“Make Money Every Month!”

Feedback in today:

Hi. I very much enjoyed reading Trend Following. I’m currently trying to learn more about trading and aim to build an expertise in it. In the meantime, I have a question for you. Based on your gut/common sense / experience does the following trader sound legitimate to you? There is a trader who is via an “investment club” offering/giving monthly returns of around 7-11% to investors. He is trading foreign currencies (beyond that I don’t have more information). Investors get statements, however there is no other information shared with them on the accounts/financials of the operation. The operation is registered offshore in Panama (he was doing his trading from Jamaica, and I understand he is now living / working from the US. He recently bought a plane I hear). He seems to have opened up the ‘investment club’ in the last 2 or so years. As far as I know he is subject to no regulator (or rather has not subjected his operations to any, i.e. the ‘investment club’ and offshore arrangement were designed to avoid regulators). I find the steady consistent monthly returns a red flag (seems like a guaranteed return that is unlikely given the fluctuations a trading profit). Am I being arrogant/too cynical. In other words -based on the brief sketch I have given you – do you think this guy’s returns are legit? Regards, Monique

Christopher Cox might want to shine his flashlight here instead of making reputable hedge funds jump through more inane hoops.