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Retail Algo Trading Scam Details

Page no : 3

SMIFS LIMITED (35 Points)
Replied 22 October 2021

Precisely this. Many people think that by purchasing Algo one will automatically start making money. But the truth is that one already needs a proven strategy in order to win in Algo trading. Algo trading is just automated and takes emotion out of all the trades. 

Ram Krishnaswamy (4 Points)
Replied 04 February 2022

Dear Utsav,

I've been in the markets as an investor and trader for over 35 years. Never lost money in aggregate. Of course, you win some and lose some, but aggregate, s a long-term investor in good quality stocks, you can almost never lose.

I believe that you have little control over your gambling instincts and perhaps that IIT tag makes you think you are very good for the markets.

Let me assure you that far smarter people than you or me have lost their shirt in the market, especially when you trade and that too F&O. Fools venture where angels fear to tread.

I believe Tradetron clearly tells you to create an algo, backtest it, paper trade it for months if necessary until you are consistently making profits on a net basis and ONLY THEN go live. In addition, place only money you are willing to lose as your capital and use sound money management controls.

There is a running battle going on between SEBI, which has decided to become the moral judge of people losing money - whereas they should only be monitoring adherence to rules everyone has agreed to follow and other parties.

No matter what you do or say, algos and automation is a megatrend that is not going to stop whether SEBI thinks it is immoral or not. When you enter the trading arena, you are entering crocodile or shark-infested waters and just as in the case of the jungle, you cannot get in unprepared and then complain "Mummy" when you make losses. If you had made a profit, I'm sure you would not be crying like this.

Take this as lesson well learned (I learned mine back in the 1980s when there was no online trading and we learned about what stocks and dividends and ratios were before jumping in, invested on the value-investing basis, and held on for enough time to make money.

For example, 12k invested in 1986 in a pharma company is now worth over 45 crores with ZERO transactions in between ... just buy, lock it up and earn dividends, which itself has crossed 1.3 crores over these years. All your stuff on front-running, etc do not even apply here. So, you CAN make a lot of money if you follow sound investing principles and not get over-confident and jump into trading and that too high-frequency churn.

Now, you can run away like the many people I have seen over 4 major bear markets. Or you can educate yourself further by simply reading free stuff on the Net, tread carefully and try recovering.

Your call. No one is bothered about your complaint and in this big battle between regulators and players, this does not count. There are many like you who have  fallen and this is the price one has to pay when jumping in without learning the ropes and not having ANY control on one's gambling instincts.

Good luck with whatever you have chosen to do.


Ram Mohan Kapil (2 Points)
Replied 14 February 2022

I can understand your pain but your long writeup does not specify how non-compliance on part of these brokers is tantamount to cheating.    Government has rules .. a lot of rules and most companies fail to comply 100%.  While working on data of the Ministry of Corporate Affairs, I found that inida's top IT compay is registed as a consumer goods manufacturer and retailer.  that was not the only company, there were 1000s of them.  MCA took a big project and spent 100s of crores to cleanup such data.

You did a good job of audit and found some non-compliances, that's all!  there is no evidence or case of cheating.  


Ram Krishnaswamy (4 Points)
Replied 14 February 2022

Dear Utsav,

You spent 1.2 lakhs on a bundle of courses nd you didn't even learn how to protect your capital - which Warren Buffet says is rule no 1 and that information is FREE !!!

You did not set limits on your losses and believe the guys who lost your money, saying, "just put in some more and we will recover everything".

I've seen this many times in the past 3.5 decades.

Obviously, SEBI will open an inquiry. That means nothing. It proves nothing unless they gather information and arrive at a conclusion about whether there has been a fraud.

The fine print in applications to your broker, TT, etc will have covered all their bases. Since you probably did not read, understand or question those points, you jumped in and now that you have been cleaned out, you find it convenient to blame them.

At the most, it will be some sales person who may have made tall promises and that too verbally. Do you have documentary proof that some fraud was committed according to law? Not your opinion, but according to law. You probably don't and all this will come to nothing.

There is this other person who has said he lost 50 lakhs and with TT's algos has recovered 10 lakhs. At least he owns up to the fact that HE screwed up and not call everyone around a fraud. Contact a lawyer (if you have not already) and show this forum that yu actually have a case, not say SEBI has opened an inquiry, which they are bound to on a complaint and that establishes nothing.


Koushik Bharadwaj (7 Points)
Replied 29 July 2022

Hello Every one and specifically to Mr Utsav,

I have learnt trading in stocks & F&O since 2019.  Though I understand the basics of some Technicals, like Super Trend, EMAs, STOCH, RSI, Crossovers etc.... When we study those it looks promising and it feels so easy.  I have made huge money with just 25000 Rs and also lost money with 2L of Capital.  Reason, I made money from 25000 & the reason I lost money with heavy capital of more than 2L is the most important thing as a TRADER one needs to learn. 

