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Infinity Shares update on the changes and the reason why. Existing members should look at I-S as a long term venture and understand the changes that has to be done.
During the last couple of weeks, we were pretty much able to cover most of the Major releases but we have seen some issues with our broker that we discounted due to the holidays, and to other reasons that were from that time seemed plausible. We now have a full update on the situation and this is what the mail is about.
Some of the members would remember that we switched brokers last year because we were encountering problems with liquidity and availability of market prices during news releases and other important times (opening and closing of the markets). We spent some time looking for, researching, and contacting brokers and doing everything possible to ensure the continuity of InfinityShares Forex Club. After making sure that Internaxx was the real deal, and after repeated assurances from them through email correspondence that they do not descriminate between news traders, scalpers and tech traders, we finally decided to open an account with them. Opening an account took a while because a lot of the requirements had to be submitted via snail mail and Stijn and Steven had to make personal appearances to be able to open the accounts properly.
We said OK to the comissions that they charged ($15 per lot, per direction, which computes to $30 in opening and closing a single lot). We said OK to their higher than normal spreads, taking our tech trades a notch down since we were mainly focusing on fundamental announcements.
Now after a few months of trading with them (at the same time paying thousands in $$$ in comissions) they decide to change some of our positions which resulted in a minor loss. Not too much tho, but disheartening nonetheless.
We are now looking for other suggestions for good brokers, since we will be also shifting our focus from a 80/20 Fundamental/Tech stance to a 60/40 Tech/Fundamental stance, with us shifting the focus to mainly technical trades while using fundamental indicators as an exit strategy/focus and not the other way around which had worked for us for so long. I guess it would be easier to find a broker that offers tight spreads with minimal comissions rather than a fast broker with unlimited liquidity.
What would this mean for InfinityShares? Well, it’s a paradigm shift for all of us. We will be evaluating our options, and as with before, we appreciate everyone’s inputs on this issue since it is YOU the member that makes everything possible. We invite everyone to the forum: http://www.infinityshares.com/bb or to Jude’s Nobsnetwork forum (IS has a topic there) to discuss the next steps in our program.
We will probably not be risking any more trades the rest of the week and longer until we resolve this broker issue ASAP. Since multiple positions have already been moved around 10 pips from their entries, we do not know what the long term impact to our account will be if we continue to trade and they will continue to adjust our positions arbitrarily.
From now, we’re suspending our Fundamental/News based trading as far as Internaxx goes, and will focus on some small tech trades that will hopefully present themselves over time, and hopefully we can continue to trade full speed. We already have a bunch of problems with scheduling, now this comes along. With the support of our members, we’ll get through this.
Note to Doomsayers: No, Funds are not frozen in any way. And as a gesture of good will, we will be lowering the sell to admin fee from 4% to 1.5% and we will try our best to cover conversion fees of real money to e-gold with reserves and personal funds. Also, no withdrawal fees as usual. We know that this is as disappointing to the members as it is to us and we are doing our best to make this transition as painless as possible.
Better times will come, IS has had it’s rough patches before and this is no-different. We will overcome this obstacle and continue to provide safe and stable profits for our members in the coming weeks, months, and years. We’re already in the process of making sure that everything will be back on track in the coming weeks, so a little more patience will be required on everyone’s parts as well.
Thank you for the continued support.
Steven, Stijn, Xtian
InfinityShares Forex Club
http://www.infinityshares.comAttached below is an email from Internaxx, with some parts taken out because of the sensitive nature of the infomation
Mail From Internaxx
Dear Sir,In response to your various mails, regarding the change of prices on your positions for Forex trading.
We have carried out a thorough investigation of these issues and have discovered that your trading pattern is only at a time when announcements of economic data are duewhich utilises a trading strategy to take advantage of sensitive periods in the market.
We are aware that utilising such a system allows the user to exploit the market by obtaining a price that is out of the market quoted rate at this sensitive time. Therefore, the prices that you have obtained, have been changed to the next available quoted price in the market, after the economic release.
