GUILTY Case# 2011-082 | cmingoti vs www.hfx.com

[cmingoti]

It's a shame it's come to this extreme!

I tried to resolve this in a friendly manner, but had no answer!

All dialogue between myself and the HFX were also sent to a representative of the FPA.

And more than once I insisted on resolving this amicably. It's a shame!

GUILTY!

Thanks for the help everyone!

Carla

 

[Munnyman]

hfx

Guilty without a doubt!

 

[Mark Polen]

Replay to Pharaoh's

Per Your Questions:
1. How many trades on Cmingoti's account has HFX canceled?

We have not cancelled any of her trades for the moment. What we are talking about is a pattern of trading in which she took advantage of a technological failure in the system to generate profits.
This was made a few times during her period of trading. What we have decide to do is to is to act according to the policy of the company and according to the T&C. HFX has zero tolerance for fraud, we don’t want to deal with such traders and we made a decision not to work with this IB or his clients. As an act of good will, and in order to resolve the issue, we have reimbursed the initial funds, both to the IB and to the client


2. Where ALL of those trades supposed to be lag trades?

Yes


3. What percent of all trades were lag trades?

1.5% of the number of trades she made and 10% of the volume of her trades


4. How long did this go on? i.e. How much time from the oldest trade canceled until the cancellation. I know HFX isn't under the NFA, but they have a rule that is very good for comparison - brokers have 15 minutes to cancel a trade if it is due to a pricing error from the liquidity provider.

The client started trading at the 16th of September. At the 22th of September we noticed that there is something suspicious with her activity due to the fact that in the problematic trades she used larger volume than her typical pattern of trading. I think that we should have notified her at that time that we freeze her trading in order to detect the trades. Until that date, she managed to profit 6,500$.


5. How can HFX have so many incorrect prices displayed? Is there something wrong with your connection to your liquidity provider?

As we already explained, HFX’s feed reflects the market price during all trading time. We do not have Limit & stop level limitations from the current market price, we do not obligate to hold positions for a minimum time and we do not control the instrument rates.
Only in a few times during the month, a major part of the liquidity providers of our feed provider making a system restart, all of them at the same time. At this part, due to technological failure, a professional “hacker”, who as an “abusive experience “in the online trading, will be able to identify this gap and defraud the system. What we would like to emphasize is the fact that we are talking about a professional and not an incent trader. Believe me, this time frame is really rare and you must be a pro to identify it.


6. If instead of canceling these orders, you had altered the entry/exit prices to the "correct" price, what would that have done to the profit made?

This is not relevant because the trades were executed in the Take profit a few seconds after they opened. The main problem is that we will never know what the trader what do in “reality” when he has open trade on I million EUR without knowing that he will have profit for sure…


7. For cases where you canceled a Buy order by Cmingoti, were Sell orders placed by all other traders during the same lag period compensated or canceled?

No other trades were opened during that time frame. We are talking about “window opportunity” of a few seconds only.

I hope this answer your questions

Mark

 

[cmingoti]

Dear Mark Polen (is it so?)

At this moment what I want more is that the HFX is labeled as SCAM, so that other people of good faith as I do not be deceived and slandered by people like you!

Then I hope we meet in real justice! In this way, know exactly who are really responsible for this company! And believe me! know who they are and cover every penny that I should also sue them for libel and defamation by slander about me, who commented on this forum!

Write .... the will! soon we will meet ... and you will think many times before hurt anyone!

Good luck to you!

Carla Mingoti

-----Pt-----
Caro Mark Polen (será que é isso mesmo?),

Nesse momento o que mais quero é que a HFX seja rotulada como SCAM, para que outras pessoas de boa fé como eu não sejam enganadas e CALUNIADAS por pessoas como você!

Depois, espero que nos encontremos na justiça real! Dessa maneira, saberei exatamente quem são os verdadeiros responsaveis por essa empresa! E pode acreditar! saberei quem são e cobrarei cada centavo que me devem além de processá-los por injúria e difamação pelas calúnias que comentaram a meu respeito nesse fórum!

