Weekly summary and outlook for next week:
Unfortunately due to spending too much time at work, dealing with the sabotage, meeting with lawyers, the police and hedging on HF, I did not have the time this week to actively follow or commentate on the markets in great detail, this will change next week. Tomorrow, as we always have in the past, we will post an outlook for the week ahead followed by some trade ideas for CFD’s, Options and FX. Its really time for me to get back into the swing of things here.
Situation on HF:
This was a great week for us on HF, despite the market going against us, we were able to hedge our way out of danger by capitalizing on persistent risk aversion. Beginning on Tuesday with NET unrealized losses of over 27,000 USD, we have reduced this amount to exactly 3,190.62 USD as the time of writing this. Another positive was this was done while 20% of the account margin (just less than what the value of our green EURUSD position on Monday at a certain group) and that our JPY positions on HF were more toxic having started with buys at 120.84 compared to buys in the 118s and 117s, if memory serves me correctly on another network. In addition, leverage was 300X compared to 25X and 50X on another network and thus the danger was far more prevalent. In short (and as will be confirmed when you see the trading logs on HF), we would have been in a healthy position on another network as well had they allowed me to login and place hedges. Something they accidentally admitted to multiple copiers that they blocked. Please consider that as food for thought. I guess the profits they were making from taking the opposite positions to their users, which they do, were too tempting to forfeit should we have hedged our way back into healthy territory …….
Our goal for next week and the rest of the month is to get back to break even point, aim for a small profit and then close all positions. At this point the trading cycle will be over and those who wish to withdraw can without a penalty fee and those who wish to stay and continue may do so. I see this as a fair and just way to move forward (and not trap anyone against their will). Also at the start of the new cycle, the account will be password locked (as arranged by my HF account manager), so it really will be only for this community here.
Something I need your help with: (please do NOT be afraid, all info will be treated in confidence with no names mentioned)
Diary of events of the last week. I have been asked to make one for the authorities. I’m just putting a tiny version here to check in with you guys. Please let me know if you have anything to add, or if I missed something:
Monday: Circa 1pm, can not log in. I assumed it was a temp tech error (as has happened many times with these guys in the past), so I tell people on twitter to close the EURUSD (in green at the time) and sell GBPJPY or USDJPY to hedge. After trying many times contact is not returned.
Tuesday: Market really starts to fall. Still no access or contact (It was at this point we started actively hedging on HF). Some copiers report being emailed or contacted by phone to report risky behavior. Company claims I have full access and am lying. Copiers report my name vanishing from the site. I contact CySec.
Wednesday: Company messages copiers and claims they will close all positions in 48 hours for users protection, on the 3rd day not after I have been blocked and after 95% of the damage has been done. They claim that I am unreachable, despite all of you being able to reach me apparently, they can not…. Still no access. Company posts comment on my blog and twitter (saying login and submit a support ticket!) and that is all. Company also sends me an email in Arabic (4 lines long and not relevant to our problem), which I ignore due to damage already being done and not wanting to confront them without legal advice. I begin to seek legal advice as a result.
Thursday: Company accidentally admits they DID manually block my account from the trader, to protect copiers (what a slap in the face!). “He had full access to the account, we only blocked him from the trader”….
Friday: Company closes ALL positions (I am told since still can not log in). Company claims the new reason they closed positions was due to negative balance (another falsehood) and tell people they will get no compensation since this was not a technical error (told to me by a few copiers who showed correspondence). I talk to the police.
If I have missed something out, please add in the comments.
P.s. For those who believe that Market Makers do not take opposite positions to their clients (as some support members like to deny), I would like to direct you to an unrelated market makers site which states: “It’s important to note that the —— trading desk hedges its trades with our liquidity providers”. But I guess I’m next going to be accused of hiring anonymous or some other group of planting that right? Because they couldn’t possible admit their wrong doing. Its far more likely that an evil Arab threw away thousands of dollars of his own money just for no tangible benefit other than the sake hurting the people he cares about and communicates with daily…..