Earn2Trade Founder Charged With Fraud

FlashGordon said:
No, if you lose money on the sim, Earn2 Trade does not "get" (gain) that loss. It's a third-party independent simulator (like a game).
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Yes, it's exactly how I said in the case you're winning. In the case you're losing, you lose the entry fee you've paid ("exam" fees and resets) to enter their bucket shop casino.

FlashGordon said:
Earn2Trade is at the mercy of the real market, as they have no control on spread, pricing, or movement.
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How would you know? There are parameters to be set for every trading simulator.

FlashGordon said:
One last comment; If you can't pass the sim at some point, you will never make money trading on your own brokerage account either, with any of the big brokerages out there.
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I already explained to you that even Sharpe 0.5 makes money but doesn't pass their rules.

FlashGordon said:
P.S. Google searches will lead you to your answer. In short; It's the same, but possibly without the effect of market depth.
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Okay, so I wanted to know, which one of the three (stated) possible alternatives it is. Your answer "It's the same," doesn't make any sense.
 
longshort said:
Then the prop firm must be taking the other side against their "traders" because money doesn't come from the market in "LiveSim". If "traders" win, Helios must assume the loss, and that's indeed the other side.

What's the logic of limit order fills in the "LiveSim"? Does it 1. fill on touch, or 2. fill when traded through? Does it 3. something in between and simulate a queue position and if so, how?
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The logic of limit orders is the same as it is with Earn2Trade's Gauntlet. I have to make it clear though, that the orders of course use live data, but go to Rithmic's paper trading server. Their simulator environment then handles the trades. It seems to me that you are under the impression that we have any control over that, which neither Helios, nor Earn2Trade does. Whatever parameters you say are possible, they may be, but we have no control over it. If Rithmic decides to change something on their sim environment, any user on Rithmic Paper Trading will see those changes. Rithmic offers you the chance to try all that here: https://www.rithmic.com/demo.html#sign-up
 
Earn2Trade said:
The logic of limit orders is the same as it is with Earn2Trade's Gauntlet. I have to make it clear though, that the orders of course use live data, but go to Rithmic's paper trading server. Their simulator environment then handles the trades. It seems to me that you are under the impression that we have any control over that, which neither Helios, nor Earn2Trade does. Whatever parameters you say are possible, they may be, but we have no control over it. If Rithmic decides to change something on their sim environment, any user on Rithmic Paper Trading will see those changes. Rithmic offers you the chance to try all that here: https://www.rithmic.com/demo.html#sign-up
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You should know how your simulator works and if it results in adverse selection of trades compared to the live market. If it does, the "LiveSim" thing is strikingly similar to Ryan Masten's binary options endeavor.

Deflecting responsibility to a third party doesn't work because no simulator was built to function as a mock market where "traders" lose their real money "exam"/reset fees if they lose, or win proportionally to their bucket shop trades (to the detriment of the "prop firm" who carries that as its loss).

Such a mock market isn't supposed to exist. Futures are standardized and regulated to be traded on exchange. One can't make OTC trades in futures or worse, operate a "LiveSim" bucket shop in futures.
 
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Source: https://help.earn2trade.com/en/arti...r-will-i-receive-upon-completing-the-gauntlet
losers.png


Another gem from their website. Spells it out that "funded" traders of E2T/Helios are net losers after passing their "examination", so much so that E2T/Helios is happy to be their counterparty for $5,000 in bucket shop gains.

The Gauntlet's true funding ranges from $1,000 to $2,500 in drawdown allowance, say $1,750 on average. To make sense of E2T/Helios taking the other side, it means at least 70% of the "funded" traders are kicked out in short order:

kicked out 69.57% * $1,750 = credited 30.43% * $5,000 * 80% profit split

70% is the bucket shop's break-even point; real failure rate of its "traders" is obviously higher.
 
Out of all the firms this is probably the one to steer clear of. The ladder scaling is designed to blow people out. The other firms will put protections in for the trader whereas this one won't. I would recommend to stay away
 
longshort said:
Source: https://help.earn2trade.com/en/arti...r-will-i-receive-upon-completing-the-gauntlet
View attachment 240472

Another gem from their website. Spells it out that "funded" traders of E2T/Helios are net losers after passing their "examination", so much so that E2T/Helios is happy to be their counterparty for $5,000 in bucket shop gains.

The Gauntlet's true funding ranges from $1,000 to $2,500 in drawdown allowance, say $1,750 on average. To make sense of E2T/Helios taking the other side, it means at least 70% of the "funded" traders are kicked out in short order:

kicked out 69.57% * $1,750 = credited 30.43% * $5,000 * 80% profit split

70% is the bucket shop's break-even point; real failure rate of its "traders" is obviously higher.
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This is not abnormal. It's in the fine print of other firms too.
 
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