Updates

Update

N.B. The names of no organisation have been mentioned in this piece. This piece is published here purely for the curiosity of my reader base and they can interpret it any way they wish to.

It’s a harsh reality trip when you find out that in the scope of things sometimes you’re completely helpless. As many of you are aware it is now the fourth day in which I do not have access to my account. Some of you may know out of desperation and frustration, I decided to seek legal advice on the matter after being ignored for two days and only getting contacted after it was too late to rectify the situation. After an email asking me if I want to deposit more as the account close to being stopped and a comment here and on Twitter telling me to login and file a ticket (the issue being that I couldn’t login in the first place!), I decided that I wasn’t going to speak to anyone at a certain network until after seeking legal counsel. At this point there was nothing to be gained from speaking to them. The damage had already been done and for all I know they were going to try to trap me into saying something or agreeing to something that would free them from all responsibility.

So how did the meeting go?

In all honesty the gentleman I saw was very helpful but brutally honest. Firstly they spent some time asking me questions to determine whether I was wasting their time or whether we actually had something to discuss. When they were satisfied, we began to discuss the situation further. Firstly they told me that this is something they see very often with brokers that are regulated in a certain part of the world ( you know exactly which country I mean) which apparently means nothing and is easy to get. He also explained that due to the nature of these organisations, many of them are highly unethical and highly, for want of a better word, shady. In short they are regulated in name only and at the end of the day when their consumers are hurt, there is very little that consumers can do. He stated that in every single instance where he has seen someone try to get results, the brokers immediately deny any responsibility and try to pass the blame to the users. He also informed me that the brokers hire institutions that have expertise in how to drag things out and play with the wording of their conditions to make it look that they are not liable whatsoever and that any attempt to try to get compensation would not only be highly unsuccessful but would also be extremely expensive and take a long time. In short he pointed out the harsh reality that effectively what I did was give my capital to a semi-legitimate entity with shady business practices on the other side of the world and that in short I should never expect to see a penny back.

I was not discouraged by this because I felt that it cannot be that simply open and shut. So I explained more carefully to him what had happened. That in my opinion the people holding my money had a duty of care to me that I should be allowed to access and manage that money and that duty was breached and harm was caused by that breach. I also explained that even if we take the trading side and put it out of the picture, that these people were holding thousands of dollars of my money that they were not allowing me access to and in my opinion surely that that amounts to theft and there are laws against theft in the civilized world. He was intrigued so he asked me what I think happened and I explained to him, just what I’ve explained to all of you about what I think occurred. He suggested that while that is possible, it would be more likely that this issue was due to technical errors and that the company would not want to admit these technical errors. Instead it would be far easier for them to quite simply pass the blame onto myself and get off their mistake completely free. I can see how this could have happened given their history of errors but I remain convinced that this was targeted, especially following the behavior of this group afterwards.

Now, whether this was a malicious operation or whether it was quite simply technical error, it does not change the fact that the way it was handled was very poor. Ignoring me for two days and then pretending not to hear from me, and not contacting me yet having time to contact everyone else is unacceptable. Then pretending you are unable to reach me after trying and blatantly lying to people about it is also unacceptable. The people reading this blog are not foolish they know how easy I am to reach. They also know that I’m not in a position where I would not care about my money or throw it away. And unfortunately for you, they can also see who is consistent and who was changing their story.

You can go from pretending that there was no login issue to then pretending that you are checking it to then pretending that I have disappeared. Everyone is familiar from previous experiences with your ability to deny when the circumstances or problems arise. You did yourself no favors with your handling of it last time. In addition contacting people after their accounts have crashed and pretending that you have their interests at heart does not convince them. When we were in deep red in December, did you block them for their protection? I wouldn’t even be surprised if many people have received phone calls offering them credits if they deposit more as it is clear that quite frankly all you are interested in is getting these peoples deposits and keeping them for yourselves as long as possible. Oh and closing peoples copies without asking them, also not ethical. But you threw ethics out of the window days ago right? You maybe able to lock me out from posting on a certain site, but here the whole truth can come out. I have nothing to hide. You do.

A bit of a message to anyone who may have any doubts please consider the following:

Is this an excuse?

