Any guesses on the secret to this one? The 100pct system. I keep getting emails about it that start out:

“Would you believe me if I told you that I could show
you a method which has success rate of 100%?

I’m serious. No position ever ends up a loser.”

I somehow got on their mailing list, I guess. If you read the page, it turns out to be an FX system, so my first guess is that it somehow relies on interest rate differentials to try to “guarantee” a return. The big red flag (other than the promise of a 100% win rate) is:

“While every position will end up producing a profit, the system does experience open equity drawdowns - meaning open positions can and will go negative, sometimes significantly. The trader willing and able to ride out those adverse periods will be well rewarded, though.”

If my understanding of market mechanics are correct, then any system that wins 100% of the time and has an ROI greater than the risk-free interest rate can and will be arbitraged right out of existence.

It’s an eye-catcher, though, to promise no losses… I’ll give them that. To be fair, I haven’t paid the $97 to see what the system is… maybe it is amazing. If they want to send me an evaluation copy for review, I’d be happy to give it every chance to prove to me that it’s safe for people to use.

I saw someone asking about FreedomRocks FX trading on a forum today. I went and looked at it and I had to laugh. They flash some really complex stuff like “Moving Average” on screen to highlight how complicated and intimidating trading is. Don’t worry if you don’t understand what they are talking about, though, because according to their promotional video:

You don’t need to know how everything in your car works in order to drive effictively, and the same principle applies here.

What is the system they sell? It appears they put you in a long position, and then place a buy line below your position, and a sell line above it. Whenever your position goes against you as far as the buy line, simply buy more! Eventually, the price will undergo a correction, they say, and you will make money. Here’s the educational graphic:

Here’s the case where the position goes in your favor, and you inexplicably only sell 1 lot, even though you supposedly know a correction is about to happen:

What they don’t say is… what happens if there is no correction? And, if there is always a correction, why bother putting on the initial position? Their examples show the original position always breaking even…

While the video looks pretty slick, it’s amusing to note that during the entire running time, there’s an obvious “Your Name Here” that they forgot to fill in on their template. :-) At FreedomRocks, attention to detail is job #1!

I have not tried their service, so they could be the best thing since sliced bread. If so, then their marketing is doing them a great disservice by offering to do things like “allow you to select virtually any interest rate you desire on your portfolio.” Yeah, because knowing you’ve got that 10% interest rate will make you really happy when half your account has evaporated…

If you watch their movie and do not agree with me, they have a free trial you can try out. I’m opting to pass on this particular offer of a lifetime.