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Can my broker see the detail of my EA? - page 2

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bernd
986
bernd  
wing:


in fact, you misunderstand my meaning. "broker will be the most smart trader" is not because of my EA. it is because if he can see the details of EA from traders, he can choose the most profitable EAs among all traders so that he can finally become the most smart trader.

He doesn't need to see any details about the EAs. He just has to run a query on the server's complete order log, grouped by customer ID, summed up the profit and ordered by sum(profit) in descending order to immediately see who is his #1 profitable customer (this is the one who will be bullied until he quits or directly thrown out (see below)).

Actually the broker will not even need to waste his time with that and instead simply rely on the statistics that say: "most traders are unprofitable", the broker will win if he simply takes the other side of every trade that is smaller than say 1 lot (or any other lot size the broker is comfortable with taking the "risk"). This way he will inevitably win, like a casino. A constant stream of money will be rolling in faster than he can ever spend it. This is the only holy grail in this business that is guaranteed to work all the time.

wing
605
wing  
7bit:

He doesn't need to see any details about the EAs. He just has to run a query on the server's complete order log, grouped by customer ID, summed up the profit and ordered by sum(profit) in descending order to immediately see who is his #1 profitable customer (this is the one who will be bullied until he quits or directly thrown out (see below)).

Actually the broker will not even need to waste his time with that and instead simply rely on the statistics that say: "most traders are unprofitable", the broker will win if he simply takes the other side of every trade that is smaller than say 1 lot (or any other lot size the broker is comfortable with taking the "risk"). This way he will inevitably win, like a casino. A constant stream of money will be rolling in faster than he can ever spend it. This is the only holy grail in this business that is guaranteed to work all the time.


7bit,

Haha, I am now more confused after seeing your words.

How can the #1 profitable customer be bullied by the broker?

Is forex really a relatively fair game for traders than stocks?

How can a trader survive in this game and be profitable?

wing

JC
1499
JC  
7bit:

He doesn't need to see any details about the EAs. He just has to run a query on the server's complete order log, grouped by customer ID, summed up the profit and ordered by sum(profit) in descending order to immediately see who is his #1 profitable customer (this is the one who will be bullied until he quits or directly thrown out (see below)).

Firstly, most brokers have an STP/ECN option as well as running a B book, and in your scenario they would presumably encourage the trader to go STP rather than the firm acting as counterparty to the trades. Even if they can't pass on the exposure, there's a degree to which brokers have to treat successful traders as a marketing cost.

Secondly, the trader's total profit isn't the right metric. It's much more complex than that. The broker has a book of orders, and net exposure resulting from that. In your scenario you would have to establish whether the successful trader was making their money "from the house" or from other clients. Taking a very crude example: 10 unsuccessful traders go long 1 lot swissy. The 1 successful trader goes short 10 lots. The successful trader in effect makes money from the unsuccessful traders. The broker has no net position - but collects trading charges on 20 lots. The dangerous scenario isn't a successful trader per se, but one whose success is leading to net exposure with the broker acting as a losing counterparty to the successful trades.

Thirdly, many customers have multiple trading accounts with varying success across each one, but you'd be amazed how few brokers are able to do good aggregation by client rather than account. If you kick off the most profitable account, you're potentially jettisoning a client who is net loss-making. This becomes less and less hypothetical as more and more US customers have two accounts to get round the hedging rules. One account shows a profit; the other account shows a loss...
zzuegg
1505
zzuegg  

from my experience i cannot support the myth that the broker cheats on you. I have seen the market missing my stoploss for 0.3 pips and then heading into my direction. this would be an opportunity for a cheating broker where i would not even suspect him to cheat on me.

Only the fact that most retail trades loose money in the market and that people by nature don't like to admit personal failure but instead accusing another institution/person leads to the conclusion that the broker has to cheat on you. (if he would not cheat on me, i would have made money).

The most often heard argument are spikes, but at least i believe that in a market where millions of lot are being traded sometimes spikes have to be in order you can be shure that your price is not been smoothed by a man in the middle. There can be large traders or institutions who hunt your stoploss placed at the last fractal, but they don't do it trough cheating but instead trough their capital. Hey, thats the market.

I at least killed a few small accounts but i never had the feeling that it was brokers fault. I had to pay my lessions, but i have learned from the mistakes i made.

edit: at last, why would you give some insitutions thousands of dollars if you believe that he is cheating on you?

//z

bernd
986
bernd  
I was exaggerating. I just wanted to make clear that a fraudulent bucket shop has many options how to make more money but waiting for one of his customers to find the holy grail EA and then trying to steal it is certainly not among them. He would have to wait a few hundred years for this unlikely event.
wing
605
wing  

jjc, zzuegg & 7bit

thanks for your reply. You give me more clear picture on the issue.

wing

kmaw
23
kmaw  
qjol:

i don't know but it does't matter, because even if he can't read the EA, he can do a search, which account earn money, and build a program to do exactly the same trades

When you buy is buying and when you sell is selling....

Hi,

so besides, the broker, if we only have results, it's possible to find the strategy which was adapted to generate the results?

(am new as well)

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