Escrevam.... a vontade! em breve nos encontraremos... e vocês pensarao muitas vezes antes de prejudicar alguem!

Boa sorte para voces!

Carla Mingoti

 

[Pharaoh]

Mark,

If there is a known issue that causes a few seconds of vulnerability, why doesn't HFX lock out trade execution during those few seconds? Alternatively, this sounds like a reason to add at least one liquidity provider that doesn't reset at the same time as the other(s).

I'm also very surprised that HFX can't calculate what the difference in profit/loss of those trades would have been if the price feed issue didn't exist. You seem to know what the "true" market price was at those times, so should be able to calculate what would have happened in "reality".

Only 1.5% of all trades? Even if those are deliberately fraudulent (still a debatable point IMO), what would the P/L of the account be if ONLY those trades were canceled?

If you apply your Zero Tolerance policy, all it would take is for any trader to accidentally open or close even once at incorrect prices and your company will wipe all profits made. Assuming HFX has more than a few dozen clients, this will happen sooner or later. That reminds me of the Zero Tolerance drug policy that would have allowed the USA to legally confiscate a cruise ship if a single passenger had a fraction of a gram of any illegal drug in their luggage. Needless to say, that policy failed miserably when it went to court.

So, the information I would like is:

1. What was the P/L of the 98.5% of trades you admit were valid?

2. What was the P/L of the 1.5% of trades you dispute?

3. What does HFX think the P/L of those trades should have been if there had not been a liquidity provider issue?

4. Why didn't HFX lock out the ability to execute trades during those few seconds of claimed vulnerability?

 

[Edu Udo]

Mark,

If there is a known issue that causes a few seconds of vulnerability, why doesn't HFX lock out trade execution during those few seconds? Alternatively, this sounds like a reason to add at least one liquidity provider that doesn't reset at the same time as the other(s).

I'm also very surprised that HFX can't calculate what the difference in profit/loss of those trades would have been if the price feed issue didn't exist. You seem to know what the "true" market price was at those times, so should be able to calculate what would have happened in "reality".

Only 1.5% of all trades? Even if those are deliberately fraudulent (still a debatable point IMO), what would the P/L of the account be if ONLY those trades were canceled?

If you apply your Zero Tolerance policy, all it would take is for any trader to accidentally open or close even once at incorrect prices and your company will wipe all profits made. Assuming HFX has more than a few dozen clients, this will happen sooner or later. That reminds me of the Zero Tolerance drug policy that would have allowed the USA to legally confiscate a cruise ship if a single passenger had a fraction of a gram of any illegal drug in their luggage. Needless to say, that policy failed miserably when it went to court.

So, the information I would like is:

1. What was the P/L of the 98.5% of trades you admit were valid?

2. What was the P/L of the 1.5% of trades you dispute?

3. What does HFX think the P/L of those trades should have been if there had not been a liquidity provider issue?

4. Why didn't HFX lock out the ability to execute trades during those few seconds of claimed vulnerability?

i am following this thread keenly and awaiting HFX's response the the questions above.

 

[cmingoti]

Hello Pharao and ALL,

Thank you for your questions! I would also like to have those answers.
I made a study of all open positions and I am placing here profit.
TRADES --- -------------
Total Trades: 190
Losing Trades: 68 ($ -10,797.20)
Winning trades: 121 ($ 27,703.40)
Largest Lot: 10.0
Lower plot: 0.01
Lot average: 0.97
Total lots: 185.48
Average profit per trade: $ 88.98

Stay Trades ---- -------------

Minor permanence: 00:00 min (4 occurrences totaling USD 590.00 representing 2.11% of trades and 3.73% of profit).
Greater permanence: 196 hours and 12 minutes (that's right!! 196 hours).
Average stay: 10 hours and 47 seconds (that's right! My average position is 10 hours!)

