Hi guys. I’m new to this forum but not to trading.
I have a question for all of you profitable traders.
Say that you have a system that is quite mechanical and a winning one. Aren’t you afraid that your broker will copy it/ steal it from you? After all brokers can see all of your trades and track record.
Are you taking any action to prevent the above from happening?
I’m thinking to start using more than one broker to place my trades and hide my strategy.
Have you ever thought about this and have any suggestions?
To be honest, that is something that has never occurred to me, but now that you pointed it out I can’t say that the thought bothers me particularly. Now, if they copied a strategy – mine or somebody else’s – and then tried selling as their own I’d be pretty miffed. Does this even happen though?
Your matter seems true with some brokers but I think I don’t care if someone stealing my strategy because I am also using that broker to earn money. Both are mutually benefits.
I completely agree with lexys here, they do need to copy your strategy as they earn from the commissions and spreads and even if they are, that will not bother me because what matters to me is how my strategy is working.
Practically this is not possible. Firstly, a broker is not run by INDIVIDUAL, its run by whole setup, so I can’t see how a broker is going SINGLE out anyone. Now, if you are making millions daily basis or something on that line with extremely low capital then I could believe in what you said and looks possible, but sorry I don’t think any half-decent company is going to be watchful for any ordinary trader, as they earn much more by doing nothing! Also, I will suggest you to keep in mind that people can copy your way, but they can’t copy your skills! So, if you are good enough you need to worry least about other things.
Yes it’s possible for brokers to copy your trading concept. There was a case which involved forex traders of major banks front running client trades. The investigation by authorities unravelled other findings which showed that brokers can see what their clients are doing. One of the findings was that these traders at major banks had chat rooms where they communicate. In one chat, one traders asked another traders at another bank how a client whom they had nicknamed name was making orders. The other trader replied back and said he had made an order of 0.8. u see why were they spying on this particular client? It’s becoz he was making lots of money and if he had a winning strategy, they could not hesitate to steal it!so u are right. Brokers can steal your concept. If u want to be on the safe side, just have multiple brokers, and split ur strategy among them.
How are you sure that the strategy you’re using is unique?
For example, when I started trading cryptos - I came up with quite a few techniques/strategies. Later on, when I started learning about FX trading - it turned out my strategies had already been known for some time by most experienced traders. You can say I re-invented the wheel and called it with a different name.
How can you be sure that the broker (or anyone else for that matter) had stolen it and started selling it?
Why would that matter?
The brokerage I used to work for had traders and brokerage agents working (full-time) on and testing all sorts of strategies, which they would implement in the company’s investment strategies (to make money for investors).
If you think your strategy is unique - check the internet. I’m sure you’ll find at the very least - similar ones out there.
That’s why you need to apply stealth techniques to your winning strategies to confuse your broker. It’s how basically your strategy should be protected, because yes if you win too many trades your account fall into radar of the broker.
IF YOU STAY IN THE GAME LONG ENOUGH… YOU WILL BECOME A PRO… MAYBE THEY WILL GIVE YOU SOME ACCOUNTS TO TRADE!..PERIOD XD[quote=“jessoprules, post:13, topic:82789, full:true”]
I hope I get good enough for a broker to copy my strategy! lol
[/quote]