I used to be an independent trader. Year after year I trade for my own 'till I finally decided to set up a team. Together, we enhance our trading system to be as simple as possible and forgetting any kind of complicated theories that we've learned before.
I trade manually and never use EA, never will! I just follow one simple method / system that so called "counting probability". I'm counting charts, not gambling.
For those who would like to subscribe to our signal through MQL5 : 1. You can just ignore the notification about symbols issue (continue to the next step) as we only trade currencies & gold in this account now 2. We trades on a plain symbol now, so the MQL5's copy trade function will work properly (again, you can ignore the symbol or suffix notification) 3. We still trade indices but in a separated account which can only be subscribed through our own copy trade system*
Many of you maybe still have no clue why we suddenly closed our master account in FG and terminated our partnership with them. So, let me reveal all about it… It all started with one day full of incidents caused by the broker that I’ve been using for these past 4 years which is Futures Galleria. On Monday, 18 August 2014, there are 2 issues happened:
1. Lot size configuration changes
As we all know, FG was using 10,000 of contract sizes before. That’s why in our trading history, everytime we traded 10 lots was calculated as 1 lot.
On August 18, 2014, FG changed their lot size into international standard but they forgot to convert all clients’ open positions as well. Of course for clients who didn’t get converted will be automatically suffered 10 times profit/loss for every open position they have.
My account became one of their victims because I had 3 open orders that day, all in negative positions, and all calculated as a standard lot. It’s affected my drawdown and nearly blew my account.
2. Unknown USDCHF trade
During US market time, suddenly there was one USDCHF trade opened in my account while I didn’t make that trade. To be honest, I know about this trade issue from my subscribers.
FG revised this trade before I even realized. Maybe that’s why between Simpletrader, MQL5, Myfxbook, and FXJunction were showing a different trade that day and I have no idea how could this happened.
I called FG directly to clarify this issue and they said they miss-placed orders between clients when they were in the middle of converting client’s orders.
I also sent an email to MQL5, Myfxbook and FXJunction tried to clarify about the drawdown and everything caused by FG, but only Myfxbook responded me and fixed my account’s portfolio. Thanks Ethan! I really appreciate it.
Well, my portfolio means everything to me. It is my key to build my business and career. It’s not funny if I have to build another 3 years portfolio… 3 years! So yes, I will try to re-upload it on each site and let’s see if that work.
Those 2 issues really caused us a big damage for our entire business. Reputation, trust, portfolio, everything just name it, I lost them all in one day just because of that one stupid mistake and it’s not even my fault.
That’s why we terminated our partnership with them, closed our accounts, ask all 20,000+ of our clients to immediately close their accounts as well, so FG will at least suffer the same pain as us.
We’ve been doing business with FG for 5 years and we know that we were their most valuable IB. Never thought this would happen to us after all those years. So, for every broker who proposed to become one of our recommended brokers, you may want to reconsider it as this is the kind of feedback that you will get if you mess around.
I personally don’t trust brokers no matter how well-known they are or what regulators they use. Well, I had so many bad experiences with brokers all around the world. So, I only trust in the name of business.
As long as I can give them a good business, they won’t do any harm to me. At the same time, I automatically have enough power to fight them back when bad things come up. I guess that’s how business is done.
FG itself is actually a white-label of MRG (Maxrich Group) located in Manila – Philippines, while MRG is located in Hong Kong. That’s why the server is under MRG’s name. The only reason I trusted FG and keep using them was because I have more than 20,000 clients there. It’s a very good business for them, so there’s no way they want to lose it.
As for MRG, just like many other brokers in this world, MRG started their forex business from offshore broker under BVI regulation but they don’t do retail, instead, they just offer a white-label program. That’s why no one can ever find enough information about them.
But for me, I like MRG very much ever since I knew their main business is actually horse-racing. One of the biggest horse-racing companies in Asia. That makes me comfortable to do business with them because every big gambling company is not afraid to lose as long as the player is keep playing.
