This comes from the original post:
https://www.elitetrader.com/et/thre...ading-the-open-market-with-2m-candles.324677/
I'm trying to separate this to avoid opinions, and to see if we can have real proofs, because how I've said there, Oliver Velez is using a lot of influencers to promote the course, and people will believe more in their words than some anonymous comment.
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[IF YOU DON'T KNOW ABOUT OLIVER VELEZ]
He is promoting a trading course, valued more than $1000. In that course he will teach you (even if you know nothing about the market) how to be profitable trading during open market (and only the first hour). His strategy is very simple (but not "easy" in his words), just scan some markets, use 2m candles, wait the first one, and long/short the best opportunity (using some moving averages and size of the candles).
After the course you will train the strategy with virtual money, during months, if you are profitable, then he will give you a reall account with $50K of "buying power", he will receive 50% of the earnings, so he is claiming you are 0 risk, because you are trading with his money, and you will use an expensive professional software etc.
He shows many live videos where he is earning thousands in just half hour. And many youtubers/instagrammers/bloggers are doing the same.
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[THE BEST PROOF]
I think the best proof is to backtest his strategy, I did it, and it has some profit, but no even close to the profit he is showing (which is 2 or 3% per month). But is not so easy to backtest 2m candles (I need a lot of tick data and is not free). And also Oliver and their promoters says is not possible to backtest, because it depends too much on the "intuition".
[HOW DOES THE SCAM?]
The problem is:
If he is giving you the $50K and he and his followers and influencers are showing live trading with good profit. Where is the scam?
I cannot prove this (that's the main purpose of this post) but I think this is how it works:
1. You pay $1000 for the course
2. You start trading with the $50K, but in virtual money (3 or 6 months minimum)
3. If you are profitable ($1000 in profit every month in average, and never loss more than $300 per day and $600 a week, and you made more than 200 trades) then you get access to the real account (with real $50K).
4. He will receive 50% of your earnings (since is "his" money)
5. I think if you start to loose he can close your trading account or you will be back to the virtual money.
The SCAM could be on the $50K, he is never giving you real $50K from his money, he is just using the $1000 you paid for the course with 50X leverage. So it's YOUR money, so he is never putting at risk his money, and this is how he is making money:
- If you don't pass the virtual phase, then he earns $1000 from the course (and you will feel is your fault, because you are not a good trader, not that his strategy is just random)
- If you have access to the real account, then he is using your $1000 to give you $50K in buying power, and he is earning 50% of all your earnings doing nothing and risking nothing.
- If you loose "too much" in real account, he will close it before he needs to start to pay your loses
So it does not matter what he is teaching, he can teach you that after every green bar must be another green bar, because some times it's true, when it's true, he makes 50% of that profit, and when it's false it's your $1000 what is in risk, not his $50K.
[INDIRECT/LOGICAL PROOFS]
- He is talking all the time about "elephant bars" (institutional movements: big candles with big volume), but he is also saying he has thousands of traders around the world, if all of them are trading with $50K and in 2m candles, then "he is the elephant!", just some maths:
EBAY:
market price: $35,
volume in 2m candles (during open market): 7K = $245K
So with only 10 traders moving $25K (he teaches to open positions with $25K and then use the other $25K to add extra positions) you have the full 2 minutes candle!
- If he really gives $50K to thousands of traders, then he should have near $300M, from his videos he does not look like a guy with $300M but also I couldn't find any information of him in Forbes or any proof of this wealthy.
- If he is so good trading, why is he giving his secret to everybody? and if he has the $50K why is he giving that money to you instead of trading with that money himself?
He says because he can't see all the markets at the same time, so he needs "help" that's why he is training people.
- If his reason to train people is to get help:
Why is not training people in private, people with knowledge, not people who knows nothing about the market like now?
Or why is not offering the course for free? in that way he will get much more help! (he will filter the good traders with the simulator first anyway)
Or why he does not invest in a really good bot? his strategy is not so hard, could be automated somehow (he says is not possible, only human intuition can make it profitable).
- The limit for your loses is $300 per day and $600 per week. Why if you have $50K he allows you only 0.5% of risk? this is really low and for $50K, but it fits perfectly with your $1000 (x50 leverage), he will allow you to loose only $1000 because that's the real money behind the scenes (not $50K) and even more, it's your $1000! (value of his course)
This is my analysis, I hope it helps to someone to open their eyes, but would be nice if someone can provide more information or real proofs about Oliver Velez scam.
https://www.elitetrader.com/et/thre...ading-the-open-market-with-2m-candles.324677/
I'm trying to separate this to avoid opinions, and to see if we can have real proofs, because how I've said there, Oliver Velez is using a lot of influencers to promote the course, and people will believe more in their words than some anonymous comment.
