Generally speaking, I’m very skeptical of anyone selling Expert Advisors (EAs), for two reasons: 1. from the buyer point of view, believing that you can get your own ATM for the price of an iPhone or less shows lack of understanding of how the world really works. 2. from the seller point of view, it doesn’t make any economic sense to sell something that supposedly produces triple digit returns annually for a fee instead of using it to manage outside capital.
Today I’m going to address a real piece of work, RevTraderPro, which is used according to its creator, one Doug Price, by wealthy clients with $10+ million. In order to get a chance at multiplying your money some 4.000% in a year (!), you’d have to spend around $700-$750, depending on VAT and other taxes. In any case, it comes with 60 day money back guarantee, so what is there to lose, right ? Just read on, by the time you finish this article, you most probably won’t be willing to part with your money anymore.
Let’s see what’s wrong with the ‘Incredible gains in forex’ made by RevTraderPro:
1. Already their homepage gives us a taste of what is to come.
Leaving the hard-selling aside, do people with $10+ million dollars really compound their wealth at the pace of 4.000% a year ? In what universe is this happening ?
2. Looking at the statement on their website, I get the distinct impression that we’re dealing with a fabricated one. I know, they also have the same statement on a live, Myfxbook verified account. So how is it done ? I’m afraid I don’t have a definite answer to that and I will refrain from speculating as long as I don’t have any proof.
There are several wrong things in the picture above, and I have highlighted them: Firstly, the ticket numbers per currency pair are consecutive. This doesn’t happen, unless you make up the data in an excel spreadsheet. Secondly, there is a GBP/USD trade on 10th October 2014 which is closed at 1.6181 and the same second another trade is opened and now the price is 1.6207. 26 pips difference within 1 second on a dull day ? It should be obvious that we’re dealing with fictitious quotes here.
3. I looked at the first few trades of the account – they are the same in the statement listed on Myfxbook as on the website. If you just pay attention to the three NZD/USD trades highlighted: the loss on the first two 8 lots trades up to the point the third 8 lots trade was opened was $80/pipX55pips + $80/pipX13 = $4400 + $1040 = $5440 which is more than the entire deposit.
This further points to a complete fabrication of the statement. But even if somehow there was a reasonable explanation for all the red flags (highly unlikely) – what kind of trading is this when you open 24 lots ($240/pip) in an averaging down fashion with a $5k account ?
Let me end with a quote from the disclaimer you can find on RevTraderPro homepage: ‘The typical purchaser does not make any money using this system.’
Update October 2015: I’ve come to the conclusion that Synergy FX is most probably a scam broker, read the new article here.