Digital Profit trading bot generates $100,000s in losses
Digital Profit’s trading bots have caused investors massive losses.
Various examples cited by BehindMLM range from $45,220.51 to $99,371.92 in losses throughout August.
One Digital Profit affiliate account reveals a loss of $99,371.92, leaving $10,825.49 in the account:
A balance chart reveals the account recently held approximately $180,000 at one point.
Another account shows repeated EURAUD trades, generating accumulated losses of $45,220 between August 12th and August 19th.
Automated trading provided by Digital Profit only stopped when the account was completely drained of funds.
Another account was drained of $52,349, leaving just $755.98 in the account:
The problem appears to lie with Digital Profit’s bot continuing to open EURAUD trading positions. Every time it incurred a loss a new position was opened, until the bot was either shut off or the account was drained of funds.
Total losses as a result of Digital Profit’s trading bot is unknown.
In an email sent out to affiliates, Digital Profit blamed losses on a “rare black swan market condition”.
Yesterday, there was an unfortunate “Black Swan” event day for the EURAUD.
All technical indicators showed that the pair should have had major corrections during the time in which it continued to skyrocket straight up.
For those unfamiliar with the term, a black swan
is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.
I had a poke around and didn’t see any coverage of a forex black swan event in August. These losses appear localized to Digital Profit’s trading bot.
Digital Profit’s email continues;
While we don’t anticipate this condition repeating anytime soon, it provides an opportunity to remind everyone that trading involves risks.
Digital Profit’s August losses were caused by their Freedom bot.
The company claims the developers of its Freedom bot
had a documented track record of success for 3 straight years, but unfortunately it was not able to sustain through the unprecedented events in the market yesterday.
Due to these circumstances, we will be suspending Freedom as a provider on the Echo trade platform.
In violation of securities law, Digital Profit fails to provide consumers with audited financial reports to verify its claimed track record.
Nor is Digital Profit or principals Travis Bott or Jeremy Reynolds registered with financial regulators in any jurisdiction.
BehindMLM reviewed Digital Profit last month. The company only launched recently, sometime after February 2021.
Shortly after our review was published, a Digital Profit affiliate claimed in the comments;
The products ABSOLUTLY work. I just hooked the BOT up and made about 11% my 1st month. The FREEDOM BOT has an average month return of about 7%.
They are so confidant in their products that they offer a 30 day 100% money back guarantee.
Whether Digital Profit is reimbursing new affiliates who signed up and lost money is unclear.