• Blog
  • Algorithms vs. Investment Roulette

Algorithms vs. Investment Roulette

Share article

Transcript of Anna Becker Speaking:

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

Okay. I want to tell you the story. After I sold my first company, Strategy Run, this was like a flagship story for Jeremy to tell because I was working for 12 years in 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 number five broker in the world.

Their CEO basically did some very shaky things. The company had 3000 employees in 13 countries, it was built in 1780, and so forth. It was working for so many years. It was a company that everybody believed in. It crashed in two days, so they closed it. And they bought us and we didn’t get any money from the sale. Then we were resold again. And just as Steve Jobs, I was fired from this new company. I was crushed for a little bit, 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 to go 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 they 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. I remember this guy, Mr. Bolinger, when I was in Strategy Run and I was at one of the conferences, he actually came to me and I was sure that he’s dead, because it’s like such a name, Bolinger. If you are in the modeling of indicators, you think it’s like something that it’s a name of the folk song. It doesn’t exist. And yeah, exactly. This is like it’s a standard deviation. And then he comes to me and it’s written here Bolinger, 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. Bolinger.

It was no Instagram. Right. But I was like, yes. So we built 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 producing the profits. So my plan was to improve the system and to move forward. But my partner, 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 looked 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 the system. I want to see what’s inside. Do you know how much it costs 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 Run or Endotech or it’s my property. $5,000. When I saw what was 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 look at this? Is it nice?

It’s perfect. It looks like what you dream about. This is a 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. This is the percentage that we dream about, right? It looks so perfect. I need to be in it. The only thing I’m asking myself is, why are there so few people in it? So what is the answer? And I really want to share with you the answer, because it will help you to understand why 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 different 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, it’s 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 do they keep it? They keep it for a very, very, very short time. So what is the probability for the single event? Almost a hundred. That’s why they have almost a hundred percent right. Right.

They get a hundred percent times the small, small, small, small, small win. Right. And it looks perfect. You don’t need to be modeling. You 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? They’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 are reversed but heavier. This is the main idea that they have. They are not trying to make money from you. Try to understand this. They are scamming you. They are knowledgeably scamming you for results. When they reverse, they increase the margin scale. They increase the number of lots. They’re trading, but for how many lots?

For the same size that 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 this green one means is how much money you put into each trade. So do you see visually how much bigger this one is than this one? 10 times, right? Not twice, not three, 10 times. 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. You know what happens? A hundred percent of the systems eventually will lose all the money for you.

Hundred percent. That’s why nobody’s in there because 99% of other systems already lose their money. You lose a hundred percent of your money eventually every time. Now 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 extra 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 just his misconception, but he has… if you look it 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 the different terms below and 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 a hundred percent. So you ask anyone that knows trading and he will tell you, the system has a hundred 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. And we are 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.

Share article
Endotech

Endotech