Octafx scam - Eat my profit 74000$+

Messages
20
Dear Ayisha Rajasekhar,

We apologise for the wait in providing our response, please understand that our team had to compare the data you've provided with our system data. To do it as thoroughly as possible, we had to take the necessary time.

We wish to include a disclaimer that the data we're about to add below is solely individual, which means that it does not reflect all possible cases of arbitrage, rather it refers to your case only.

First of all, we wish to include an explanation of how arbitrage can be detected. Followed by the distribution of your orders by duration and difference in ticks, as well as profit.

Fig.1: Detection of arbitrage trading


In respect to Fig.1: The client opens a Sell Order: If he knows that the next tick is much lower than the current one, he immediately opens an order. Thus, it directly receives a profit if the difference is higher than the spread. The client opens a Buy Order: If he knows that the next tick is much higher than the current one, he immediately opens an order. Thus, it directly receives a profit if the difference is higher than the spread.
Such a significant difference with a neighboring tick occurs very rarely. For example, dozens of price changes can happen in a few seconds, and only one of them will be larger than the spread. This is normal if the client sometimes opens orders on a strong market's move. But, when most of his orders take place on strong movements - this is a clear arbitrage. Since the client knows about the strong movement, before this movement, he opens a deal in the corresponding direction. An important feature of this strategy is the short duration of orders, the use of an expert adviser.

The report below will present specific examples of arbitrage trading in your case.

Fig.2: Distribution of orders by duration and difference (in points) with the next tick



In respect to Fig.2: This chart shows us the distribution of your orders counted by time and the difference with the next tick at the opening. Please note, that if the difference is positive, it means that the tick client took was better for him by the number of points on the x-axis. The value of the bar = number of orders.
The chart shows that 51 orders out of 64 (80%) were opened on a tick when the difference between the opening tick and the next tick was more than 200 points in the client's direction. That means that in the case of Buy orders, the next tick after opening was more than 200 points higher, and in the case of Sell orders - 200 points lower.
The chart also shows that most trades opened before this price difference had a duration of up to 30 seconds. This low duration of orders is one of the key elements of arbitrage trading.
The probability of obtaining such a distribution of orders is less than 1% and is considered a purposeful implementation of arbitrage.

Fig. 3: Distribution of orders profit ($) by length and ticks difference (in points)

In respect to Fig.3: This graph shows that most of the profit from your trades was obtained with trades lasting less than one minute and with a difference of more than 200 points from the neighboring price.

Summarizing all of the above, our team provided the following conclusions regarding why was deemed you were using arbitrage:
  1. High frequency of short duration orders;
  2. High profit as a result of high-frequency orders (93% of the total profit);
  3. Opening orders only in the moments before strong movements and ignoring weaker market movements;
  4. Non-randomness of opening high-frequency orders on strong market movements (with a probability of more than 99%);
In light of all the above, we wish to include a couple of examples:

TicketPositionOpen_TimeTypeVolumeSymbolOpen_PriceS / LT / PClose_TimeClose_PriceProfitDuration (min)Difference with previous tick at the opening of order (in points)Difference with next tick at the closing of order (in points)
4021386402138625.03.2020 7:56:14buy10XAUUSD.m1 610,810,000000,0000025.03.2020 7:56:451616,215 400.000,51729038
4033299403329925.03.2020 7:53:15buy10XAUUSD.m1610,780,000000,0000025.03.2020 7:53:481616,025 240.000,550202379
4033307403330725.03.2020 7:55:07buy10XAUUSD.m1610,960,000000,0000025.03.2020 7:55:241615,965 000.000,283217379
4021385402138525.03.2020 7:51:27buy10XAUUSD.m1610,350,000000,0000025.03.2020 7:51:521615,164 810.000,417241375
4032479403247925.03.2020 7:02:41buy10XAUUSD.m1610,030,000001 614.0025.03.2020 7:02:451614,684 650.000,067337238
4032483403248325.03.2020 7:12:35sell10XAUUSD.m1615,150,000000,0000025.03.2020 7:12:401611,8503 300.000,0834602
4032713403271325.03.2020 7:59:34buy10XAUUSD.m1609,750,000000,0000025.03.2020 8:01:071612,823 070.001,5502656
4032754403275425.03.2020 7:14:57buy10XAUUSD.m1608,890,000000,0000025.03.2020 7:17:221611,622 730.002,417233317
4033265403326525.03.2020 7:19:18sell10XAUUSD.m1611,490,000000,0000025.03.2020 7:19:301608,892 600.000,20040919
4033271403327125.03.2020 6:54:25buy10XAUUSD.m1610,940,000001 613.6025.03.2020 6:54:311613,352 410.000,100361
361

Please, let us know should any assistance be necessary.

Kind regards,
OctaFX Rep.
@OctaFX Rep Here I have attached 1 minute candle chart of morning section on 25 March 2020. (All Broker companies have same).

you don’t want to your client makes profit, that’swhy you locked your candle chat on 24 March 2020 and also locked between 26 March 2020 to 9 April 2020

can you agree your XAUUSD candle chat locked for that 2 weeks because of my profit? Here also attached your Twitter reply screenshot regarding this matter.

you opened market to client for trade is right thing... but, trader made profit is arbitrage? What is your explanation?