0 min - 3 min - 34 trades - 17.89%
4 min - 15 min - 50 trades - 26.32%
16 min - 30 min - 13 trades - 6.84%
31 min - 10 hours - 64 trades - 33.68%
more than 10 hours - 29 trades - 15.26%


The pivot of all this are two operations that did (one of 5.0 lots and other of 10.0 lots) on 22/set/11.
That same day, I had my first withdrawal request denied by HFX and only that day would have to be aware that trading 125 lots to be able to withdraw any profit.
See the schedule (GMT-3gmt):

16/set/11 - I open my account in HFX with an initial deposit of $ 1,000.00
16/set/11 - Start my operations.
21/set/11 - 8:27 a.m. - request withdrawal of funds.
21/set/11 - 10h13 - get an email from Mr. Andre L. ("Horacio Cardozo Farah") confirming receipt of my request for withdrawal;
21/set/11 - 12h49 - get an email from Mr. Andre L. ("Horacio Cardozo Farah") saying that my withdrawal was denied for not reaching the required minimum lot. In this email he said he did not know of the existence of such a rule and do not personally agree with them. Also confirms the intention and interest of the IB "Paulinho Lamana" that days later would be called and opportunistic fraudster.
21/set/11 - 13h54 - get an email from Mr. Andre L. ("Horacio Cardozo Farah") saying that my account was under review and I'll have an answer in two days.
22/set/11 - 00h - Because of the need to complete my 125 lots to be able to wrest a profit, I decided to open larger volume orders. Then place volumes of 5.0 and 10.0 at the same moment, and realized immediately that would not have psychological support to maintain these positions.
25/set/11 - 09h - I get mail from Mr. Andre L. ("Horacio Cardozo Farah") saying "This difficult. Cheef To facilitate the dealer calls Guy his email guy@hfx.com h
Keep this with you to be saved you need "
26/set/11 - 9:31 a.m. - I get mail from Mr. Andre L. ("Horacio Cardozo Farah") saying they need to fill more than 15 lots based on two talks I did that were not consistent with my lot!

---> Before continuing, you need the forum I have questions ... It is illegal I open a lot out of the patterns I've been working? Especially after knowing that you need to complete 125 lots to be able to withdraw any amount from your account??

At this point Mr. Andre L. ("Horacio Cardozo Farah") left the company, making my access to any information would be very difficult, since not speak English!

My IB maintained contact by skype staff Mr. Andre L. ("Horacio Cardozo Farah") but to no avail!

Only days 12/out/2011 received an email that is intimidating with the following title: "Account 8557545 - Suspected Fraud"

From there, relentlessly tried to defend myself, but without success.

20/out/11 - I posted my complaint on the FPA.
24/out/11 - 10 am - I received the initial deposit amount of $ 1,000.00 from HFX.
24/out/11 - 10:45 - I received the amount of $ 2,000.00 of my IB to minimize my loss and frustration. This amount was returned to my personal account of his IB.

Since 24/out/11 - I had more direct contact with the HFX.

For more than one time tried to talk to that you take this forward, because the damage would be much higher for both (mainly for the HFX), however, my emails were ignored. I sent copies to the moderator of the discussion and he can confirm this fact if necessary.


Final considerations.
Unfortunately, in this borderless mundoi the Internet provides us, we are faced with all kinds of people and philosophies.

I must make clear to everyone that my personal and family keeps me from acting in bad faith with the people.

I am saddened to re solve this situation in this way, however, take you to the last consequences in order to recover my capital won fair and square!

Exposure of FPA in my case was only the beginning of my battle to regain what I have for right!

is important to say that I have with me all the e-mail dialogues between me and my IB and HFX.
Again, I ask myself the disposal!
Regards.
Carla Mingoti

 

[efexbrasil]

Dear Mark, most worthy representative of HFX,

Why do your employees use false names in your company?

To me it is clear that you are scammers!

I have my doubts as to his real name!

