Earn2Trade Founder Charged With Fraud

Discussion in 'Prop Firms' started by LCK2000, Sep 10, 2020.

  1. This is fun to watch. I get my dose of schadenfreude
     
    #201     Sep 14, 2020
  2. traderjo

    traderjo

    S
    So why don't you disclose a simple fact "what is the real money in the so called 25K account?"
    if it is not $1500
    If it is really 25K in account lodged at the FCM by Helios per 25K a/c then be clear about it will add to the transparency!
    many suspect it is not 25K or real money only a % of it

    You either deflect the question or attack the person who asks this question as " negative from start etc"
    This is straight forward question
     
    #203     Sep 14, 2020
    clockwork71 likes this.
  3. Again.....
     
    #204     Sep 14, 2020
  4. trade2020

    trade2020

    E2T (and other tryout/funding firms) - Seems like alot of confusion could be avoided if you just gave the accounts different names instead of $_________ amounts

    For example the E2T mini gauntlet that is named "Virtual Starting Capital $150,000"
    It has a $9,000 profit goal
    It has a $4,500 trailing drawdown
    It has a $3,300 Daily Loss Limit
    It has a Max Position Size to start with of 4 contracts
    It has a Max Position Size allowed of 15 contracts

    Now the first thing is we need to know if E2T allows holding ES emini contracts overnight in mini-gauntlets from one session to another session (as well as over the weekend) --most companies do not--does E2T?

    CME current margin requirements https://bit.ly/3ivSl9V for holding ES contracts overnight overnight (one session into another session etc) is $12,000 per emini contract for ES ) So a trader would have to have $48,000 cash to hold 4 contracts overnight or a total of $180,000 for 15 contracts held overnight

    If E2T does allow contracts in mini gauntlets to be held overnight (one session into another session) then this account could be deemed a $48K to $180K acct - or the midpoint between the 2 which would be $99K (round up to $100K)

    If on the other hand E2T requires mini-gauntlet traders to be flat at the end of each session then most brokers only have a $500 per ES emini contract requirement for daytrading if you are flat at end of each session - in that case then this account might be more aptly named
    $2,000 to $6,000 - or could just be named $4500 account to signify the $4500 max drawdown or could be just named "4 contacts to 15 contracts" with no dollar amount in the name at all




     
    Last edited: Sep 14, 2020
    #205     Sep 14, 2020
  5. Overnight

    Overnight

    I tried to argue this case a couple of years ago. I lost. It's a marketing tactic to attract folks. It works for them...Thus, a great business model.
     
    #206     Sep 14, 2020
  6. trade2020

    trade2020

    Overnight - too bad they should be more transparent
    unfortunately others in this industry like Topstep and virtually every other tryout firm uses the same marketing tactic math

    SMB no longer offers their tryout program but at least they did not use such a 'tactic' when describing their tryout. I dont think Apteros uses this "marketing tactic" either and is more upfront about what it really is

    The funding from the company is the max drawdown and the max daily loss limit
    that is how SMB described it and Apteros describes it and that in my opinion is how every trader should view it.

    FTMO uses the same marketing tactic as Topstep and E2T but at least FTMO provides a much better deal (in my opinion) despite the same marketing tactic.
    At least during the tryouts FTMO does allow overnight holds (whereas others do not) (not sure about the funded acct w/FTMO). Also FTMO offers a large $10,000 max fixed drawdown (in both tryout and funded) whereas most others top out at $4500 and its trailing --not fixed

    In any event its up to the trader to thoroughly research all their options before investing $100 to $600 in a tryout instead of just simply relying on what is stated in marketing and advertising by the various firms

     
    Last edited: Sep 14, 2020
    #207     Sep 14, 2020
  7. Of course there is an element of marketing in the name of the account size, but that does not mean that the funding firm is not on the hook for that amount.

    I want to add that our company does offer overnight positions through our original Gauntlet account. It is a 60 day examination that also offers a fixed drawdown that is based on performance. Many candidates often overlook the Gauntlet in favor of the Gauntlet Mini, but the Gauntlet is a great option for traders who want a fixed drawdown and the ability to hold positions overnight.

    Link to the Gauntlet page here:

    https://www.earn2trade.com/gauntlet
     
    #208     Sep 15, 2020
  8. longshort

    longshort

    Even when passing your stated rules, drawdown offered might just be $1K. And that's open-trade drawdown. You can't hold overnight on that kind of allowance unless all you trade is a single MES in which case you can do it anywhere for $1,320 margin + drawdown.

    Trade one ES and people are out on a spike, which is the intention. You charge $429 for an opportunity to maybe trade $1K + shared margin. With a failure rate of just 57% you already made the $1K from "examination" fees. Higher Gauntlet failure rate is your profit. At 80% failure rate you made $2,145 per each person that passes. At 90% you made $4,290.

    drawdown.png

    rules.png
     
    #209     Sep 15, 2020
    clockwork71 and traderjo like this.
  9. traderjo

    traderjo

    element of marketing in the name of the account size,
    .. element of marketing in the name of the account size, LOL

    SO finally you admit it .. but then why do you ( and others) need such "untrue" marketing technic
    talking about real funded account ( not the trial) HOW MUCH YOU REALLY PUT ASIDE FOR the nominal 25 funded account
    If you call it a 25K account there is only one meaning that the trader gets to trade a 25 k real USD account which then means
    - If only day trading is allowed then with a $500 margin per ES required by FCM he/she can trade atleast 50 ES contracts
    - If overnight is allowed then only 2 ES contracts ( $12000 margin per ES_
    By refusing to tell the truth do you think you are enhancing your reputation? and specially when there is so much negative publicity you are getting! :wtf:
    In comedian Russell Peters' words BE a Man!
     
    #210     Sep 15, 2020
    clockwork71 likes this.