Earn2Trade Founder Charged With Fraud

trade2020 said:
Yep - time to just give it up traderjo
Its very obvious to objective clear thinking individuals what these firms do and why they do it and that they are not changing their model.... no matter what you say to them on this board even if hundreds of other traders agree with you on this board. The only way they will ever possibly change their model is if the are under monetary pressure to do so because another company introduces a new tryout and funding program for aspiring traders that is directly eating into a substantial enough chunk of their market share and they see their cash flow seriously eroding as people flock to something that is clearly better.

Right now that better deal doesn't really exist---the reason why it doesn't exist might be because the only way to make decent money in the tryout and funding traders business is to unfortunately just do what the existing firms do now and the same math that they do as well----- so in that sense if you want to start a new tryout company and funding company for traders - if you want to make a profit you may just have to pretty much replicate what everyone else is doing if you want to make any money at it and then try to gain an edge with better marketing, promoting and service and perhaps giving away at no additional charge things that some of the other firms charge for like educational materials, training and other stuff

You have to do enough research to see if there is a substantially better way to offer tryouts and funding to Traders that offers a better value to Traders in the tryout phase and also provide a mathematically superior funding program for the Trader to make a better living on if they pass and are funded
--- all while:
a) creating a tryout that is still pretty hard to pass so you are getting people that appear to have some trade ability
b) running a scaleable, sustainable profitable business model

As far as technology and data Most of these firms use Rithmic, some use Tradestation and some use Tradovate.

Traderjo - perhaps your time would be better spent coming up with a much better solution that offers the trader more value than what Topstep, Earn2Trade, FTMO or any of the other companies in this business currently offer.

contact Rithmic Data
contact TradovateTechnologies https://www.tradovatetechnologies.com/api
contact Tradestation

All the technology to run this type of company is out there already - it really comes down to coming out with a better solution that customers (traders) like much better than what FTMO, Topstep and E2T and others offer, having decent funding and a good business plan to grow the company to consistent profitability, and doing some very good marketing and PR

So traderjo (or any other people out there that believe these companies could and should offer something better) spend some time doing some meaningful research to put your own deal together that is better than what the existing companies offer and grab your own share of the market
More...

Overnight thanks for a thoughtful response ... only reason I started it again was what irked me is the deceptive marketing and when a newcomer starts posting something like shall I go for this then I felt ( like others) to show the pitfalls of this model.
any way... I am going to let it go to hell with it let others realize it one day or the regulators!
By the way I did do some research on a "better model"
One that is NOT based on selling education or tests so no stigma
Model 1) First loss funding ( which will require a very good Risk management tool and it will be like providing Leverage upon leverage which may not be liked by regulators , so for example One can FUND a trader with just $500 per ES for day trading and he/she gets an exposure of $150,000!
Model 2) No first loss pure 100% risk by funder...that requires not just 24/7 risk management but also knowledge of trading for the funder
Model3) was what if instead of First loss the trader pays for a Protective PUT but many straight futures traders don;t like the options and the cost
This idea is not new I have seen structured product in Equity space where a investor can
- borrow 100% with no background check required
- Non recourse loan no margin call even if shares held go down to zero
as long as
1) investor pays for a protective ATM PUT/Call ( depending upon Long or short stock)
2) investor pays for interest on loan for the period of loan = expiry of protective option
The investor keeps beneficial ownership of the stock position + can do things like sell covered calls etc on the underlying holding
The funder / Bank has nothing to loose
 
I think it’s what you said destriero
“it's a pool and meeting intraday risk, meaning that nobody is truly funded to the level you state”

if they are instead putting people on a sim and the trades aren’t even hitting the tape then that sounds like a big problem

destriero said:
Is the prop firm an NFA member? Does your prop firm have any reporting requirements? No? Either it's a pool and meeting intraday risk, meaning that nobody is truly funded to the level you state, or you're putting these guys on sim. Another reason to avoid Dorman and Ironbeam.
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i found it on a copy trade website so one can say they are sort of competition to pay for test business.. but any way why is this so important?
I am over this debate... not interested any more. it is a free world.. let people do whatever they want to risk...my aim was to simply explore a better model.. but people started personal attacks so enough for me to hell with it
good by
 
Knowing that 95% of particular are losers.
95% will fail.
+ 20% of the 95% fail will retry by paying for the test.
80% of the 5% who succeed will fail in the next 2 months.
The 0.5% risk managers who are successful over time earn very little.

At Wallstreet there is no free meal.
The business is very profitable.

Recruit professional and seasoned traders. Entrusted them with funds.
Normally it's more profitable than says Johny the baker of funds, right?
 
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trader221 said:
Knowing that 95% of particular are losers.
95% will fail.
+ 20% of the 95% fail will retry by paying for the test.
80% of the 5% who succeed will fail in the next 2 months.
The 0.5% risk managers who are successful over time earn very little.

At Wallstreet there is no free meal.
The business is very profitable.

Recruit professional and seasoned traders. Entrusted them with funds.
Normally it's more profitable than says Johny the baker of funds, right?
More...
NO comments just an example of true prop....https://www.eclipsetrading.com/
 
In general, there is no doubt that only a small percentage of traders make money. This is no different in our business model then it is on the market. We are filtering through to find the great traders, and making money on the examination fees. The company funds the successful candidates, and there are a lot of them and some of them are indeed very profitable. 500+ candidates were funded in the last six months alone. This is a number we are very proud of and hope will grow more with time.

The vast majority of businesses fail. Only one applicant of the many will get a job they apply for. The vast majority of students will not get into Harvard, and In sport only one team is the champion. Businesses pay money even if and when they fail. People work for their jobs even if they don't get them. Students study for their universities even if they don't get in. People practice and train for sports and they still lose.

The question is not whether these industries (business, education and sport) exist. It's whether or not they represent a fair opportunity. We strongly believe that we provide a fair opportunity for any candidate to become a professional trader.
 
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