Very new here so I’d like to introduce myself and ask a few questions if I may.
First of all I am from Australia. I run my own trucking business but also have been involved in forex trading for a number of years now.
Although I’ve been trading for some time, only as recently as earlier this year a mentor of mine introduced me to concepts I did not know at the time existed, two of which were the ability to write code/EA’s in Meta-trader and other platforms, and social trading. I started to do my own research on this whole area and was blown away at the sheer size of the markets for these things.
At the same time he also introduced me to Darwinex because as a result of his own research and efforts, Darwinex seemed to be the only company that ticked certain boxes, one of which is the protection of IP (the traders strategy).
I will confess, as I live in Australia I did my own research to find out if there was something similar closer to home simply because given a choice I’d rather keep my money in my own country. However what I found was that all the social trading sites/platforms etc that exist that would allow me to use a local broker, do not in fact protect the traders strategies (with the exception of myfxbook which I will come to later).
I notice for instance, all of them show all the open and closed positions, the asset, the direction, and the opening and closing times and prices of those positions. I found this quite strange that they also do not provide an option to hide this data.
Now whilst I am relatively new to MT4 and MQL4 and therefore no expert at all, I did do a hard crash course on it over a few months just to get familiar with the concept of it and this was more than enough to demonstrate to me that computer programs can easily take a traders history and determine with reasonable accuracy what that system is going to do next. I don’t actually know whether these companies deliberately set it up this way so that they themselves can use their own developers to scan strategies or not, but anyway.
I was watching the webinar this morning and when it was on the section demonstrating a Darwins Assets & Timeframes, particularly the section regarding the Max. Positive/negative excursion per trade, including open trades and how by hovering your mouse over any data it will show you the asset and the time the trade was opened and also how far it went as a % both positive and negative and where it was closed. At this time the host did also mention that by protecting/hiding this information it might scare some investors off.
I’m very curious as to what it is an investor may be actually looking for in this information that a) if it was not provided they would simply pass on the Darwin, or b) if it was provided, what information therein would scare off the investor?
Which brings me back to myfxbook, which as part of its screening process does not allow two specific trading styles, martingale and grid trading. So I googled these to find out what they were. Martingale was easy to determine, like pyramiding, or opening more volume the further out of the money you go - so essentially a very risky gambling system, so I was not surprised that this system would scare many investors (including myself). But when it came to determining what a grid system was this was not easy, so I asked myfxbook directly and their answer was simply - “Grid is the addition of trades to an existing position.”
I found this answer bemusing and so have asked for clarification (but have not had a response yet). I emailed the following response:
Thanks for the explanation, and yes I do have a few more questions.
I do not understand your definition of a Grid system wherein you stated “Grid is the addition of trades to an existing position.”
Does this mean that no trader can have any more than one position open at any given time? Or is it more complex than this?
For instance, if I was to allocate 3% of my capital (which for argument sake might mean I can open 3 micro-lots) toward a trade, say long the EURUSD but I chose to open 1 micro-lot and then another micro-lot 24 hours later and then the third micro-lot 48 hours later, would this still be classed as a grid system?
Another example, if I was long the EURUSD and decided to open a short as a hedge, is this also classed as a grid system?
Third, what if instead of using a short EURUSD as a hedge I went short the EURJPY as a hedge, is this also classed as a grid system?
Fourth, what if I had opened a long EURUSD with 3 micro-lots but closed out 1 micro-lot 24 hours later, another 48 hours later, and the third sometime later, is this a grid system?
Fifth, what if i was long the EURUSD and decided to open a completely uncorrelated pair such as the AUPJPY, is this also classed as a grid system?
Finally, if the answer to any or all of the above is ‘yes’ may I ask what it is myfxbook has against these methods of trading and why you don’t allow them?
If any of the answers are no, can you please explain what is the exact criteria used?
So as an outsider looking in, I was hoping any experienced traders/investors or the team at Darwinex might clear this up for me. I can see why investors would be scared off by martingale systems, but not grid systems, or at least not any of the styles mentioned above in my response to myfxbook (which up until this point I must assume to mean are grid systems).
Thanks for any help and am excited to be here.