EP10 - 90/90/90 Rule
90% of traders lose 90% of their money in 90 days.
Most brokerages think they only have a small window to make all of their money out of a customer.
I dont think they understand.
My platform is an engine of confusion, disguised as insight.
We send thousands of "trading signals" every day. Buy oil. Sell tech. Short the index. Go long on crypto.
The goal isn't to be right. It's to make them act.
Every time they take a position, we take the opposite.
Their loss isn't a byproduct of the market. It is my primary revenue stream.
But the 90/90/90 rule presented a bottleneck.
When a client's account hits zero, my revenue stream stops -- A dead golden goose lays no eggs.
So I introduced our most innovative feature -- The Loyalty Credit Line.
Some people might call it "letting them go into massive debt." I call it "extending their market participation runway."
When their balance hits zero, we don't close their account. We invest in them.
We give them the margin to keep trading. To keep losing.
Their debt becomes my highest-performing asset.
I haven't just created a brokerage. I've turned my customers to my passive income.
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Context
You are encouraged to watch videos of Anton Kriel's lecture on the anatomy of how old brokerage business model works.
It is still being done in casinos and online gambling.
Modern brokerages are much more different now, as they try to align interest with their customers, but their business model also requires a lot more inspection.
IBKR for example makes money off selling data, api. But they still profit off transaction costs, which means they have interest in getting customers to trade regularly.
HOOD has zero transaction fees, but they do resell trading activity and order book data to other brokerages of hedge funds, which means their partners get to front run their customers.
Before looking at profits, look for conflict of interest for those who are in charge of setting up the market place.
This rule also applies on places like App stores, Shopify partnered apps, social media, and so on.