@FPA Forums Team @4evermaat please guide me for further!
 

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OctaFX Rep

octafx.com Representative
Messages
176
Dear Ayisha Rajasekhar,

Allow us to clarify certain matters in light of your questions. Firstly, there is no explanation of how we detect arbitrage in our Customer Agreement. And it's not its purpose. The description of what is arbitrage was sent to you via live chat, followed by an explanation of arbitrage detection and all arbitrage patterns in our post to you.

Regarding your trades, it is impossible to create a pending order, set all trigger prices, and open and close it in one second. Also, it's not possible to open such short profitable orders on high volatility market in less than 1 seconds without the knowledge of the next price. As previously mentioned, your trading strategy included non-randomness of opening high-frequency orders on strong market movements (with a probability of more than 99%). Meaning, it is impossible to open random orders without knowledge of the next tick and accidentally guess the market's movement every time. The probability of guessing the next tick even a few times in a row is less than 1%.

As for your ticket number 4021385, we allow trading with short duration orders on our platform. Yet in this particular case, we refer to our Customer Agreement paragraph:

"4.9. In exceptional cases short-term orders lasting less than 180 seconds can be cancelled should they be considered an abuse."

In this case by abuse we mean the use of arbitrage, which is strictly prohibited, and all your orders were considered arbitrage. Therefore, even if you would be able to open those orders manually, this would mean that you knowingly decided to abuse our Customer Agreement.

Hereby we wish to add that according to our Customer Agreement, point 3.10, points 4.8 and 4.9, all your orders were canceled, including EURUSD.m, GBPUSD.m, XTIUSD.m orders.

Continuing, we wish to add that 1-minute candles don't represent gaps between neighboring ticks, and it's not unusual that our charts are similar to other brokers. Even though you should be aware that all brokers provide different trading conditions.

And lastly, we wish to make it very clear that trading XAUUSD.m was not stopped due to any of your activity or profitable orders. Trading for this symbol along with the chart was disabled during technical problems with our Liquidity Provider, which occurred on that day. Trading on XAUUSD.m reopened as soon as all technical issues with our LP were solved: it has nothing to do with our research of your complaint.

We hope this clarifies your concerns.

Kind regards,
OctaFX Rep.
 

regulations

Recruit
Messages
1
@OctaFX Rep Here I have attached 1 minute candle chart of morning section on 25 March 2020. (All Broker companies have same).

you don’t want to your client makes profit, that’swhy you locked your candle chat on 24 March 2020 and also locked between 26 March 2020 to 9 April 2020

can you agree your XAUUSD candle chat locked for that 2 weeks because of my profit? Here also attached your Twitter reply screenshot regarding this matter.

you opened market to client for trade is right thing... but, trader made profit is arbitrage? What is your explanation?

@FPA Forums Team @4evermaat please guide me for further!

Ayisha can you tell me how this case was ended? did you get your money or not ? it is really important for new traders to see how brokers treating their customers.

regards
 
Messages
20
Ayisha can you tell me how this case was ended? did you get your money or not ? it is really important for new traders to see how brokers treating their customers.

regards

Hi, I didn’t get any money from that robbers. I am totally frustrating with Octafx’s show off explanations. In there reply they show off many thing, important answers are missing. If octafx is real broker where my profit money goes? My case is open book. I made profit using ultra fast trades manually with my high risk (increasing lots) trading style. You can see it in my trade history. (This type of trader is very rare that’swhy octafx stop there ‘XAUUSD’ chart for 2 weeks. Restart within a hour after my account permanently blocked) my not ready to give my profit. I am waiting for ForexPeaceArmy action. I really need my profit money or compensation. please give me justice.

1. they lied on may 27 about ‘arbitrage’. In customer agreement 4.8 given different explanations and here octafx rep. giving some another explanation. What is this. also, pointed there is no explanation in customer agreement. (See image attached)

2. More than 2 months octafx giving the reason ‘arbitrage’ on customer agreement 4.8 only. On may 27th octafx rep. replied, they newly added 4.9? And giving pathetic explanation. How can I understand customer agreement 4.9! (Short trades are allowed but, not only for you. Because, it's except short trades with ‘huge profits’?)

61BA58B0-24EA-4C83-B899-83741046A466.jpeg

143721EB-A03C-4D67-98FB-8A7CC82A7B67.jpeg
 

4evermaat

2nd Lieutenant
Messages
1,965
Not that I am a fan of OctaFx's business model, but I did look at the history statement. The trades do appear to be less than 3 minutes for most of them.

It's bad enough OctaFx dishonors their agreement when the trades are > 3 minutes. So I only imagine that less than 3 minutes it is not worth arguing with them.
 

neri03

Recruit
Messages
4
Stay away from brokers who do not allow arbitrage because thay are money makers who plays against you, by watting with your orders to deal with them and not realy ecn brokers that just transfers your orders, so do not mind at that because of fast execution
 

louise.kepinska

Corporal
Messages
89
Appreciate you sharing your story, my friend had a similar issue with OctaFX at the start of the year.
Their support were really awful too.
 
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