If you check at the time, I reported my lookout before the crash happened. This can also be confirmed by everyone on Twitter. This was not an excuse. I would not throw away a profitable trade and the ability to save my five figure balance quite simply for drama and attention. If you believe a lie like that, then you really should not be investing money online, the markets will devour you.

We had the exact same positions in the exact same danger in HF as well, if anything more so due to much higher leverage (300X). The difference being that because we were able to access HF, we were able to hedge as intended and over the course of the last few days everybody has seen the results of that.

In addition when I make mistakes, I face them. I have character. I’m not like a certain organisation that only selectively communicates and avoids mentioning its mistakes.

Could the situation have been avoided or changed if I had access?

Absolutely. As explained at the time of my lockout to Markofay and Michele ( both of whom can confirm what I am saying, in fact anyone who read the public comments on Twitter which is about 200+ people can confirm what I’m saying) the simple plan was to close the EURUSD sale which was in profit at the time and represented approximately one quarter of the account equity and use that to hedge by buying the Yen. This is the exact same strategy that we applied on HF in order to reduce our losses from the USDJPY buys (the troubled ones from 120 levels) over 12,000 USD to 2,364. i.e. It worked in limiting the damage. We now have only one usdjpy long from 115, which I have chosen to leave open as I feel we will see this level again sooner rather than later, and if not and things continue to fall, then we will continue to hedge.
N.B. While writing this a 250 spike happened, so thank god we didn’t over sell!

What is next?

I’m not giving up and will be spending the better part of my day off tomorrow talking to the police to see if there’s something that they can do to help. Ironically, when a certain called some of my colleagues with lies, they gave me some excellent witnesses. Note to your people: Never call someone who was recommended by a friend to lie about that friend, it tends to get you called on your BS. Following that there are a few people in Media City they have to write emails to as I’m pretty sure that they would love to hear all about this.

With regards to trading, I don’t even know what situation is a certain platform as many of you know I have not been able to login. I accepted the fact after two days of silence from them while the market tumbled that I will never see my balance there again. In short it has been stolen. Call it what you want, they have withheld my money from me. That is called theft. They are thieves in my book.

On HF we have significantly minimize the damage of our most dangerous exposure which was the yen, everyone’s leading choice during these times of risk aversion in the market. Were as we have minimized a long exposure, I don’t particularly wish to commit to another hedge at this point as I am not entirely confident on what we can expect from governor Yellen. However, I did take comfort in her statement yesterday that if market turmoil continues they may consider a slower path of rate increases. This to me clearly states that the central bank intends to continue increasing rates in contrast to the market which I feel is too quick to write of any rate hikes this year. I am 50:50 on whether anything will happen in March (if Feb posts a strong data for employment and shows inflation growing a little (helped by this weaker dollar), they might actually do it and certainly will fire again before the end of the year). I think the ECB will ease more in March and expect more cuts from the BOJ.

However after learning the hard way that complaints to a certain regulator get ignored, I feel we as a community need to decide whether we just break even on HF and then leave it for something regulated in a more (don’t want to sound offensive) legitimate country or whether we can trust them. It is something we should hold a vote on. I know I can not go through the drama of the last few days again. It sucks being victimized and slandered by a company, especially one that is playing dirty. Losing money at Saxo was hard on me but at least they didn’t cheat me. I lost it on my own fair and square from the market going against me. In this case, I was robbed. Plain and simple. Don’t let this happen to you guys. Don’t be fooled by them. Don’t be another one of their victims,

Mohammed

P.s. From tomorrow will start again with writing market outlooks.

29 Comments

  1. Hi Mo,
    as I said in the other update I’m one of the copiers that they have interrupted without asking anything, I agree totally with you and with your words
    .
    I should be free to decide on my own money and where to invest them, even if they don’t agree, they have taken this freedom from me, what I’m supposed to do, to invest only where they decide that it’s better for me?

    I surely will leave this platform, thanks as always for the update hoping that everything will be ok for you.

  2. Thanks Mo,

    this is highly unfortunate indeed, and I hope you are able to come to a resolution.

    PS!!!! I would like to inform you that about 2 days after you being locked out from your account I received an email from Etoro advising me to withdraw funds from you as you were a “high risk” trader. I saved a copy in case you legal team would like to have it.

    It’s strange that they were aware enough to know your account was at risk, yet not enough to restore access for you right ?

