Ethically okay?

This is a discussion on Ethically okay? within the Educational Resources forums, part of the Commercial category; post moved from forex to education Hi everyone - I know this is long but would like lots of comments ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Sep 26, 2017, 9:37pm   #1
Joined Nov 2006
Ethically okay?

post moved from forex to education


Hi everyone - I know this is long but would like lots of comments to decide if this is okay.

outline scenario
--------------------
Let's say that I've had some success with trading simple 123 tops and bottoms based on the Elliott wave principle of 5 waves. Wave 1 is the first impulse and wave 2 is the first retracement.

Wave 1 runs from a price level I'll call level 1 to price level I'll call level 2 and wave 2 (the retracement ) runs from the price level 2 to the end of the retracement wihch I will call price level 3. These levels form the simple 123 pattern.

The system is to find these simple 123 patterns at turning points where a currency market is making a top or a bottom, enter the trade when price next breaks the level 2 by a pip or so, and stay in the trade until it has reached a profit of around 3/4 of the move from level 1 to level 2. In more technical terms it would be trading the breakout of an Elliott first wave and riding the third wave until an approximate fibonacci extension of 1.75.

Having had some success with this I think I could teach it in a course and also make some weekly calls to customers. The problem would be that there is no real insentive for customers to stay paying the monthly fee once they have done the course. (other than the calls)

A way around this would be to NOT tell the customer that the exit is a fibonacci extension but instead create a little online program where the customer inputs the level 1 and level 2 prices and then the program gives them the target.

If I said that the calculation in the program was proprietary and could not be divulged then the customers would not know that the calculation was really just a fib extension and maybe would believe it was a more complicated algorithm or something. This way I would be able to charge a recurring fee of say £79 and keep customers using the online calculator.

Whilst morse seasoned traders would be likely spot this it could be marketed to new traders who probably wouldn't. At least not for a few months anyway.

Now I know this is not a scam as it has traded with some success especially with options and equities and I'm sure it is not illegal to make a program and say it's proprietary but.....

my question is....

Would this be considerred in any way morally wrong or unethical ( the propriatary program side of things with the recurring subscription) or totally acceptable business practice?

Like I said I'm sure it would not be illegal but wonder if traders would be irritated if they found out that the program doesn't do anything special and that standard fib tools could do the same thing.

At the end of the day reputation is everything. Could this be bad for reputation?

All comments would be welcomed.

Please note though that this is not a big cost to pay and many other trading courses cost alot more so even if a trader was to take 6 months of the service it would end up being under £500 and they could have made their money back by that time anyway.

I look forward to ethical comments on what most folk feel about this - thanks
beany is offline   Reply With Quote
Old Sep 26, 2017, 9:40pm   #2
Joined Nov 2006
beany started this thread wow this post has been up a day had 30 or so views but not one comment! I thought I would be out and out flamed! Maybe my concerns were unfounded and it is just as good a business practice as any other. Thank you for lack of comment. That in itself speaks loads.
onwards and upwards :-) yey.!
beany is offline   Reply With Quote
Old Sep 26, 2017, 10:34pm   #3
 
barjon's Avatar
Joined May 2003
No, it's not ethically ok, but no more offensive than most of the many dubious "get rich quick" offerings.

Before you could canvass for clients with a clear conscience you must first be satisfied that your 123 strategy is a successful one over the long term. So how long has this "success" of yours lasted?

You will never get over the fact that you are hoodwinking your clients by not revealing you are just using a fib extension, so that will always be unethical. You'll be in good company with the other shysters around.

Of course, if what you have is really successful then you won't need any clients - you can just trade your way to your fortune.

But then you knew all this didn't you? It didn't need to be spelt out so don't take the absence of comment as approval.
barjon is online now   Reply With Quote
Old Sep 26, 2017, 11:58pm   #4
 
Atilla's Avatar
Joined Nov 2006
Quote:
Originally Posted by barjon View Post
No, it's not ethically ok, but no more offensive than most of the many dubious "get rich quick" offerings.

Before you could canvass for clients with a clear conscience you must first be satisfied that your 123 strategy is a successful one over the long term. So how long has this "success" of yours lasted?

You will never get over the fact that you are hoodwinking your clients by not revealing you are just using a fib extension, so that will always be unethical. You'll be in good company with the other shysters around.

Of course, if what you have is really successful then you won't need any clients - you can just trade your way to your fortune.

But then you knew all this didn't you? It didn't need to be spelt out so don't take the absence of comment as approval.

I read these three bloggs only because I saw your reply and now feel I have lost 5 mins of my life I'll never be able to get back again.

I feel cheated. Swindled even.

I'm in mixed emotions as to whether to hold you or him responsible for my loss.

How do I overcome my dilemma?

So as to redeem your self dear Jon, what is your perspective on LLOY and potential future divis? I think you mentioned in the past you got rid of your lot. If you can do the honours gathering some qualified informed opinion with your better half I'd be much obliged.
__________________
Know your L I M I T A T I O N S
Atilla is online now   Reply With Quote
Old Sep 27, 2017, 6:12am   #5
Joined Nov 2006
beany started this thread
Quote:
Originally Posted by Atilla View Post
I read these three bloggs only because I saw your reply and now feel I have lost 5 mins of my life I'll never be able to get back again.

I feel cheated. Swindled even.

I'm in mixed emotions as to whether to hold you or him responsible for my loss.

How do I overcome my dilemma?

So as to redeem your self dear Jon, what is your perspective on LLOY and potential future divis? I think you mentioned in the past you got rid of your lot. If you can do the honours gathering some qualified informed opinion with your better half I'd be much obliged.
Well thank you barjon for some contribution.

As for you hun you add nothing........ and dont you dare hijack my thread.

beany is offline   Reply With Quote
Old Sep 27, 2017, 8:17am   #6
Joined Apr 2016
Should be fine. You are doing no worst than all the trainers out there. They can't trade, yet they teach. You can't make profit, yet you sell signals. Same thing.

There are plenty of stupid people out there who are not happy until their money is gone. It would be immoral if you don't help them. If you set up your service, I will tell my brother about it. He will buy it no problems. All you have to do is tell him you can double his money. He won't care if he actually doubles his money or lose the lot. Most people are like that.
EnlightenedJoe is offline   Reply With Quote
Old Sep 27, 2017, 9:08am   #7
 
Pat494's Avatar
Joined Mar 2004
Surely it's the end result that is important. It really doesn't matter how you get there. A regular profit is not to be sneezed at.
__________________
Imagination is more important than knowledge.
Einstein
Pat494 is online now   Reply With Quote
Old Sep 27, 2017, 11:26am   #8
Joined Feb 2002
With a successful strategy I can't see why you'd want to give yourself extra work in creating a course, marketing your service and managing a client base.

If your strategy isn't successful at all you're going to crash and burn as soon as you wipe out your own trading account and your clients', at which point they'll be all over the internet damning your reputation.

If your strategy is moderately successful but maybe offers an unpredictable or lumpy revenue stream, I say go ahead and sell the course. But you won't have much success at that because you're not really adding value to what people can find out in 10 minutes on the web for free. So you need an extra element that makes it worth their while to pay for your methodology and take a risk with that when they could use their own for free.
tomorton is online now   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Bio-Genetic is Hot investment but is it worth ethically ? tradingknowledge The Foyer 1 Oct 31, 2004 9:16pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)