3 Retails FX Scandales You Need to See
There is seemingly no end to the massive amount of scams and scandals in the forex trading space. There are lots and lots of exposed scams out there, and probably more that are yet to be discovered. In this post, I have highlighted three forex trading signal services that had disastrous endings. Here goes;
Henry Liu – 10K to 1MM
Henry Liu has been involved with the commercial side of retails trading for many years. I cannot remember exactly when I heard about him for the first time, but it is several years ago. At first he used to run a site named something along the lines of FX News Wiz, where he sold forex signals. As far as I remember, this was the first time where he actually shared the thoughts of trading an account balance from USD 10,000 into 1 million USD within a period of short time. For some reason, the site was shut down, and a new site was opened, where Henry Liu sold his book on trading the news in the FX market; Newsprofiteer. Not too long after that he started a paid service where you could follow him, trading the news, live. Henry Liu’s next project was named 10K to 1MM; a paid (an expensive one, I might add) service, where Henry would show you his plan on how to trade an account with a balance of USD 10,000 into USD 1,000,000 over a period of 12 months.
The Plan For My Trading Formula Is Simple…
Our final goal is to reach the 1 million dollar level and we have specific daily plans. But the best thing of all is that we are going to take baby steps. It’s almost impossible if we were to try to make 1 million straight from a $10,000 account, it’s just a disaster waiting to happen… but I know if I were to tell you that “let’s try to make 1% return on your account today,“ you’d have no problem with that, I mean $100 a day in profit from a $10,000 account isn’t so tough… and by applying the same principles, I’ve divided the 10kto1mm plan into 12 phases or 12 periods. Each phase lasts about 30 days, and depending on market condition, it’s possible that we may complete a phase even before the 30 days.
Things went bad and members who followed him started to get liquidated left, right and center. The 10K to 1MM program was “paused” (discontinued) in phase 2 and there has been no update since then.
Casey Stubbs – Winners Edge Trading – Explosive Growth Mentoring
Casey is the owner of the blog winners edge trading; a site that has been around for years with information on forex trading. Over the years we have seen several different programs, services and EAs from Casey Stubbs. The latest program from Casey Stubbs was named Explosive Growth Mentoring, where the plan was to rapidly build a tiny account into big figures. In the video presentation for the service, Casey guaranteed to double his account within the first month of running the service. That didn’t happen. In fact, the account used for the program was up over 4,000% (just not within the claimed month). But this dropped off a cliff in a matter of two days, going for 4,000% to -100% – This is what was shown on the connected MyFxBook account at least. In addition to this, there has been issues with the refund promised to clients. As Casey Stubbs didnt delivered on the on the promised gaurentee, clients of the “Explosive Growth Mentoring” program was intitled to a full refund – But getting that refund is seemingly more difficult than you would expect:
i had purchased the explosive mentoring program from winners edge trading on 27-11-2015, and paid 2500$ for it, casey stubbs had made a gurantee that he will refund us if he failed to double his account during three weeks time period, after he failed to do so i had claimed a refund , and they replied many times that they will process the refund request as soon as possible but till now three months had been elapsed and nothing happened, i urge you to review this case meticulously, and i will not close this complain till they refund me.
SPM Capital Management Signal
SPM Capital Management was a signal / copy service by a guy named Steve. The whole setup was connected to a site named forexsignals.com. You can see the whole thread here. Steve promised clients and potential clients to follow a strict set of rules in his trading; one of his key points was never to have a drawdown of more than 15%
Maximum drawdown will not exceed 15%. Please note that the Maximum % Drawdown Allowed for this system is set at 15% within SimpleTrader.
After a period of time, a guy named Vlad highlighted SPM Capital Management as a dangerous and toxic trading strategy (which you can read more about here
Steve didn’t fancy these thoughts and posted the following in the forum:
Merry Christmas all from the Philippines where I’m currently enjoying a holiday visiting my wife’s family.
JLT is full of BS, and I would like to add that I’m now number 2 on MyFXbook Autotrade.
Also 100% gain per year is not inconceivable- I have stated in my bio that my target is 60% pa so I’m just doing better than expected.
I see JLT has a 1 month track record. I have been consistently profitable for the last 14 months.
I have a few trades open, but i’m taking a holiday and will be back in full force around the first week of January. However markets are quite at the moment and there is no reason to get into new positions now (apart from the GBPUSD short I have just taken as a medium term trade).
Hope you all had a great Christmas and wishing you all a Happy New Year!!
Not long after this comment was posted in the forum did Steve’s account take a massive hit – needless to say, more than the max drawdown of 15%. Clients weren’t happy and Steve´s partnership with forexsignals.com ended.
The three examples highlighted here goes to show that in spite of promised, verified performance (or lack of same) and guarantees, things can easily and very fast go the wrong way! When this happens we are left with apologies and excuses, but what is that really worth, when you just threw you account balance down the drain?
Please share your own experiences with the sketchy world of forex trading programs and services.