    Mo, do you have any idea why it is Etoro was upset with you? Howcome they encouraged you to make only 3% returns every month? Where is the incentive for them? Aren’t they making their money from trade mechanics non the less?

    1. This answer refers to another organisation and not the one you mentioned 🙂
      I believe its because people who make large sums withdraw them and they do not get to hold the deposits for long, which is what these people want. Deposits. I suspect this was the reason they entertained many grid traders for many years at the cost of users.
      It could have been personal or a technical error that they did not want to admit to. Regardless, their way of handling it is what spells their guilt in my opinion. Can you imagine a bank acting like this?

  3. I vote ‘stay on HF’, atleast until you break even. If you had fulltime access during that period, i think the platform can be trusted. Just my 2 cents

  4. Very sad day when ppl steal money from you and you can’t do much about it.

    Anyway, wrt HF, I have had zero technical issues so far and find their responses prompt and helpful. If it were up to me I would vote to stay on it, but also curious to see if anybody else has had a similar experience with them or not.

    Also, on a positive note, the fact that it doesn’t have a wall where trolls can reign supreme (and admin lose their independence) makes it already much better than that certain other place. I prefer to follow your comments on twitter anyway, it’s so much easier.

    Thx for the update and great work on the hedging earlier this morning.

  5. Dear Mohammed,

    Just an update from me as one of your copiers in that organization.

    After reading their email as below :
    “Dear Liszen,
    Following high risk behavior by OHEMGEE, and in order to protect your interest, we are obligated to close all open Copied Trades of OHEMGEE in your account.
    This is a final notification – we will close these positions in 48 hours to allow you time to manage your positions”

    I was compelled to write a ticket to them to complain that they should not interfere with my trading account, what’s more closing my copied trades WITHOUT MY CONSENT, then they replied me “we are still considering all alternatives, and we will notify all of OHEMGEE’s copiers before any action is taken.”, what a change of tone from “This is a final notification – we will close these positions in 48 hours to allow you to manage your positions” to “considering all alternatives..”. initially I was not sure why they suddenly changed their “final notification” to “considering all alternatives”, but after checking my copied account to you, I found out that all the other open trades were already closed due to stoploss reached…as I am writing this update, there is only one trade, i.e. the SELL EUR/USD trade still being kept opened, about 100pips from the stoploss set(1.1450)…sigh….it is indeed a painful sight. So I figured may be because they see there is no longer the need for them to close the trades on all your copiers, as those trades were already got stoploss, hence the change of tone to “considering all alternatives…” since those trades already closed by themselves due to stoploss reached.

    Another “interesting” point in their reply email to me was as below :
    “Regarding OHEMGEE’s claims, please be advised that we have been working through multiple channels to try and establish contact with OHEMGEE. These channels include phone, mobile push notifications, emails and more. He has never once been denied access to his account, despite his best efforts to convince the community otherwise. These claims are simply not true. He can login to his account whenever he so chooses – the only limitation we have placed on it so far is stopping him from opening new trades in order to protect his copiers’ funds. As far as managing his existing positions – that was never deprived of him, not even for a minute.”

    If it is true that they did “only” stop you from opening new trades, then you could not really salvage the account and your copiers’ accounts too IF you were allowed / being able to log into your account….because as you explained, you would close the EUR/USD trade in slight profit, then opening up some hedge positions to protect the existing trades…but if they already restricted you from opening a new trade (as mentioned in their email to me), then you would not be able to do much either. Sigh….. but in another words, they were indeed doing harm not just to your account but to all of your copiers’ accounts too, as you could not hedge those existing positions.

    That’s all from me… I could see from your updates in Twitter that you are doing great at HotForex, too bad all my investment money are locked into that platform already to extend the stoploss of my pain trades…otherwise I may try to figure out how to join you at HotForex, though from what I had read, it is a totally different platform with different way of trading.

    Take care and all the best in your trading in HotForex! And I really appreciate that you keep updating us about the progress of your dealings with that organization.

    Regards,
    Liszen

    1. So now they claim that even if i could log in (which i couldnt), I would have been unable to open new trades and hedge? I wish they would get their story straight, I knew keeping up the lies would make them nervous but now to admit they purposely sabotage any opportunity we had to hedge… Thats just admitting their guilt….

