Originally Posted by nemesis2
It doesn't matter if they are expired or not - the dead ones have the same value as live ones
Well, if he is doing what he claims.
If he is not, then its anyone's guess as to the value of "expired" units.
I mean, if he makes only 0.66% daily ROL on your initial units:
425 * 0.0066 = 2.805 per day. Times 120 days. Equals $336.6.
Now. He has to pay you back 2% for 120 days. Minus the original amount.
425 * 0.02 = 8.5 * 120 = 1020 - 425 = $595.
So, if he takes your original $425, and adds the $336.6 interest, then subtracts the payout of $595, then he makes $166.6 on those units in that 6 month period.
Which is to say that he can do significantly WORSE than 2% per day in reality, in order to keep his head above water.
$595 - 425 = 170. 170/425 = 40% over 6 months. 0.33% per day is break even.
He says he's making 2%, but in order to stay in business he needs nowhere near this amount. Of course, that makes him a liar (again). But it makes the "plan" a lot more feasable.
My point is that the expired units may not have the same value. Because he has no other way to re-coup his losses other than claim a loss. If his "traders" underperform and only make 0.15% daily what happens? He only has $501.5 to pay the $595 he needs (in real units or withdrawals). Does he balance that from the "good times" above where he made 0.66% ($166.6 profit) and balance his books at $73.1? (this presumes you never get into a negative balance situation, because then it all falls appart in another 6 months if they underperform again)
I mean, I can see how it could
work, and could see it in January. I just think most indications are that he is NOT doing any of it. If he is, he only needs 40% returns in 6 months to break even. Everything above that is "gravy" to buy Bistros and Fashion shows with. This is why eventually I ask about what market he's doing it in. The logical conclusion from assuming it is legit leads to these sorts of questions. So that one knows when to withdraw because one can predict (if one knows) when a market/trade is not going to return 0.33% per day any more.