How "Gurus" Fake Their Returns

Understanding common tactics used to mislead investors

Cherry-Picking Winners

Many self-proclaimed investment gurus only showcase their winning trades while conveniently hiding or deleting their losses. This creates a false impression of consistent profitability.

Backdated Trades

Some creators claim they made trades at optimal entry points after the fact, presenting hypothetical returns as if they were real trades executed in real-time.

Unrealistic Position Sizing

Claiming massive percentage gains on small positions while ignoring the overall portfolio impact. A 100% gain on 1% of your portfolio is only a 1% total return.

Ignoring Risk and Drawdowns

Focusing only on returns without discussing the risk taken, maximum drawdowns, or volatility. High returns mean nothing if they come with catastrophic losses.

How Alpha Audit Solves This
  • All trades are timestamped and cannot be backdated
  • Both winning and losing trades are tracked equally
  • Performance metrics include all trades, not just winners
  • Transparent verification process for all submissions