Does anyone know why this account (url below) has so many deposits and then almost immediate withdrawals of the same amount?
At first I thought the trader might be trying to reduce his/her drawdowns but it seems he/she deposits even when the account isnt in drawdown.
Many scammers use cent account to scam people .
The trick is simple .they deposit $100 and make it like $10 k in cent account .
When the DD going big than they deposit $100 more . ( every time you deposit more fund the DD will going down ) .So the number look perfect than withdraw money when the number down .And keep doing like that .
With about $500 even litte kid can make account number look perfect that way for long times (few years or longer ).
For people follow his signal or people buy his EA will be wiped out .
I wouldn't go as far as saying they are scamming, but I will say is that if the account is 10usd or 10,000usd the % change is still the same. The trades would have to be executed the same way to get the desired results.
You still don't understand about how they control DD by adding deposit .
In order for people follow his signal or buy his EA . He must show the record history for 6 months .
I is supper easy to make record look nice for 6 months by adding more deposit .(add few more hundred $ in to account is no problem for any body ).
after 6 months than he start show the record with prefect number ( all the time low DD and good return ).
now he start sell EA or signal .think about if he can sell for $2 k a month . how long do you think he can make profit ? 1 month .invest few hundred bucks and make few thousand $ a month by selling signal .he can not lose in this game , even he can survive for few months , who knows if he lucky than a year or longer .
here is the trick again :
You have account balance $100 .If you want to lower DD by 50% than deposit $100 more .$100 is easy to have to add more on trouble account to lower DD . and even if the DD getting bigger .There is no problem by double balance by deposit $200 more , so DD will even muck lower or account will not be blow up .
Just imagine you have $10 k or $100 k account .
now you want to lower DD by 50 % ? you need $100 k more to do this . if you need to save account you nee to even deposit $200k more for second time . do you think any body has $200 k ready .
so now you see the different ?
So yes , it is scammer .