I remember Guy Barak and Andre L. in StartForex, brokerage things thousands of dollars in damages to many people! Including me!

You should be caged!

GUILTY!! with all my power!

 

[Mark Polen]

Dear Mr. Pharaoh

Dear Pharaoh,

Thank you for taking the time to review this case seriously.
It is very important to me to show that HFX was the side that got hurt in this case and not the one causing the damage.
Every day that goes by, HFX find out more incidents that is hard to ignore in this case, and I wanted to make sure you are well aware of all of them.
HFX on a daily basis tries to improve and when we see that we were wrong, it's ok in our book to admit that we were wrong (after all it is ok to error, we are all human)

It is important to understand HFX's policy in order to understand this case. According to HFX agreement with our clients we do not accept any traders that act in bad faith. HFX reserves the right to close this account and to stop taking business from this traders at any time. This Policy was signed by the IB and his client.

Please allow me to explain this case. HFX got contact by an IB by the name of Paolinho, he send us a client by the name of Carla, the IB deposit $2500 and his client Clara deposit $1000. After several weeks of trading, the IB lost all his indicial deposit and the client used a technological error in the feed price. At this stage HFX waited for an answer from our feed provider about Mrs. Clara positions (did she trade in good or bad faith). And at the same time, sent mails to the client that she is under review.
The second that HFX found the answers about the abuse in this account, we stopped and closed this account. HFX has decided that we doesn't want any business with this client and the IB. (we all know that there is problematic clients in the world, HFX chooses not to work with them.) our integrity and honesty comes first!

HFX dealing room contact the IB, Mr. Paholino and informed him about this case. HFX refunded the IB the $2500 that he lost and sent another $1000 to the Mrs. Clara, both of them has been ask not to work with HFX ever again.

Dear Mr. Pharaoh, Do you really think that HFX would risk HFX integrity and reputation for $3500? We wanted to put this case beyond us and to move forward.

Mr. Paholino even thanked HFX for this trustworthy and integrity act. He was so embarrassed by his client acts so he apologize on the whole incident. It was cleared and agreed upon by the IB that both the IB and the client cannot trade with HFX again and they will receive their initial deposit without prejudice, although HFX didn't had to do it.

HFX at the same day sent the initial deposits for both Mr. Paholino and Mrs. Carla. Few days later, HFX was shocked to hear that our sales personal have received personal threats on their families from the IB and his client. Furthermore we have found the both of them are spreading lies about HFX, leis that never happened. We also found that the IB has several "fake" users in FPA that wrote Guilty y on his behalf to create more damage to HFX.

As you know, there will always be a traders that tries to find this holes in the system, but I can't speak on their behalf, what we can tell you on behalf of HFX that we strive to serve our clients all over the world with the best possible way.

HFX was happy to find an unbiased ear in this forum. HFX can also provide many clients that can verify our integrity.
waiting to hear your thoughts.

 

[lamana]

Dear Mark,

Life will show you what lies do not hold that not worth it! You pay for it, one way or another!

It was you who came after me! It was his employee with a false name that came to me with IB, and I once again fall into that trap!

You're trying to change the subject! and not be able to! I will not go over that your dirty little game!

None of the responses made by our friend Paraoh been answered! No! They want to shift the focus!


Unlike Mr. Guy Barak, Andre L., my name is cleared! My reputation is respected! I repeat that no one has absolutely nothing to discredit me! Nothing! Your assessment of me is nothing to me! In fact, you're nothing! and never will be!


I have closely guarded conversations with Mr. Andre L., from the moment he first contacted me!

If I'm just so despicable, why they came for me?


You know as much as I what is the truth behind the bunch of lies that you are trying to support!


I do not utter more! Register here for the last time, my anger for people like Mr. Mark Polen (this will be the same name? Believe I can find). The people behind companies such as HFX should be arrested!

Justice will be done! One way or another, Carla will be rewarded!

Health and peace to all members of the FPA.