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ASIC deals massive blow to Australian CFD industry

  • #41
  • Sep 13, 2019 3:06pm Sep 13, 2019 3:06pm
Oh Hudi - I feel your struggle. You have pushed yourself into the corner. You can not admit your defeat here, I fully understand that. So go on with your naysaying. But for all the other members of this forum this is a very valuable lesson.

He describes a basic averaging technique. Ok .. so what? This technique alone does not make a system profiatble long term. But as he never reached that level, he cannot be blamed for that. So yeah, averaging is something that people may dislike, thats ok, but it is a valuable tool relying on higher leverages. I worked long and hard to build strategies that partly involves grid/averaging. And if you just ignore Hudis hate you would see that the system is risk free already, even if it would blow out now. Why? Because more money already went out than in!

Quoting HudithePfupf
The lowest chart with 626% gain has an update from Jul 05,.... so you likely have blown this shortly afterwards....?
Fun fact: it is a simple myfxbook bug. The money is already fully withdrawn. In your face, Hudi. Picture attached. Have a close look at the date, loser! This one hits hard, doesn't it? Once again someone simply made money.

Quoting HudithePfupf
This looks like classical newbie bait material of a German snake oiler.
Baiting for what? Are you stupid? Or blind? Or both? Which part of I do not sell anything is hard for you to understand? And in which way does a nationality play any kind of role here? My only target in this discussion is to prove you wrong!

Now you can go on with your rant to cover your own inabilities.
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  • #42
  • Sep 14, 2019 12:50am Sep 14, 2019 12:50am
Quoting HudithePfupf
The average of all EA constructed this way would show that this approach does not have an edge.
Not taking any sides. I know, not just believe, based on experience, trading grids can be quite profitable. Grids do have an edge.

Surprisingly, a very popular driving video game shows exactly how to reach to the grids edge.
Maadik Hugiis. IQ 69.
  • #43
  • Sep 17, 2019 1:28am Sep 17, 2019 1:28am
Quoting Drolph
..... But for all the other members of this forum this is a very valuable lesson....s. {image}
Indeed a valuable lesson.... members can see the nervous brake down of a snake oiler that sees how spreading of facts hit his business model based on spreading lies. The way you act tells me you are somehow linked to the forex industry. Whether to a broker, a signal seller, educator, whatever.... you profit from spreading the lie.

To sell the message of beeing profitable is more important to you than actually being profitable.
  • #44
  • Sep 17, 2019 6:18am Sep 17, 2019 6:18am
You really have to adjust your tin foil hat. I am truly entertained by your timeconsuming detective journey on your conspircary theory thread.

You are accusing me for giving my opinion somewhere on the internet on a strategy!? Who are you?!?!?

Quoting HudithePfupf
members can see the nervous brake down of a snake oiler that sees how spreading of facts hit his business model based on spreading lies. The way you act tells me you are somehow linked to the forex industry.
The way you act tells me you are a notorious loser!

Whether this mentioned EA is sold or not, the FXCharger is not my code, unlike the systems shown some posts ago. There is not a single advertising or emphasizing from my side on a specific product on this forum. I did never and will never sell or advertise anything!

Quoting HudithePfupf
To sell the message of beeing profitable is more important to you than actually being profitable.
Did you read that sentence? When investigating thoroughly you should not have missed this important piece: I AM ENJOYING PROVING YOU WRONG!

I am fed up by people like you who are unable to achieve success here and transfer this inability into selective "scientific" arguments for their failure.

You can keep claiming that I am only lucky or whatever .. I claim otherwise. Until now I am right! You have to accept that, whether you like it or not.

What you do not understand is: Everything you are saying is your OPINION.

What I am showing is a FACT.

No matter how long or hard you are repeating your opinion - it stays what it is. Simple as that.
  • #45
  • Oct 10, 2019 2:20pm Oct 10, 2019 2:20pm
Quoting HudithePfupf
Typical profit growth curves of classical grid systems combined with averaging losers and increasing leverage to recover. A lot of small gains but only big winners after luck turns a big loser to the point you recover - then the system moves again as before. Most equity drawdowns recovered by averaging and increasing risk - a few partial blows explain the high drawdown up to 65% I have seen many charts exactly looking like yours showing impressive gains till they blow up within 1 trade (aka margin call). The lowest chart with 626% gain has an update...
What if you are wrong? What if he figured out a way to protect the flaw on that strategy? What if he does not blow?
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Quoting MoneyZilla
{quote} Not taking any sides. I know, not just believe, based on experience, trading grids can be quite profitable. Grids do have an edge. Surprisingly, a very popular driving video game shows exactly how to reach to the grids edge.
hahaha. You are kind of a Jedi master throwing away those tips / metaphors. What's the game name?
  • #46
  • Oct 29, 2019 3:55am Oct 29, 2019 3:55am
ASIC's proposal to reduce leverage to 20:1 for fx retailers will likely be strengthened by recent leverage changes in Singapore
FX Leverage Cut to 20:1 in Singapore
  • #47
  • Oct 29, 2019 4:35am Oct 29, 2019 4:35am
I think what's most ridiculous about this is that it actually puts traders at much more risk because they will need much more money in their accounts (bucket shops) in order to meet trade size requirements.