We remind you that it is a Market Makers right to choose when and how to quote. There is therefore no obligation to quote at such volatile periods, when important, sensitive announcements are due to be made. Also, such trading activities are not seen to be for the good of all participants in the market and as such, as I am sure you will understand, we cannot support or honour prices believed to be derived from such practices.
Best regards,
**
Internaxx DerivativesSidenote: before we opened this account, we mailed them various times to make sure they allow news traders.
Popularity: 2% [?]
As I.S. has discovered, It is very difficult to find a broker that will not manipulate trades prices during news time.
There are lots of them who make all sorts of promises but few who keep them.
On a side note, I am little concerned that IS is changing there trading methodology. This will most definitely change their performance.
If a trader is use to trading one way, then has to trade using a different methodology, a learning curve is almost always certain.
Lets hope there won’t be any major problems because of this new issue.
Best wishes
Good point being pointed out here since if they’re trading methodology change, we wouldn’t know how will they be coping as well.
Dudes@IS, LOGMEIN sessions!
As I already feared long Term news trading simply has no future anymore due to ever changing market conditions and the fact too many traders are watching and playing the news.
When billions of traders try to fill their orders all at once, at one point in time, brokers simply are no longer able to fill all those orders. You can look at it, as an oversaturation of the current forexmarket.
In my opinion, news trading will become a short term trading strategy, while tech trading will become a long term trading strategy. IS has to adapt with the continously changing market conditions and change their trading strategies to a more technical trading approach.
A lot of newstraders who refuse to evolve with the change in the market will see their accounts being screwed over one day by their broker. Or they will have to change broker every couple of months to be able to keep trading the news.
IS is one of the few honest programs out there, if they cannot find a broker that alllows them to trade the news forever,then who can? Its time to move on and admit news trading on itself is no longer the way to go.
>> On a side note, I am little concerned that IS is changing there trading
>> methodology. This will most definitely change their performance.
Good point and if I would ‘play’ here, I would withdraw my money. Because all the DD done are now useless if they use a ‘new strategy’ or a modification. They could be honest like the pope, it cannot change the possible loss. Not to mention that they always could be a scam in the future, remember this is the hyip-scam-arena. Never believe in anything and be prepared to the ‘unpredictable’.
@makila:
The forex market is the trading base of banks. We little fishes are not able to move the market, even not at news times. But Hedge Fonds and banks are able to do it. The practise done by Internaxx (if its true) shows only that they like to have the control over all activities by traders on their platform. In control means “trading with or against them”. So with these actions Internaxx is not an interbank Level-II broker, but probably only a bucket shop.
Its too early to jump to conclusions and say they will definatily loose money from now on when they change trading strategies.
But you are correct we should be carefully watch their performance once they switched broker again. DD done on their news trading abilities indeed become useless, however they always say someone who is good, will be able to adapt no matter what strategy they use, someone who sucks, will simply sucks whatever they do… Other DD concerning their addresses and real ID’s are still usefull tough.
Sadly Their broker claims to be an interbank level-II broker so its very low of them to decide to act like a bucket shop. One has to wonder if interbanks are truly what they say they are. Looks like that is often not the case.
“If” this story is true at all. You know, I heard too many ’stories’ in this arena only to prepare a ‘jump off’ and run with investors money.
Yes, its good to be sceptical. You don’t survive in this arena by playing mister or misses “good believer”
I doubt the story is untrue. People who wanted to get out managed to withdraw without a problem. They also didnt really reported a loss.
IS has struggled really a lot in its 11.5 months lifespan but despite the fact the majority of people on the forums were always very sceptical about them, I have to give them credit they are almost lasting a year already and still currently paying all withdrawals. A lot of sites have come and go in a year time, Lyips included.
Future shall tell whether the current issues will be resolved, but as long as I can withdraw my money without any delays, I am not worried.