On the home screen of this website, we are legally required to have listed the RISK WARNING. This is a requirement in the registration and licensing process so we can operate as a brokerage. However, unlike other brokerages, we don't want to profit off of other people losing their money. We only want to profit while others are making money; because most that trade lose money, we do the trading for them with our brokerage.
There is a big difference between investing and trading using only my funds vs trading with other people's funds. I'm ok risking my own money, but not others. Because of this we have implemented multiple redundancies and risk parameters to make sure you don't lose your hard-earned money.
Below you will see the various redundancies and risk parameters we have set up to deliver high returns with minimal risk:
- The strategy that we use to determine in which direction to open a trade, and when, is based on multiple time factors that work together to best predict which direction the market will continue.
- I feel the best approach for closing positions is what's called scalping. This allows us to close out positions as soon as we see a slight profit without taking the chance for the market to turn a negative direction again.
- If the market goes in a negative position, we take a "doubling down approach". This allows the market to continue to go in a negative direction while we open more trades. When the market turns around it will only have to go a small amount in the profitable direction to collectively close out at a profit.
- Unlike most hedge funds, we truly do "hedge" our bets. If strategy number 1 finds a trend to open a position in one direction and the market turns negative, it will tell us to open another position, but in the new profitable direction.
This is important, because as our first position goes farther negative, position 2 will become more profitable.
- These next three factors have no real name as I've never seen it done before. Another approach we take to protect the fund is chipping away at the oldest negative positions while our balance of the account continues to grow, resulting in an overall collective profit.
- This other factor also has no prior name to my knowledge, but I've been referring to it as the drawdown feature. This feature works with strategy 3. Doubling down on the negative trade allows the collective group of trade(s) to close out at a lower price than you initially opened the first trade at, however with the drawdown feature, if enough positions are opened it will close out the oldest negative trade and the newest profitable trade(s) collectively profitable without having to wait for the market to make as big of a turnaround in order to close out all of the open positions at a collective profit.
- If enough positions are opened and the overall margin level gets below a set marker, it will close out the oldest negative position in an effort to protect the fund balance and allow us to open more trades in the profitable direction.
- If the equity ever reaches a level of -20%, we will close ALL trades immediately. This shows at all times your money will never risk more then 20% of the total investment amount.
- If you haven't already read through the GRAND PLAN, I invite you to do so, but as phase 1 profits above a certain ROI point each week the overflow profits are set aside for phase 2. In the event phase 1 was to hit the 8th risk parameter that I just mentioned, past profits from phase 1 will be taken from phase 2, to replenish the phase 1 fund balance.
I hope the above redundancies and risk parameters will help paint a clear picture of what sets us apart and how we are able to produce the returns we can, while delivering the lowest level of risk possible.