That is money now exposed to the market and so if you're caught in a trade when the market crashes or flash crashes or fat finger flashes there goes your account

The best thing about high leverage is that you only need 10-20% of your equity actually deposited in your trading account to trade.

Limiting leverage will never stop fools being fools. It's just another government intervention that will actually make things worse. History is littered with them.
Time hides Nothing
  • #48
  • Nov 28, 2019 4:13pm Nov 28, 2019 4:13pm
Quoting HudithePfupf
{quote} Indeed a valuable lesson.... members can see the nervous brake down of a snake oiler that sees how spreading of facts hit his business model based on spreading lies. The way you act tells me you are somehow linked to the forex industry. Whether to a broker, a signal seller, educator, whatever.... you profit from spreading the lie. To sell the message of beeing profitable is more important to you than actually being profitable.

I have to chime in, but I found this FXbook and...actually many more. I'm still fairly new to this game...but this has given me hope. You seemed a little harsh to the gentleman who posted his FXbook...mind you I didn't read all of this forum...

I've reached out to this guy, found him via linkedIn... chatted a bit. Nice dude...he manages $3 million where I think 10% is his own money...and he takes a 15% cut of profits. 5 years running on one account of around 200K, only two months of DD...one was -24% but he quickly recovered. Currently he's about -678 pips in the hole...at 13.80pips all on sells on GCHF... these losses equate to -5.98% of his account.... I believe whether you scalp...or trade mid term and do a Trend following technique...you should always know your exposure... he also doesn't use SL's....

Statistically his RR is shit on most of his trades... like 0.22 but he's around 78% win rate and manages position size. What I learned from studying his trades is if you know how to manage position size...it will be very difficult to blow an account. If all open trades hits a flash crash of 400pips.... or 800 pips.... what % DD will you have... focus on how you lose, versus how you earn...that's the lesson I'm learning now. Grid system can be profitable....and this guy is proof. I've found some other people actually on FF who trade similar and have even better numbers than him...

I believe the reason why so many people fail at this is....they give up when it gets hard... don't want to learn (or think)....or can't emotionally handle it.

Cheers.
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  • #49
  • Dec 18, 2019 8:12pm Dec 18, 2019 8:12pm
Quoting CindyXXXX
I think what's most ridiculous about this is that it actually puts traders at much more risk because they will need much more money in their accounts (bucket shops) in order to meet trade size requirements. That is money now exposed to the market and so if you're caught in a trade when the market crashes or flash crashes or fat finger flashes there goes your account The best thing about high leverage is that you only need 10-20% of your equity actually deposited in your trading account to trade. Limiting leverage will never stop fools being fools....

Can I have my say?
Absolutely. ASIC is seeking feedback from both issuers and consumers of CFDs and FX, and as you’re a consumer impacted by these proposals, we encourage you to do this.
You can provide a submission to ASIC on its proposals here.

If you have any questions, please let us know at [email protected] or start a live chat with us now.

I think it's to late now
  • #50
  • Dec 18, 2019 9:06pm Dec 18, 2019 9:06pm
I am totally unclear about what is motivating all this.

I guess I could read up, but if I know anything about regulations, they attempt to treat the symptom rather than the cause. Who are they trying to protect? And why?
  • #51
  • Dec 19, 2019 3:01am Dec 19, 2019 3:01am
Quoting LloydOz
I am totally unclear about what is motivating all this. I guess I could read up, but if I know anything about regulations, they attempt to treat the symptom rather than the cause. Who are they trying to protect? And why?
I would assume ASIC get a lot of complaints from retail public, some of them justified against unfair practice, but a lot (probably even majority) would be from disgruntled new traders who suffered some slippage, or got stopped out during swap when the spread widened ect. (basically traders who are ignorant of potential risks).

So I guess these new restrictions are to save the "greenhorn" traders from themselves, ASIC can receive less complaints and can be seen as doing something, thus justifying their existence.
  • #52
  • Dec 19, 2019 3:11am Dec 19, 2019 3:11am
XM Australia closed my account.
They told me is because of upcoming new ASIC regulations.
Strangely, ICMarkets Australia didn't close my other account.

