Just been exchanging emails about the vagaries and deceptions of MMs and Brokers with a fellow trader, and the BUY ZONE and TRO came into the mix. This is what he had to say about TRO and his wares. I have nothing against TRO, in fact I admire his huzpah; though I think the less savvy/greener traders may like to be aware of the below.
I know TRO has already declared himself to be an Introducing Broker for whatever FX bunch he champions, but what I hadn't peviously realised is that with his unique scalping machine via his multi-coloured, ready to go, plug-n-play MT4 indicators he has rather cleverly hypnotised some of the weak willed into using, he's setting himself up a very nice little number, without too many realising it I suspect.
Scalping can't work long term in current markets - especially FX. But of course, the business model of most MMs/Brokers is not to develop a long-term relationship with the client, but to extract their funds from them as quickly as possible. This is far better facilitated by more rather than fewer trades, and preferably with as high a gearing as the mug punter can belive his luck to have been offered.
For those who don't have a systemn to call their own, this looks the Dobs BooBoos...lots of colours, lots of action, loads of trades. And of course, some will get lucky, for a week, or a month, or two. But not long term, not consistently. But they're paying spread or 'very small' commission on every one of those scalps and making the MM/Broker probably as much as they do on their good trades. The MM/Broker doesn't share the same fate on the losing trades - they still make their spread/commission of course.
TRO doesn't really need to trade. He captures the spirit with his glossy indicators, introduces them to SharkFX (any broker, MM for that matter, probably OANDA included) and gets a small commission on every trade they do - until they run out of money. But by stoking up the various bulletin boards, he rarely runs out of new takers. No wonder he's been banned from so many forums - they caught on to him. I wonder why that didn't sit well with me when I first read it - why would any trading site NOT want someone around whose only aim was to help other traders? LOL.
It's a slick, shrewd and clever little wheeze and I wished I had thought of it.
JJ
. But thanks for keeping us posted, with your factual results. As i said, these are exactly what this thread needs. Live results from a third party (you have been a t2w member for years). Please keep them coming (while you are producing them that is).
