Lets Expose the Scam and Scammers Trying to Ruin Futures PropFirms

Summary

In this video, Mighty Ox addresses the recent ban on treasury trading by Apex, attributing it to scammers exploiting the system for profit. The host outlines the scam, discusses Apex's heavy-handed response and its PR missteps, and speculates on the future of prop trading firms, suggesting stricter policies and a move towards more live trading. The video also calls out a specific individual, 'Grande,' as a key figure in the scam, urging the community to be vigilant and not to emulate such fraudulent practices.

Takeaways

• 🚩 Apex trading platform has banned the trading of all treasury bonds due to scamming activities.
• 💡 The ban was a response to a scam known as 'treasury sim manipulation', which exploits the simulated trading environment.
• 📢 Apex's communication regarding the ban was poor, with no mass email or notification sent to users, leading to negative public relations.
• 👤 Scammers are targeting prop trading firms that allow many accounts and rarely transition traders to live markets.
• 💼 The scammers aim to avoid live trading and manipulate simulated fills for illegitimate gains.
• 🔍 The speaker will notify other trading firms that might be vulnerable to this scam to protect the trading community.
• 🚫 The actions of scammers have led to increased scrutiny and changes in the prop trading industry, including stricter live trading requirements.
• 🤔 The speaker speculates that the industry may shift towards a model that offers fewer simulated accounts and quicker transitions to live trading.
• 👥 A specific scammer, referred to as 'Grande', is called out for his involvement in the manipulation and is believed to be part of a larger group causing issues.
• 🔑 The speaker advises against trying to learn the scam techniques to exploit other firms, emphasizing the negative impact on the trading community.

Q & A

Why did Apex ban trading of certain bonds?

Apex banned trading of certain bonds due to scammers exploiting a glitch in the simulated trading environment to make illegitimate gains.

What did the scammers exploit to make gains?

The scammers exploited a glitch that allowed trades to be filled at off-market prices or prices that did not exist at the time, resulting in significant illegitimate profits.

How did the scammers operate?

Scammers operated by opening multiple accounts, manipulating simulated fills during illiquid times, and trading for other people without their knowledge.

What was the role of the individual named 'Grande' in the scam?

Grande is considered one of the ringleaders of the scam. He was involved in manipulating simulated fills and trying to avoid going live to continue his fraudulent activities.

Why did Apex start requiring video requests from traders?

Apex started requiring video requests to ensure that the traders were genuine and not scammers manipulating accounts, as part of their response to the scam.

What was the impact of the scam on legitimate traders?

The scam led to Apex banning certain types of bond trading, which negatively impacted legitimate traders who relied on those instruments for their trading strategies.

What changes does the speaker anticipate in the prop trading industry due to these events?

The speaker anticipates that prop trading firms will become stricter, with fewer firms offering multiple simulated accounts and more moving towards a trade-day or earn-trade model.

What was the speaker's opinion on Apex's handling of the situation?

The speaker criticized Apex for their heavy-handed and poorly communicated approach to the situation, which led to bad PR and potential harm to their reputation.

Why did other firms besides Apex also ban or restrict certain types of trading?

Other firms may have banned or restricted certain types of trading to prevent similar scams from happening on their platforms and to protect their own reputations.

What actions did the speaker take to address the scam issue?

The speaker outed one of the scammers, notified other prop trading firms about the issue, and encouraged the community to be vigilant against scammers to prevent further damage.

What does the speaker suggest for the future of traders affected by the ban on bonds?

The speaker suggests that affected traders may need to adapt their strategies or find other firms that still allow the trading of bonds, while also warning against trying to exploit systems.