is an unhealthy way to manage expectations. If clients enter into Forex trading they should expect losing months and be prepared for them. However, having said that, the nature of our strategy means that losing months are highly unlikely. This is because under our strategy we take no directional risk. We do not need to guess which way the market is going, as with typical trend or breakout type trading (which can result in good months and bad months as experienced by most professional traders). In our case, under normal circumstances, you should expect us to deliver the performance we state, month after month. Drawdowns are minimal (under 5%) and there is virtually no prospect of account loss. However, as with any investment there is always the possibility of some unseen event affecting the ability to execute orders which could impact performance.

Have you had any losing months?

No. Nor do we expect to have any losing months with our strategy.

How long will you be accepting new accounts for?

Our trading results are among the top 1% of money managers globally and we are only accepting new clients until the additional liquidity capacity which we have recently put in place is filled.

They use a broker regulated in St. Vincent and Grenadines (ACCFX.com) and they won't let you use another broker. It just doesn't pass the smell test for me.

 

[James Austin]

I agree greggles. The use of this broker raises a red flag that I havent been able to resolve.

As for the trading performance, I cant fault it to date.

 

[cynic]

Thanks. But I dont think is the same company.

My apologies! A careless error on my part.

Anyhow, further enquiry into (the UK firm's) chosen broker, reveals "ACCFX" to be the trading name of "Alpha Capital Markets limited", which, according to the following news article, appears to have been undergoing some changes in recent years:
https://www.leaprate.com/forex/inst...al-markets-post-2-1-million-loss-in-2016/?amp

 

[kahuna1]

Swindle /....


I read their blurb and what crap .... seriously ... with over 30 years experience .... well I started in fx in 1983 as the trainee dealer and well ended up being head of this and that .... I would not use their prospectus to wipe even my least fav persons bum with in fear of the crap that may injure even someone I don't like.

Report to ASIC and get them removed. Thats my objective tip.

Nothing is free. NOT A THING ... and if its too good to be true, its going to hurt you !!

 

[greggles]

My apologies! A careless error on my part.

Anyhow, further enquiry into (the UK firm's) chosen broker, reveals "ACCFX" to be the trading name of "Alpha Capital Markets limited", which, according to the following news article, appears to have been undergoing some changes in recent years:
https://www.leaprate.com/forex/inst...al-markets-post-2-1-million-loss-in-2016/?amp

Alpha Capital Markets has some terrible reviews over at FPA: https://www.forexpeacearmy.com/forex-reviews/11106/www.alpha-capitalmarkets.com

 

[cynic]

I agree greggles. The use of this broker raises a red flag that I havent been able to resolve.

As for the trading performance, I cant fault it to date.

<6 months data from a company claiming to have been developing automated algorithmic strategies for 9 years!
Perhaps it might be prudent to insist on seeing their results for the preceeding 8 and a half years before gravitating to such conclusions!

 

[kahuna1]

Oh read it again ...

their whole TEAM only has 30 years experience .... holy sh$$it !! Experience is nice, track record better, but these guys are scammers .... SCAM SCAM SCAM

What are they called ? Insult ... intelligent investors, implying unless you get scammed by these wankers, your stupid ?

I read on ... and on and on ... its a scam scam scam ... oh your money is insured ? Insured from crooks ? Please send MONEY .... and if you don't start at over 10k ur not a member of the club not an introducer ? Sounds like a pyramid scheme gone mad.

Is this some IQ test ? OR is it candid camera ... a joke ? No its I suppose real and it takes just a few and hey presto your money is safe in Nigeria ... NOT ... your money is GONE >>> SCAM ALERT

 

[James Austin]

<6 months data from a company claiming to have been developing automated algorithmic strategies for 9 years!
Perhaps it might be prudent to insist on seeing their results for the preceeding 8 and a half years before gravitating to such conclusions!

Yes, more data is preferrable; plus a trust-worthy broker.

 

[James Austin]

Oh read it again ...

their whole TEAM only has 30 years experience .... holy sh$$it !! Experience is nice, track record better, but these guys are scammers .... SCAM SCAM SCAM

I hear you. But the blurb doesnt bother me.

It's the lack of data and the choice of broker.


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[James Austin]

an email exchange with IC.

My email:

Would you consider offering Global Prime as a broker option?
They are an exceptional broker providing excellent liquidity, spreads etc.; see reviews.

To be frank I cannot proceed with your current preferred broker.​

IC reply:

OK we respect your decision.

However please understand that we are involved in professional arbitration trading. It has taken over 2 years to setup a bespoke global liquidity structure to accommodate our trading flow. We work very closely with ACCFX in this regard and this is certainly not a "rinse and repeat" operation. There is currently over $180m under management in real funds on this structure and it is unlikely that you will find anything that matches our offer elsewhere. We are trading within the understood flow limitations of the LP's we work with and it requires inside knowledge and a very sophisticated structure to do what we are doing. We have worked closely with ACCFX and we personally are happy with their service which is exceptional, despite anything you may read to the contrary.

Although Global Prime has an excellent reputation, it would take a great deal of additional dedicated additional testing to determine if our strategy would be effective there, added to which we would need to cultivate internal relationships with both the broker and the liquidities. This is is not something we are seeking to do at the current time.

We are happy to answer any further questions you may have, otherwise we wish you every success in your trading journey.​

$180m! Sounds terrific, but the statement has actually increased my doubt.
Where are the audited accounts substantiating the statement?
Why isnt there more historical data?
Where is the flood of internet chat about the fund?
etc etc


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[IFocus]

JA its a scam hang around markets long enough you will see hundreds of these

 

[kahuna1]

Oh get a real Galah !!

I love this one so much its my new picture !!

 

[James Austin]

JA its a scam hang around markets long enough you will see hundreds of these

Yes, I have seen the light.



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[James Austin]

Oh get a real Galah !!

I love this one so much its my new picture !!

Your bird is not as good as his.


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