Same thing in forex business actually, brokers are not afraid to lose as long as you bring 10 more friends with you. And if your 10 friends also keep profiting, make sure each of them also bring another 10 more friends.
Anyway, looks like our action got MRG’s attention. They called us directly and invited us to meet them in person to settle this issue nice and gently in their office in Hong Kong. I don’t know what they are up to, but I got nothing to lose now. And as I said earlier, my portfolio means everything to me. If there’s somehow I can save my portfolio, then I will definitely do it.
So, here I am now in Hong Kong, and going to meet MRG’s people this afternoon.
I’m also thinking to spend more days to have a little visit to Macau and Lan Kwai Fong. So, if anyone is here too, maybe we can meet up and have drinks together.
As we all know, the past 2 months were the worst months ever for our career as a signal provider and also the biggest losing months after 3 years. It became the worst not because of the result, but it’s because we broke our own rules hence affected the result. Here are some rules that we broke:
1. Didn’t use stop loss 2. Hold position(s) for too long 3. Believing/loving too much to one theory (in this case – chart pattern) 4. Exceed our loss tolerance level 5. More than one average position in one pair 6. Force ourselves to trade during bad markets 7. Put ourselves on hoping instead of counting (read: gambling)
But somehow it’s also the most valuable lesson for all of us especially me. So, let me tell you about what really happened in those months.
Yes, this was my fault. I lose my focus on trading and the biggest distraction was because I got too excited on the business side. There are so many business opportunities approaching us and keep coming in. I rarely came to the office and spent most of my time meeting new people for the business purposes.
Until one day when I had a full team meeting, I heard a lot of complaints and issues, most of them were because of the trades.
First, the gold trades, this was when all “the bad lucks” began… Many subscribers were complaining about the gold trades and having a serious problem with it. I decided not to trade on gold unless it’s showing a strong confirmation. It turned out to be straight gold losses.
We scared people away and ourselves as well without realized that gold has contributed a quite big gain of our entire portfolio.
Many of our clients and partners were following us through MQL5 and FXJunction by reading its comments and reviews. Subscriber’s argument becomes their argument and their argument becomes our headache.
Now I understand why fund managers don’t show their trades or speak directly to their clients, it’s simply because of this psychological thing.
We feel like we owe them trades, profit trades. It’s like we must prove that we can beat the market no matter what and it has to be “now”. We forced ourselves to trade and have to be profit trades in order to cover the losses. The more we try, the more we lose, and this is what the theory called the revenge.
The most annoying part is when someone asks me, “any trades for today John?” or “how do you see the market today John?” and so on… Wait, that’s not the worst, “I’m paying for your signal so why don’t you make any trades”, that’s the worst!
I mean, don’t you people learn about what makes people lose so much money in forex? It’s when they try to make money everyday or in every single trade. And what makes them lose deeper? It’s when they seek for revenge.
Trading is about waiting for the moment, not seeking for the moment. How about the risk? I think each of us really should take a review on how we manage our risk. But yes, we finally fell into the same hole, broke our own rules, just like everybody
In short, we were no longer trade for ourselves without burden as how we used to be, instead, we trade for the sake of clients, subscribers, and partners. We trade for our faces – reputation.
Well, this is what social trading taught us and I guess this is the bad side of social trading for signal providers. I personally prefer Myfxbook or FXJunction system. It’s because we only get commissions based on per lot traded. This way, we don’t feel like owe any trades to our copiers even just to cover the subscription fee. But it’s just my personal opinion.
There will always be some bad months for traders. Every trader has their own method, and every method has its own bad months. Take a closer look at our portfolio, there are months when we didn’t trade at all.
Anyway, I’m not blaming social trading or subscribers or anything at all. Again, it’s my own fault. I should have known how to handle things like this. I believe it’s a part of learning curves that everybody must been through and that’s so we remember it. The rest, only time can answer.
One thing for sure, we won’t stop, we will keep trading. This is how we make a living and this is what we are good at, because we are traders!