      1. Dear Mohammed,

        If my English proficiency is good enough to understand their email to me, then I guess that was what they meant, they did restrict you from opening new trades (the “only limitation” as they claimed)….but that would be the lethal limitation(in no way it would be able to protect your copiers’ funds as they claimed) to your account and all your copiers’ accounts too as you would not be able to open hedge positions too, even if you could log in…

        Thus I have just wrote another reply email to them and pointing out this fact to them….and asked them whether they did somehow erroneous block you from logging into your account or not, when they imposed that restriction of opening new trades on your account.

        Regards,
        Liszen

        1. Their response will be to change the story as well. They will realise what they said amounts to sabotage and shows their guilt and change it. Please screen shot their slip up for us. Might be needed in future. Thanks man.

          1. Dear Mohammed,

            Sorry, I don’t know where should I send it to…may I have your email address?

            Thanks.

            Regards,
            Liszen

          2. Dear Mohammed,

            I have been trying to attach the screenshots to my message to you in the forum, but to no avail, as the “Insert Image” button just popped out some coding letters without allowing me to attach the image files that I have…. and please forgive me as I do not feel comfortable posting my email account screenshots exposing my private information in the forum for public viewing. So may I know which button I should press or what should I do to attach image files to the message for you?

            Thanks.

            Regards,
            Liszen

    2. This is the latest reply email that I got from them after pointing out to them that the limitation of opening new trades imposed on your account is unethical and unprofessional :

      “Dear Liszen Tang,

      Thank you for getting back to us with your valuable feedback.

      Kindly note that as mentioned before, we are continuing our efforts to establish connection with OHEMGEE. So far, and despite multiple attempts from our side, he has yet to respond. He is able to login to his trading account as before and we never blocked his trading account from taking any actions with his open trades.

      Please note that OHEMGEE has a negative balance in his account and should he not cover it in the next few hours, as we requested in our many attempts to communicate with him, his remaining trade be closed by us (margin call). This will cause all copied positions to close as well.

      It’s important to emphasize that should OHEMGEE will decide to stop ignoring our attempts, and reply to us in order to settle his account balance, we will do our best to find a solution with him that will not involve closing this position.

      Should you require further assistance or information, please reply to this message or chat live with us during our business hours.

      Best regards,
      eToro Customer Service Team.”

      Well, in the latest reply email, they had entirely avoided from mentioning the “limitation of opening new trades”…. instead, they kept reiterating the same words previously mentioned, the new point is that your account is now in negative balance.

      Regards,
      Liszen

        1. Dear Mohammed,

          So may I know any method to attach the screenshots to the message for you on the forum?

          Thanks.

          Regards,
          Liszen

          1. Sorry got hotblooded after reading their reply to you and forgot about that. Ill find out and get back to you. Btw another violation of theirs: discussing peoples account balances with others.. Gets better and better. Regulation complaint right?….

      1. And I wonder how this “negative balance” came about all of a sudden. Now this is there excuse for wanting to close all our trades? N.b. My balance has NEVER BEEN NEGATIVE WITH THEM. But why let the facts get in the way of their stories? The more they lie, the more they make it harder for themselves.

        1. Dear Mohammed,

          Sorry, Mohammed, it’s 1:30am in Malaysia now and I had a long day apart from writing emails to the platform… I shall go to bed now and check again in the morning later if you would kindly let me know on how to attach screenshots to the message for you in the forum. Thanks. Good night.

          Regards,
          Liszen

  6. Completely on your side Mo. I have many many issues with an aforementioned platform. The biggest mistake I made was speculating with them in the first place…i’m over 10k down. However, I met you and although the markets have gone against us, I love your fundamental analysis which will prove the winner.

    Executed trades aside, there’s no getting around the fact that these entities do not like the way you operate. You do not fit into the way ‘things should go’ for them – because you are honest and don’t want to make money purely from incentives and push their platform. You’re the rebel who makes the difference!!

    I too would ‘warily’ and ‘dependently’ vote on STAYING with HF. Mainly because they’re all as bad as each other. No such entity really cares about us, they just want our money.

    I say ‘warily’ and ‘dependently’ because I think the main problem we have (for supporters and the non fickle) is the prying eyes on the forum/The Thoughts of Ohemgee). We really should have a vetted, safe and maybe closed community away from trolls and those who don’t like how you operate. I’m not technically minded to know how to put this in to practice but I’m sure someone within is.

