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Scam: Rent A Signal

Discussion in 'Scam Alerts' started by chk56, Sep 16, 2009.

  1. chk56

    chk56 Recruit

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    This is a forex signal service which at the first glance looks appealing. They offer free signals and payed signals. A few of those payed signals are truly expensive, up to $200 monthly. I subscribed to one of those signals, because I was impressed of its statistics, and I thought it must be damned good for that price ($150 monthly).
    This vendor opened a GBPJPY trade long, when it was obviously overbought, and for the next few hours he had several chances to close the trade on break even or in a little profit. He didn't. I didn't close the trade manually against all common sense, because I thought that this expensive "expert" should know better.

    Well, the "expert" let the trade rally down to -600 pips, and then.. he closed it! But wait, that's not enough. Now that we had arrived at the bottom of the graph he opened again - SHORT! - And he delivered us another fine -200 pips.

    It looked almost as if it was made on purpose. So, that's the kind of signal providers you can find on the RENT A SIGNAL site. Especially the expensive ones seem to be the most efective when it comes to wiping out your account.

    You have been warned.
     
  2. Pharaoh

    Pharaoh Colonel

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    Sounds more like an incompetent signal provider than a scam.

    ALWAYS test new signal providers on demo or on a live account that lets you trade microlots or even nanolots. This lets you see if they work for no loss or only small losses to your trading accounts.
     
  3. Johnfa

    Johnfa Private, 1st Class

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    There are some very good system there. You lose because you take the bad one.

    I must say that the live chat support there is very bad, they answer like a machine, they don't understand some basic questions and they are very... impolite too. They need well trained before sitting there.
     
  4. Brian1980

    Brian1980 Recruit

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    Actively using RAS myself, I must defend them from criticism of one of the signals they host rather than of the service itself. It's illogical to expect them to be held accountable for every signal they provide since each signal comes from an individual vendor and RAS simply provides a place to host them. It's like criticizing a retail store for selling a bad product rather than criticizing the people who manufacture the product. It's up to you as the signal buyer to carefully examine its performance and compare it against that of other signals until you find something that you like. Also remember that statistics can be faked, so if possible try to choose a signal with a clone so you can see how it really performs. As Pharaoh said, always test before you buy. I understand that the 1 week testing period is way too short, and I believe RAS is working on that. As to RAS support staff, I've only needed them once, and I had a good experience.
     
  5. Johnfa

    Johnfa Private, 1st Class

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    What do you mean ?

    One week testing is enough (even no need if you know well how ras works) the key is you can pick good system by studies it's performance.
     
  6. cornedp

    cornedp Recruit

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    this is NOT a scam, more an issue with the service provider (Rentasignal) that had issues with viruses and database issues.

    You really need to get your facts straight. Yes I lost money as well, but I dont whine and through tantrums about it on every forum on the web.

    Please grow up!!!
     
  7. Icle

    Icle Recruit

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    RAS: good system, or big scam?

    Are you very sure this system is a scam, before cataloguizing it as SCAM?

    Probably i think the idea is not a scam, and the service itself seems good.

    The only thing to really verify is if the ex4 EA and the DLL can act as a VIRUS to investigate/read/write/send/receive files and data from user's hard disks to the RAS service.

    If the EX4 and DLL would run like a trojan, it is worse than a scam!

    But how to discover if the dll and ex4 are like trojans? (read/write on the hard disk and folders, and send/receive data over the internet, datas.. not only signals....)

    Bye
     
  8. 5of7

    5of7 Representative for TheCollectiveFX

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    Did someone say 1 week is enough to evaluate a system?

    If you mean that in that one week the system generated a couple hundred trades, then I'll give it to ya. Sure, 1 week. Sounds like criteria to spend $200 a month to make 1 micro trades to test it forward.

    But a few plots on an equity curve does not statistics make. It's pure insanity. And I'm the expert on insanity. I practice it daily.

    If someone claims that's enough to subscribe to something, then I'll agree, let's label it a scam.

    To evaluate any EA or system you need at least the following:

    (1) A statistically significant sample.
    en.wikipedia.org/wiki/Statistical_significance
    or type "statistical significance" into wiki.

    (2) Largest historic drawdown. How much did it draw down in the past on the largest drawdown. (Normalized to 1 pip, as many EAs/Systems change position size dynamically).

    (3) Longest drawdown duration. If a system draws down and languish for months at a time, what fun is that? You can use (2) and (3) to determine when the system goes out of character.

    (4) Average Trade. Does (Net Equity)/(Trade Count) exceed variations in spread, transaction costs.

    (*5*) Intratrade drawdown. Most systems will let losers run for hundreds of pips. If you see this behavior, be scared. Be very scared. This is account killing behavior. So you have to see it running in demo, or they have to show live open trades to see how drawn down they are. Without this little bit of info, you know nothing.

    There's probably a few more, but who cares really. Blah, blah, blah. Statistics, shmistics. No one cares.

    "Just give me the next magical system I can pay for to make me rich. Because gee, the system creator doesn't know enough money management to make money off his own system, that's why he's renting it to me. I better jump on that one quick before he figures it out.

    Good thing I don't need to learn how to trade -- I've got a credit card."

    Um, I think it's getting late, and I'm getting a wee-bit on the negative side. Time for me to sign off.

    -Tired Trader 5of7 of TheCollectiveFX-
     
  9. Sherry

    Sherry Recruit

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    This guy made a mistake with his account settings at Rent a Signal or did a poor job choosing a signal. Either way, it's no cause for a scam warning. Rent a Signal is not a scam. I have bought and sold signals there. Customer service is rude at times, but they are good overall and I haven't had any disputes with them.
     

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