Thanks for reading today’s review of FractalAlerts and FractalGo.
The answer is pretty easy. I focus on the most absurd.
I maintain a master list of every known trading instructor online and continually monitor the landscape. I subscribe to marketing emails using hundreds of dummy email addresses.
Every one of these marketing emails are funneled into a single station. Each and every day, I wake up and examine the crap. It’s just like a gushing sewer of financial diarrhea.
The most absurd emails, I indicate with a’celebrity’ and maintain a running tally of all’stars’ The trading educators that collect the most’stars’ move to the’outhouse’. That particular spot where I dig out the kernels and balls of truly outrageous marketing. It’s dirty work.
For the past few months, I have been silently curating a truly outrageous series of marketing emails and promotional hype from a character named Rich Clifford.
Rich Clifford is the “founder and managing director” of a company named FractalAlerts. Actually, he is the captain of stupidity for several related companies: FractalGo, FractalAlerts, and FractalAlternative.
What this guy has been piping out is some of the most outrageous financial puffery that I have ever witnessed.
Rich Clifford of FractalGo: Financial Puffmaster
According to Rich Clifford, he has designed a trading system that:
- Has an 11-year track record. Delivering 28.3% per week. Every trade alert is documented. Every ruby red cent!
- The world’s biggest banks, hedge funds and institutional money managers use it.
- Over $1.1 billion dollars in being traded with this system right now.
- The system was used to break secret codes in World War II.
- The system can also be used to crack secret codes from the NSA.
Sounds pretty amazing, right? A system that won World War II!? And it delivers 28.3% per week!?
Geez, that would be 1,471% per year! In only 2 years, this system would have accumulated all of the known supply of money on planet earth! Trillions in profits.
Heck, the United States Treasury could solve the 30 trillion national debt in just a few trades with this super system — that also supposedly won WWII by revealing the secret plans of the Nazis and Japanese.
Who in the heck would be stupid enough to believe such outrageous nonsense? Apparently, there are plenty of suckers and fools willing to fork over thousands of dollars each year, for these supposed ‘super-secret’ trading signals.
Just have a look at this absolutely ridiculous promotional material…
Tracking Down the truth about Rich Clifford of Fractal Alerts
With such wonderful performance promises, I would anticipate that Rich Clifford would be more than prepared to share the names of those assumed”Banks, Hedge Funds, and Institutional Money Managers” which are supposedly profiting so greatly.
We achieved, with an alias email and asked REAL-TIME AUDITED brokerage statements.
Rich Clifford responded that”Yes, we have banks and brokerages tracking and using our programs, but access to that info is not something we could supply. They use it to their trading.”
So we are supposed to simply trust this character, and hope for the best? Nope. I needed to keep digging.
Next, I reached out to TradeStation.com, which is heavily promoting this ridiculousness. I asked the broker if he had any supporting documentation that supported these outrageous performance claims. He responded that, “you should be very careful” and “we see this sort of stuff all the time.” He concluded, “I recommend that you check with the National Futures Association and the Commodity Futures Trading Commission for any information on the person running this company.”
Contacting the National Futures Association regarding Rich Clifford
The NFA has a licensing directory, and it shows that Rich Clifford was previously registered as a principle, registered person–which is great.
A deeper search reveals that Rich Clifford has no reparations or regulator actions filed against him. That’s even better!
However, a deeper dig reveals that many of the companies he was registered, were charged with FRAUD.
- Lake Dow Capital: charged with fraud, embezzlement, and fined $24 million dollars. (2002-2004)
- American Derivatives: charged with fraud and fined $1 million dollars. (2004-2005)
- Magma Fund Advisors: cheating, fraud, deceiving customers. (2007-2008)
- Risk Capital Trading Group: fined $8.7 million dollars for fraud. (2001-2002)
- Leadership Financial Corp: charged with fraud, forced to pay reparations. (2003-2004)
Is this just some sort of weird coincidence? Look at this list of companies and affiliations–it absolutely makes me shutter. He appears to have moved around like a financial venereal disease, leaving behind an absolute train wreck for investors, in my opinion.
Yes, it is true that he personally has never been fined by the CFTC or the NFA, but this just looks crazy. It’s like he was mysteriously present for 5 separate bank robberies but never caught a charge.
Maybe he is just the world’s most unlucky person? Sure looks suspicious to me.
Digging deeper still…FractalAlerts, it’s not pretty.
During the month of November 2018, an anonymous user reached out, with quite the story to tell.
This person claimed to be a “Chicago Futures Broker” that maintained the actual trading records of many of these so-called financial trading guru’s. He anonymously sent over the actual, tracked trading records of FractalGo/FractalAlerts.
These are actual trading results. With a real trading account. Not the financial puffery and juiced hypotheticals that FractalAlerts sends out via email…as financial bait.
However, “Chicago Futures Broker” was absolutely disgusted with this marketing material. And so he proceeded to send me the following AUTHENTIC performance results, that was achieved by ACTUAL customers:
If you scrolled through this financial shit-show, you can obviously see that FractalAlerts did a wonderful job–of losing massive amounts of investor funds.
And to put this absolute horror show on full display, let’s look at the consolidated performance, based on actual trading results. Not the marketing puffery.
Fractal Alerts *Real Performance* 2016-2018
|Mini Russell Futures||-$4,616|
|2 Year Treasury Notes||-$3,147|
|10 Year Treasury Notes||-$4,802|
|30 Year Treasury Bonds||$1,392|
|Mini Dow Futures||-$7,701|
|Mini DAX Futures||-$12,556|
|EURO Stoxx 50||-$4,208|
|5 year Treasury Note||-$2,252|
As you can see, the actual net results for REAL INVESTORS was -$115,035 from 2016 through 2018.
This looks nothing like the marketing puffery. Where are the losses revealed in the marketing materials?
An omission of Relevant Facts
An honest vendor would simply own the crappy performance and proclaim, “every system goes through a drawdown.” Which is true. And quite frankly, this is the best way to handle these sorts of losses.
However, when confronted with the actual, real-time losses as reported by “Chicago Broker”…FractalAlerts responded that “Chicago Broker” was actually at fault for the massive losses. That “we realized the programs they had (Chicago Broker) were not correctly following our programs for quite a long time.”
Are you freaking kidding me? FractalAlerts actually had the audacity to blame the broker for the losses over a two year period! Amazing. I will leave it up to the audience as to who to believe.
Wrapping things up
There is nothing wrong with buying a Futures trading system from a vendor.
But there are a few things we have learned:
- Hypothetical performance is usually misleading.
- Check with the NFA to see if the vendor is licensed and registered as a (CTA) Commodity Trading Advisor.
- Check the employment history of the CTA. If a CTA has been employed by a string of companies charged with fraud, then you are probably about to be scammed.
- Ask for the brokerage account statements of the vendor. As you can see from this article, actual performance is much more revealing than marketing puffery.
- Show the marketing materials to a reputable Futures broker. Ask for his/her opinion of the marketing material.
- Use common sense. If someone claims 28.3% weekly returns on investment, it’s probably a fraud.
Thanks for reading. Would love to know your opinion regarding Fractal Alerts and the owner, Rich Clifford. Liberal expression is encouraged.