I dont want to put more information here, let me come to the point Straight away.  I started developing a strategy from Feb 2022 and was able to crack a strategy during end of April 2022, So roughly 3 months.  So from May 2022 till day I am deploying that strategy using Excel sheet and follow the values in the Time frame.  Once I saw that strategy was working, I felt good. SO I started doing a real trade manually, let me honestly tell you, I lost money or rather my balance sheet did not grew.  But even during this manual trade, I did not loose huge money because i had set limits for the loss & I could exit early as possible (since may till today I lost only 50K).  But, I realised later that If I had stayed in that strategy for another some time i could have made huge amount.  This was the time I realised i am failing because of my emotions not my technical study.  THen I realised through my friend, about this Trade Tron.  So quickly prepared this strategy (I struggled initially) but later with the help in Youtube videos posted by TT & attending few webinars of TT I could create the strategy.  Started using the TT since 3 wks, I see a very good confidence about my strategy.  My excel paper strategy has now turned into Algo TT paper trading, with almost +45K in 2wks.  Started the Live Auto Trade already from Today, 26-July-2022. I See for retail traders like us & new comers with some technical background (trading) this Algo trading will overcome the emotional challenge that one has.  Honestly, it has helped me a lot so far.  Will update after my real trade result after couple of months, 

Others, I am looking for some information, How to know if TT is a legal trading partner as per SEBI or NSE?  I was looking for this information and I got this thread from Mr. Utsav. 

Thanks once again,

Koushik Bharadwaj

1 Like

Joffin Alappatt (2 Points)
Replied 02 October 2022

I think provision for retail traders to trade without viability to manipulable emotion bound method is necessary ( manipulable emotion bound method can be part of economic warfare through psychological warfare ) Algo quality verification is part of any trader's wisdom as in any business. It should not be monopoly to some large players. Also, cloud system with prevention on intrusion based malfunction and some insurance system for balancing such rare and extreme mishaps may be necessary.

Lex Field (Marketing) (12 Points)
Replied 27 October 2022

Cryptocurrency Investment Fraud
There are many types of cryptocurrency scams. Below are the most common ones.

Fake sites

Fraudsters sometimes create fake cryptocurrency trading platforms or fake versions of official crypto wallets in order to trick unsuspecting users. The domain names of fake sites tend to be similar to the domain names of the sites they are trying to imitate. Their differences from legal sites are so insignificant that they are difficult to recognize. Fake cryptocurrency sites often work in one of the following ways:

Like phishing pages. All the data indicated on them, such as the password from the crypto wallet and the phrase for recovering funds, as well as other financial information, fall into the hands of scammers.
Like a simple theft. Initially, the site allows you to withdraw a small amount of money. This creates the impression of reliability and profitability of investments, which leads to an increase in the amount invested. However, on subsequent attempts to withdraw funds, the site either closes or rejects the request.
Phishing scam

The target of cryptophishing is often the data of online wallets, such as the private keys of a crypto wallet, which are needed to access the funds inside the wallet. This type of scam is similar to other phishing attacks and is associated with the fake websites described above. The attackers send an email that prompts recipients to go to a specially crafted website and enter secret key details. Once the attackers get this information, they steal the cryptocurrency in these wallets.

Market buildup schemes (“pump and dump”)

In this case, a specific cryptocurrency or token is promoted by scammers through email or social media campaigns: Twitter, Facebook or Telegram. In pursuit of profits, traders are in a hurry to buy this cryptocurrency, which leads to a sharp increase in its price. The scammers then sell their assets at inflated prices, causing the value of the cryptocurrency to plummet. This may happen within minutes.
However, such scam methods can be avoided by using reliable crypto exchanges like https://cryptex.net/en.


Sophia Edwards (4 Points)
Replied 18 March 2023

These people cannot process a withdrawal I invested $59,579.00 with the broker wise banc and won a bonus of $179,834.00 I wanted to make a withdraw and they can't process it, I have been trying to get my money out since mid- July 2019. I have given them all my banking information: routing number, acct number ... and they cannot manage to process the withdrawal. I kept getting messages saying they are working on it, I wasn't able to withdraw my money from the account, thought I was not gonna see this day but God so kind. I was able to get solution to my withdrawals issue with my broker wise banc with the help of a recovery expert Mr Eddie Wilfred, whom was recommended on the broker reviews, he helped me to recover my funds including my bonus, I would not trust wisebanc to ever make my withdrawal go through so I had to seek help elsewhere and they already closed my account. They seem dishonest, I am happy I could get back my money from them, I advise everyone out there to be very careful with the brokers they invest their money with, in case you are reading this and you are already a victim of this fake binary broker, there's still hope to recover your funds, feel free to reach out to Mr Eddie Wilfred via his email address: eddiewilfred816 @ gmail.com and he will guide you on a simple step to take and get back your investment.


 


Sophia Edwards (4 Points)
Replied 18 March 2023

These people cannot process a withdrawal I invested $59,579.00 with the broker wise banc and won a bonus of $179,834.00 I wanted to make a withdraw and they can't process it, I have been trying to get my money out since mid- July 2019. I have given them all my banking information: routing number, acct number ... and they cannot manage to process the withdrawal. I kept getting messages saying they are working on it, I wasn't able to withdraw my money from the account, thought I was not gonna see this day but God so kind. I was able to get solution to my withdrawals issue with my broker wise banc with the help of a recovery expert Mr Eddie Wilfred, whom was recommended on the broker reviews, he helped me to recover my funds including my bonus, I would not trust wisebanc to ever make my withdrawal go through so I had to seek help elsewhere and they already closed my account. They seem dishonest, I am happy I could get back my money from them, I advise everyone out there to be very careful with the brokers they invest their money with, in case you are reading this and you are already a victim of this fake binary broker, there's still hope to recover your funds, feel free to reach out to Mr Eddie Wilfred via his email address: eddiewilfred816 @ gmail.com and he will guide you on a simple step to take and get back your investment.


 



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