So, are there new ASIC regulations for 2020 or not?
  • #53
  • Edited 7:18pm Dec 29, 2019 7:00pm | Edited 7:18pm
Quoting Dingoman-two
{quote} Can I have my say? Absolutely. ASIC is seeking feedback from both issuers and consumers of CFDs and FX, and as you’re a consumer impacted by these proposals, we encourage you to do this. You can provide a submission to ASIC on its proposals here. If you have any questions, please let us know at [email protected] ("[email protected]") or start a live chat with us now. I think it's to late now

what will be will be

they play the music I’ll just dance to it either way. Theres pros and cons to both... That i cant be bothered going into right now.

But another negative is of course that investment schemes/scams will be in epidemic proportions...

at the end of the day if you’re good enough to trade, capital requirements are just a number X.

i just worry about the guy now who instead of drawing down a measly $500 on his credit card is now forced to draw down $5000


https://m.youtube.com/watch?v=VeQRO4fXOKk
Time hides Nothing
  • #54
  • Dec 29, 2019 9:42pm Dec 29, 2019 9:42pm
Quoting CindyXXXX
{quote}at the end of the day if you’re good enough to trade, capital requirements are just a number X. i just worry about the guy now who instead of drawing down a measly $500 on his credit card is now forced to draw down $5000 https://m.youtube.com/watch?v=VeQRO4fXOKk
Quite so, if you know the utter bare basics about money management and capital preservation, who gives a toss if margin requirements are toughened up.

People trade using funds from their credit card? Beggars belief - I know that many folk would pay the deposit for an off the plan (speculative) high rise residential apartment with their credit card. That was a few years ago in Melbourne and Sydney (that was more like $40K). I digress.
  • #55
  • Jan 9, 2020 5:48pm Jan 9, 2020 5:48pm
anyone heard when ASIC is releasing their final decision?
  • #56
  • Jan 10, 2020 1:30am Jan 10, 2020 1:30am
Quoting PeterE
anyone heard when ASIC is releasing their final decision?
Seems they changed the terms and updated the definition of who qualifies as a wholesale client, which has already come into effect.

As for introducing tougher leverage restrictions for retail traders?
  • #57
  • Jan 10, 2020 4:55am Jan 10, 2020 4:55am
ASIC is attempting to ban binary options and reduce leverage on CFDs to about 10 times, which is in line with best international practice, particularly in Asian markets.
From what I read the regulator is particularly concerned about CFDs leveraged by 200 to 500 times and targeted at investors earning less than $37,000 a year. More than a million investors are believed to have lost about $2 billion in Australia and other markets, including in China and the US where they are banned.
  • #58
  • Jan 16, 2020 2:05pm Jan 16, 2020 2:05pm
While everyone's holding their breath... This is not a new piece, but at least it's a sliver of hope that ASIC has more common sense than others...

https://financialcommission.org/2019...client-losses/
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Timing Direction Strength
  • #59
  • Edited 7:58pm Jan 16, 2020 7:38pm | Edited 7:58pm
Quoting finessence
While everyone's holding their breath... This is not a new piece, but at least it's a sliver of hope that ASIC has more common sense than others... https://financialcommission.org/2019...client-losses/ {image}

I'd like to know how and where and any data used is sourced from.

Clicking on links deeper and deeper into the rabbit hole, I can find no source that can be verified. Inconsistencies are abundant.

"The Australian market for binary options and CFDs is growing rapidly, with the number of clients more than doubling in the past two years to one million clients (99% are retail clients and the majority are based offshore). During 2018...over 41,000 clients’ CFD trading accounts went into negative balance, totalling -$33 million (that is, clients owed money to the CFD issuer)."

I figure that to be about just 4%, your Honour. {edit "owed money to the CFD issuer" - oh, not just making a loss, but NEGATIVE balance? Well that's another story, is it? - how does that happen? - the brokers ought to be punished, if that's the case, not the other 96% of clients who are honourable}

Figures are flown around that say 80% of traders lose money. I'd go further and say that 100% of traders lose money. Hands up who has not lost money?

I'm confused. I think they need someone with their head screwed on to get the facts right. That would be a good start.
  • #60
  • Jan 18, 2020 10:08am Jan 18, 2020 10:08am
Quoting HudithePfupf
There is no such thing as a "skilled" trader in retail forex. No trader using leverage above 5 can be considered as "skilled". Since 99% of all retail traders are addicted gamblers, regulation should adress the behaviour of this group. If you belong to extremly rare species of "skilled" traders you welcome these regulations. Retail forex is a negative sum game for losers.
Ladies and gentlemen, I present to you a loser that couldn't make it work. Clueless individual with no experience in the game.
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