    OhemgeeInvest flies under the the radar and the moves we make are only known by us. If we were to decide to change ‘broker’, we don’t want said ‘broker’ making things difficult and certainly not implementing website issues.

    I really do believe this could be something special and hopefully in the near future we look back on this and laugh about the teething issues.
    Just my thoughts 🙂

  7. Thank you for the update Mo. This whole story is quite a reality check and I am really sorry for everyone who has entrusted large amounts of money to this company. It’s quite amazing how behind the nicely packaged marketing and a kumbayah attitude on the social platform there are ruthless sharks interested in profit. We say here with honey you attract more flies (don’t be offended by it) and it definitely is true.

    As for the hf platform, so far I have only had good experience with them but I have to admit that the fact that they are regulated in some shady countries makes me question them, even if they might not deserve it.

    For me, I put the brokers in the same category now (unless there is a bank behind it, so there is a stricter surveillance) and I’m not sure if I would trust them more if they were regulated in say Switzerland. There are scammers everywhere (hint UK leaks) so I’d say stay with a company if they have treated you right and unless you notice some shady practices like “technical” errors at convenient times. If however something like that happens get the heck out of it as fast as you can (if they let you :p).

  8. Hi Mohammed,

    It’s really painful that it came to this end. I for myself didn’t lose much money on [bleep] as after a couple of issues and the support not behaving supportive I didn’t trust that platform/company anymore anyhow. In September I decided to just use it for exchanging ideas and not to trade there anymore, but changed my mind for copying you – with the small amount that was left with them.

    However, losing money is one thing and feeling like being a pawn in the hands of a dubious broker another … Yesterday I came across a report broadcasted by a German TV economy magazine in 2013 where certain business methods of [bleep] were called “criminal”. The journalists contacted BaFin but the outcome was the same as what you experienced: totally useless, as at BaFin they are only registered, but regulated by CySec.

    The day after the broadcasting [bleep] published a hangout in response in which the two representatives of course rejected all of the accusations and made it appear as if they were always just aiming to protect their customers (especially from their inexperience) – and themselves from users with whom they don’t get on (…be it that these use inappropriate language towards other users or that they “plug other service providers”). In that case the account would be closed, but “the balance of course immediately disbursed” ………. Both videos (report and hangout – both in German) can be found on Youtube.

    Mo, this company surely isn’t a group of altar boys, but couldn’t it also be that initially (before they “stopped you from opening new trades”) your account got hacked and password and contact data got changed? I mean, in that case the support would see log-ins (just not from you) and they wouldn’t be able to contact you – and their version would be true too. Shouldn’t be a problem to check the IP of the log-ins.

    Regarding HF: with my HF account I didn’t have any problems so far. The customer support is very responsive and MT4 works flawlessly. BTW the HF PAMM accounts aren’t CySec but FSC Mauritius regulated. However, I guess, this doesn’t make much difference.
    The broker that appears most trustworthy to me is WHSelfinvest. The “disadvantage” with them is that the min deposit they ask for is € 2.500 (or equivalent in USD), so this might be no option for the community.

    I’m very looking forward to your new market outlooks and tutorials. Let’s look ahead!

      1. Nope. Or they would have mentioned it 5 days ago. Why bring this as the reason for closing trades now. First it was allegedly because of risk etc… Possible they are engineering it to look that way. They have lied for 4 days straight, wouldnt surprise me. Its cool though, the more they incriminate themselves the more people will wise up to their act.

  9. Hi Mo! Your report makes me speechless!!!
    As I have been in the Forum and one of your copiers ON different plattforms, I know that You always told the truth even if it did not flatter you!
    So believe me, there is no reason to explain to us, that it was not your mistake!
    I Hope the best for you but I’m not very confident…
    Regards,
    Thomas

      1. Yes, I saw it! It’s really ridiculous! But to be honest, I agree to your legal adviser; there’s not much left to do ON your end…
        You should ask for a statement of the trades. That should show how your Account turned into the negative.

  10. Salam Mohammed,
    I think this is a waste of time and energy. Time and energy which is better spent on trading on HF. I used this platform before and never had any technical issues whatsoever, so I’m all for it. Would like again to thank you for the profits you made us up to november. Hope you will do the same on HF.

Leave a Reply