Don’t trust Stats or pip count!
I am sure you have seen a lot of stats out there with performances above 10.000%. How is this even possible, well it is if you are an expert in maths and are aware of how brokers and third party providers formulas do calculate the returns. The key part is time, deposits and withdrawals. Any of these 3 variables make a HUGE different in results. Let’s use my cent account as a real example. I started this cent account for my live tests because it allows me to trade 0.01lots on microcharts (microcharts -> lots are 100times smaller) with a 100$ account. Here I can open a 0.01lot and risking only 0.001$ per pip. This is great to train and test scalability and money management! The results would be equivalent in percentage as trading a 10.000$ account on the standard charts, where 0.01lots make 0.10$ per pip. In March 2016 I started trading with the 30$ bonus for my livetesting and then in October I deposited about 166$ and got an extra 83$ credited as trading bonus, non withdrawable. Since then I have been rebating the credits and have added extra non withdrawable credits with my traded volume.
However, last 9th of May I started a new project aiming higher risk with a daily target of 0.40–0.50% returns every day. It has been going great and so far at the top target hitting an average of 0.50% daily returns.
Stats are only considering this initial date as a start, ignoring all the previous ups and downs from previous months livetests. Here you can see the total credits and deposits of the account since I registered until today.
I have linked the account to my fxblue, an independent third party statistic provider and as you will see the stats can get pretty crazy.
9185% return would make me look like a gazillionaire for many of you if I would hide the real profits and balance.
Fact is I did not make over 80$ profits on this account, but in this time span a few rebate bonuses were added at several points of time with a total of 14.34$.
The third party provider mixes credits with deposits and total balance with withdrawable equity. And because at some point 2$ were added, then later another 3 or 4$, ignoring the past data and total amounts, it only checks the profits made, initial equity, ending equity between each change in the account and at the end you can have such crazy results while only making less then 100$.
Now another example of how many attract people to fall for their scams, making 100pips or more per day. Let me show you that pip count is a complete nonsense. If a position 0.05lot is 50pips in green and is closed it made 50positive pips and 25$ profit. Now a position 0.01lot is 200pips in red and is closed it made 200negative pips and a 20$ loss. At the end you made 5$ net positive profits and made a 150pip net negative count.
Experienced traders/investors re balance their portfolio and let me show you an account that I am running for a challenge that I started in May between a few traders in demo and it has closed every month with a negative pip count and yet the account made every month positive results and is now near 7% net return. The pip count does not consider the change in lotsize, nor if you are re balancing positively.
Please do your own due diligence research before investing any money, do not let your greed cloud your judgment!
Most scammers use hedging accounts to provide constant monthly returns but never show the full complete track record, many just copy paste and photo shop track records from the web. Check for the validity of the track records, confirm he is the owner, contact the broker! Every broker has a support email. Don’t procrastinate and don’t go for the easy way, it is an illusion. Investing requires less work as trading, but it needs some work to avoid unpleasant surprises. A phone call, an email, some research is everything it needs.
Best of luck to you all.
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