This is how I “hired” a professional trader to day trade for me without spending a single cent.
It was in the midst of yet another bear market in 2022, with recession looming in the background and me having just lost yet another 5 figures from unrealized profits that became losses, stablecoins that became unstable and eventually worthless and money in supposedly reliable exchanges that became unreliable almost overnight. (When will I learn?!) But those are stories for another day.
It was during this period that I chanced upon MerlionFX (XAU Merlion), a brokerage company. Looking at their website and platform, there was nothing that stood out as impressive to me. Like many other platforms, they have a component/feature called social trading or copy trading. This too was fairly common and not particularly impressive (to me at least).
However, couple these with a professional trader (actually a trading company), DymonFX, and things get a little interesting here. DymonFX is a trading company that executes trades on Forex pairs for their customers. I will do a deeper review of them as you read on. But most importantly at this point, what stood out to me was a historical record of consistently posting 6–9% profit every month. That’s a 72% to 108% profit in passive income annually.
That’s pretty impressive considering that it’s fully passive. If you’re a day trader or mega investor and can get these returns yourself, this likely isn’t for you. But for the average Joe like me, these figures are much more attractive than most of the investment plans out there. Albeit it’s not as attractive as the 100x or 500x gains that we’ve been conditioned/exposed to by scammy DeFi projects or Crypto Gurus promoting the next bitcoin. Thus I decided to give it a try and deposited USD$1000(minimum requirement) and increased it to USD$5000 after 1 week.
For Singaporeans, the top up process is pretty straightforward, you can use paynow, grabpay or credit cards. (Bonus tip: You can time your deposits with the grab power up challenge to get a big bonus in grab reward points!). There’s also the option of funding your account with USDT via the Tron (TRC-20) and Ethereum (ERC-20) network.
At this point, I find it important to add in a few disclaimers:
1) I am not a financial advisor, everything that you read in this article is of my own opinion. Please do your own research and due diligence or consult a professional advisor before investing.
2) Past results are not indicative of future results, forex trading and copy/social trading carries the risk of 100% loss. Only invest money you can afford to lose.
3) Figures may be taken from sources that are believed to be reliable (but may not necessarily have been independently verified)Basically you get the gist, please make responsible decisions for your money.
Continuing on, I had to verify these results myself. I was skeptical and immediately thought. Could this be a scam? Could the past results have been fabricated? Is this a scam just to get me to deposit my money and for me to eventually lose everything (again)?
Well, given past examples of seemingly legit brokers/exchanges that eventually faded to ashes. No one can ever fully vouch or verify for anything. Something may appear to be totally legitimate but there will always be risks from bad actors/human errors. Which is also why I will only ever put in a small amount of money that I am willing to risk and don’t need for any investment purpose. However, here are some of the research I’ve done and some reasons that gave me enough trust to at least give this a shot.
DymonFX is verified on myfxbook.
(https://www.myfxbook.com/members/DymonFX/dymonfx01/9610450)
Having already been copy trading from them for almost a month now, I also checked my daily transactions against their historical transactions to see if they tally (to determine if it was really them or they’re just using someone’s else profile). So far, everything checks out. Could this be fabricated? Extremely unlikely but not impossible, although it will take a great deal of effort to fake this. (Here’s a nifty guide on how to spot fake myfxbook profiles — https://www.forexpeacearmy.com/forex-books/205/fake-myfxbook-accounts-scam)
Here’s a screen grab of their past performance on myfxbook. I’m writing this on the 15th of December so December’s results is for only about half a month.
The max drawdown since April 2022 was 6.8%.
For those whom don’t know, drawdown refers to total decline in investment. For example, your starting capital in April was $1000 and ended with $1007.8 (0.78% growth). Somewhere in the middle of the month, your capital was at $932. Basically in the worst month of 2022, DymonFX lost $68 of your money but made it all back with an additional profit of $8 by the end of the month. In comparison, the S & P 500 has a max drawdown 33.79% for the past 5 years and an average of 14% drawdown yearly.
Risk of Ruin and Trading Methodology
Risk of ruin is estimated to be <0.01% across all loss sizes. Dymon FX uses a scalping strategy (5–15 minutes chart) that is executed by artificial intelligence to open trades and manually monitored by traders around the clock. The objective is not to make an enormous profit with each individual trade but rather to make a small profit over multiple trades. Looking at the past 100 trades, most trades were completed within 1–3 minutes and not held for long periods of time. Trades are also performed on major pairs only.
What’s in it for DymonFX?
At this point, you might think that everything sounds too good to be true and you wonder “Why would anyone do this?”. The answer is simple, through MerlionFX’s copy trading infrastructure, DymonFX stands to earn 40% of all profits that you gain from copying their trades. Do note that these are based on profits only and deducted from your trading account balance on the next trading day. After deducting the profit sharing percentage, accounts following DymonFX still posted an average of net profit of 4–6% monthly in 2022.
Referrals
To add on, you can also refer people in and increase your percentage share of 60% to a maximum of 82%! (My referral link — http://crm.merlionfx.com/signup/IB102511)
Do use the link to signup if you’re interested as you can only copy trade from DymonFX by registering with an “Introducing Broker’s” link.
Conclusion/ TL DR
Is this a scam? Everything looks and is working as it should right now. I don’t see any red flags yet and my opinion is no. Do verify yourself and make your own judgement call. Don’t trust, verify.
Is this for you? If your investments or trading are giving you more than 4% monthly, probably not. If you’re looking for some passive income that requires little effort, has a low drawdown and a generate a stable yield of 4% yield monthly, this is a great option in my opinion. (I personally check my MT4 app once every few days just to see progress but you can probably do it once a week or even monthly.)
How much should I put in? There is a minimum investment sum of USD$1000 and no maximum AFAIK. How much you want to put in is really up to you but I will recommend putting a level that you’re comfortable with. There are still risks of losing 100% and it has happened before (Coughs…FTX….cries). Diversifying is key to minimizing losses and never invest what you cannot afford to lose.
I hope this article has been helpful and do check back often! I’ll be posting updates on the progress of my account periodically. If you have any questions, feel free to drop me a private message anytime!
Full Disclosure: This is not a sponsored post but I do gain a better profit sharing model from referrals as well as some rebates on commissions. Here’s my referral link again for convenience sake.
My referral link — http://crm.merlionfx.com/signup/IB102511