-----------------------------------------------
[IF YOU DON'T KNOW ABOUT OLIVER VELEZ]
He is promoting a trading course, valued more than $1000. In that course he will teach you (even if you know nothing about the market) how to be profitable trading during open market (and only the first hour). His strategy is very simple (but not "easy" in his words), just scan some markets, use 2m candles, wait the first one, and long/short the best opportunity (using some moving averages and size of the candles).
After the course you will train the strategy with virtual money, during months, if you are profitable, then he will give you a reall account with $50K of "buying power", he will receive 50% of the earnings, so he is claiming you are 0 risk, because you are trading with his money, and you will use an expensive professional software etc.
He shows many live videos where he is earning thousands in just half hour. And many youtubers/instagrammers/bloggers are doing the same.
-----------------------------------------------
[THE BEST PROOF]
I think the best proof is to backtest his strategy, I did it, and it has some profit, but no even close to the profit he is showing (which is 2 or 3% per month). But is not so easy to backtest 2m candles (I need a lot of tick data and is not free). And also Oliver and their promoters says is not possible to backtest, because it depends too much on the "intuition".
[HOW DOES THE SCAM?]
The problem is:
If he is giving you the $50K and he and his followers and influencers are showing live trading with good profit. Where is the scam?
I cannot prove this (that's the main purpose of this post) but I think this is how it works:
1. You pay $1000 for the course
2. You start trading with the $50K, but in virtual money (3 or 6 months minimum)
3. If you are profitable ($1000 in profit every month in average, and never loss more than $300 per day and $600 a week, and you made more than 200 trades) then you get access to the real account (with real $50K).
4. He will receive 50% of your earnings (since is "his" money)
5. I think if you start to loose he can close your trading account or you will be back to the virtual money.
The SCAM could be on the $50K, he is never giving you real $50K from his money, he is just using the $1000 you paid for the course with 50X leverage. So it's YOUR money, so he is never putting at risk his money, and this is how he is making money:
- If you don't pass the virtual phase, then he earns $1000 from the course (and you will feel is your fault, because you are not a good trader, not that his strategy is just random)
- If you have access to the real account, then he is using your $1000 to give you $50K in buying power, and he is earning 50% of all your earnings doing nothing and risking nothing.
- If you loose "too much" in real account, he will close it before he needs to start to pay your loses
So it does not matter what he is teaching, he can teach you that after every green bar must be another green bar, because some times it's true, when it's true, he makes 50% of that profit, and when it's false it's your $1000 what is in risk, not his $50K.
[INDIRECT/LOGICAL PROOFS]
- He is talking all the time about "elephant bars" (institutional movements: big candles with big volume), but he is also saying he has thousands of traders around the world, if all of them are trading with $50K and in 2m candles, then "he is the elephant!", just some maths:
EBAY:
market price: $35,
volume in 2m candles (during open market): 7K = $245K
So with only 10 traders moving $25K (he teaches to open positions with $25K and then use the other $25K to add extra positions) you have the full 2 minutes candle!
- If he really gives $50K to thousands of traders, then he should have near $300M, from his videos he does not look like a guy with $300M but also I couldn't find any information of him in Forbes or any proof of this wealthy.
- If he is so good trading, why is he giving his secret to everybody? and if he has the $50K why is he giving that money to you instead of trading with that money himself?
He says because he can't see all the markets at the same time, so he needs "help" that's why he is training people.
- If his reason to train people is to get help:
Why is not training people in private, people with knowledge, not people who knows nothing about the market like now?
Or why is not offering the course for free? in that way he will get much more help! (he will filter the good traders with the simulator first anyway)
Or why he does not invest in a really good bot? his strategy is not so hard, could be automated somehow (he says is not possible, only human intuition can make it profitable).
- The limit for your loses is $300 per day and $600 per week. Why if you have $50K he allows you only 0.5% of risk? this is really low and for $50K, but it fits perfectly with your $1000 (x50 leverage), he will allow you to loose only $1000 because that's the real money behind the scenes (not $50K) and even more, it's your $1000! (value of his course)
This is my analysis, I hope it helps to someone to open their eyes, but would be nice if someone can provide more information or real proofs about Oliver Velez scam.
