Algorithms vs Investment Roulette

Share article

Video Transcript:

Okay, so here is a fun story. So we see that it’s possible, right? And not only them, but I will also show you some other funds that did it, and they’re doing it. They don’t have this impressive track record, but there are hedge funds, they’re doing it year after year, maybe for 10 years, maybe for smaller sums, but they’re doing it, okay. So I will tell you the story.

After I sold my first company, Strategy Runner, and this was like a flagship story for Jeremy to tell because I was working for 12 years on my company and we did this amazing technology and we sold it. After 12 years of working in the company and selling it and being happy with it, to see the company that bought it going into bankruptcy within two weeks and going completely down. The company called MF Global was the number five broker in the world. And their CEO basically did some very shaky things. The company with 3,000 employees, in 13 countries, was built in 1-7-8-0, 1780. So for it was working for so many years, it was a company that everybody believed in. It got crashed. In two days, they closed it. And they bought us and we didn’t get any money from the sale. And then we were resold again.

And as a Steve Jobs, I was fired from this new company. So I was little bit crushed, of course. Not little bit, I was crushed. But I decided that it’s an opportunity for me to try something new, to try some other things. So I found a partner in Singapore. It’s easy, from Israel to Singapore, in just 14 hours. So I found a partner in Singapore and I started to work with him. And his idea was to build a forex system that makes money. So the good part was that he had lots of money from his clients and the good part for me was that I had complete freedom. So we built a system, and the way I built it, because I saw so many systems in my previous company, I saw literally thousands of systems in my previous company, I knew what should work.

And I remember this guy, Mr. Bollinger, when I was in Strategy Runner and I was at one of the conferences that he actually came to me and I was sure that he’s dead because it’s like such a name, Bollinger. If you are in the modeling of indicators, you think it’s like something that is a name of a folk song. It doesn’t exist. And yeah, exactly. This is a standard deviation, like it’s… And then he comes to me and it’s written here Bollinger, and he starts to talk to me. “Anna, you are the first company that made it automated.” And I’m like, I’m telling everybody that I met Mr. Bollinger. It was no Instagram, right, but I was like, “Yes, yes, yes, yes, yes.”

So we build this first system and we started to make money, like 26% monthly every month on tens of millions of dollars. It was amazing. And then I remember one day, six of six of 2013, where it stopped, stopped producing the profits. So my plan was to improve the system and to move forward, right. But my partner, he felt very anxious about it because he needed to perform and produce. So he said, “This way, your system, is not working. Let’s go and get some other systems.” So I went and I look at all the systems in the world to find what systems are working. And I found this website. Probably you know this, right. Myfxbook.

And I clicked on the first system and I saw this. So I said, “Mr. Partner, please buy me this system. I want to see what’s inside.” Do you know how much it cost to buy the system? Nothing. $5,000. I said, “No way, nobody will sell your system for the source code.” I will never sell the source code of Strategy Runner or EndoTech or… It’s my property. $5,000. When I saw what’s inside, I understood why. So what’s inside the source code? Yes. And we bought every source code available on the market. So do you know? Do you look at this? Is it nice?

It’s perfect. It looks like what you dream about. This is the probability, this is the stability that we’re looking for, right? This is five years… or, sorry, nine years of track record. This is stability. These are percentages that we dream about, right? Like it looks so perfect. I need to be in it. The only thing I’m asking myself, why there are so little number of people are in it, right? So what is the answer? And I really want to share with you the answer, because it will help you to understand why the high opportunity modeling is so important. Why this triangular that I’m giving to you is such an important tool for you to check everything.

So I’ll tell you how this system works, what’s inside of it. Again, I really apologize if here there is a developer of the system or the system works a little bit differently because I was checking the systems in 2012. So maybe the world changed a little bit, right. But this is how it works. And that’s why, when Edward said that I know systems, is because I’ve seen thousands and thousands of different systems. So I understand what’s happening inside. So the way that it worked, I’ll show you on the chart.

What they do is, they see the trend. Sometimes randomly, sometimes with the trend, they make a buy signal, they buy, right. But for how long they keep it, they keep it for very short time. So what is the probability for a single event? Almost 100. That’s why they have almost 100 percent right, right. They get 100 percent times the small, small, small, small, small, small win, right. And it looks perfect. You don’t need to be modeling, don’t need to know how to model. You just can do it yourself. Just randomly get in, wait for a few seconds, get out. You’ll get your half percent.

Guess what? You’ll do it again. And again, and again and again. What happens next? Why? Because they got in, they waited, they waited, they waited, and then it didn’t work for them. So what do they do? They reverse the behavior. This is the main idea that they have. They are not trying to make money for you. Try to understand this. They are scamming you. They are knowledgeably scamming you for results. When they reverse, they increase Martingale. They increase the number of lots they’re trading, but for how many lots? For the same size, the green line is bigger than the small line, right? 10 times. So you put $1,000. In order for them to come back to the results, you will see…

Look at this chart. Here is how you can spot the system, the scam. You know what is this green one means, is how much money you put into each trade. So do you see visually how much bigger is this one than this one? 10 times, right. Not twice, not three, 10 times. Do you know what happened here? This time they were lucky and they got back. This time, they lost. This time, they were lucky, lucky, lucky. That time they lost. Do you know what happens? 100 percent of the systems eventually will lose all the money for you. 100 percent.

That’s why nobody’s in there because 99% of other systems already lose their money. You lose 100 percent of your money eventually every time. This is the fun part about this system, and I actually loved it, because this one works from 12. And you know why? Because it’s an extra scammy sort behind the system. They don’t trade every day. They trade once per month or they trade once per week. Why? To keep the solution going. If you look at their numbers… And again, I’m sorry if this guy has pure thoughts, at least it’s just his misconception, but he has… If you look down, you will see that in 10 years he made 500 trades. It means that he’s really spreading his story in order to keep it alive for so long.

So this should teach you that even if it looks good, right, if you look at different terms below at the numbers, you will see that this is a scam, but it looks so nice. So let’s look at our triangular. How can we see that this system is not high opportunity? The risk, we know that it’s 100 percent. So you ask anyone that knows trading and he will tell you the system has 100 percent. Return, yes, it’s high. It can be any number here. And the probability is 50% because you can either win or lose, right, at any year. Are we talking here about one-year probability? So your probability is 50%. So it’s exactly like roulette. So why go to financial markets? Go and put your money into roulette. It’s the exact triangular of the roulette.

Endotech crypto wallet