Elite Financials
[B]Hello all,
today I received the following mail:[/B]
----- Original Message -----
From: Elite Financials
To: .
Sent: Thursday, February 18, 2010 8:05 PM
Subject: Re:
Hello ...........................,
Hello how are you today?
We are disapointed to see your posts on public forum (FPA) however it's your every right to express your findings based on your own thinking. It is now clear to us that we are not going to have you back as our client and thats what we really don't like. Anyway please accept our apologies for not delivering the services up to your desired levels.
I dont want to waste much of your time but please allow me to say you few lines.
1. First of all; we only tried to tell you that risk compensation on trade-by-trade basis is not very practical. Therefore it is better to continue with trading and in case losses hit 20/25% then we can talk about risk compensation, logically. You asked about it earlier, we did. What's the problem in it Sir?
2. We answered your emails promptly (through elite-financials.com's email servers) but later we found that you are not getting them. So we sent you email through Yahoo email ID. We have emails in our sent folder with time stamped, so nothing very hard to prove it. This was confusion number one.
3. We hope and pray that you would be a trader yourself so that you will be able to understand the trading plan of our previous trade. We had a Stop Loss in mind which was gradually tighten. Please find the attached screen shot and consult with any good trader. There was no logical reason to close trades just because of losses. Technicals were showing gradual increase in prices. This made us hold the poistion. The support line was not broken so we didn't close the trade till the end. So we had a Stop Loss; this was confusion number two.
4. You are parroting 3 pips widening but not willing to verify our statement (1 to 2pips) by Tadawul FX. Please Sir, there is no 3 pips commission. Anyway, importantly if we just tried to earn commission (lot sizes) then why we waited almost 11 days and not trade any more on your account. Why on earth we wasted almost a half of the month if we are just here to earn commissions and run away? We do trading professionally and with height of honesty. As a proof, you will never experience our traders doing over-trading.
Moreover Sir, please understand that we are not scalp traders. We trade on higher time frames like 4 hours, 8 hours and daily charts. Because of technical trading on bigger time frame charts, you may see drawdowns on opened positions of about 25 to 100 pips. Rarely this could be higher (which happned recently). However please be advised that we open a trade with logic and close it on logic. Counting on pips is no logic to us, sorry.
Please understand that my basic purpose to send you this email is NOT a try to make you come back. My humble try is to clear any confusions. i hope you didn't mind my this email.
Kind and best regards,
Sofia Bajwa
My answer was:
Hello Sofia Bajwa,
thank you very much for the information about your trading style.
This forced me to check more accurately the trade.
First of all, the screenshot you have sent, shows no time frame and date.
It has nothing to do with the conditions on Feb.4 20:38 and it is probably M1 time frame!
I checked all time frames from M1 up to W1.
There is a clear downtrend on all, no trendline was broken and the volume did not increase!
The trade was a countertrend trade with an extremaly high risk.
You claim not to be scalpers and trade on higher time frames like H4, H8 and Daily.
Every succesfully, experienced trader who trade this style use higher SL and TP.
I have learned as a rule of thumb SL should be min.ATR 3 times. Profit target should be min. ATR.
When you opened the trade with 10 lots on Feb.4, 20:38, ATR14 was 144 on D1 time frame and therefore SL had to be 432 pips.
On H4 time frame ATR14 was 56 and SL had to be 168.
If you had used D1 for your entry, you had risked 43.200 $ or 86,4 % of a 50.000 $ account, for gaining a profit of 10 pips or 1.000$.
If you had used H4, you should have closed the trade latest on minus 168 pips.
But the max. drawdown on this trade was 252 pips.
I can not see any reasonable trade logic in this.
If I check the FPA demo account, the profit on the same trade was 25 pips, on my live account only 10 pips.
Calculated this difference for all trades on the demo acct., the profit would not be 136.000$,
it would be around 54.400$.
As it is to see on the demo account, your average profit target is about 12 pips.
In my opinion is this scalping.
My conclusion is: You take for every single trade with a profit target of around 12 pips a risk of up to 100% of the balance.
The actual open trade on FPA demo is again a countertrend trade with an extremely high risk and shows at the moment of writing a drawdown of 55.524 $ or about 280 pips.
Do really want to make me believe you would have a good trading plan with proper risk management and experienced traders?
I thank god for following the advice of "thze broker experts" to revoce the Power of Attorney.
Best Regards
M.
PS: The attached file shows, for even a newbie like me, a clear downtrend on all time frames.
A financial company has to secure 100%, every message receive the customer on time.
If you use cost free mail accts. you do do not have to wonder about delays.
About the loss compensation guarantee: You promised to cover all losses up to 25% in max. 3 days.
You did not!
==========================================================================================================================
To all FPA members: Lets assume Elite has 100 customers with a 50.000$ account each.
Does anyone believe they would be willing and able to compensate 1.250.000 $ ?
If I had stayed with Elite, I would be in this moment again in a drawdown of about 28.000$. 56% of the balance.
Who knows, if the trend on GBP/USD will reverse and not drop another 250 pips?
Another remarkable point is, they did not complain, when I assumed they would work from home (somewhere in USA or Eastern Europe) and not be located in Dubai. Check their mail above.
If you check the attached screenshots, you will recognice, the downtrend can not be more clear when they opened a long trade.
Please decide for yourself if this company has a good riskmanagement and let me know your experience.