Curriculum·Senior·R410
Copy Trading, Vaults, and Agentic Execution
Mirror Trading International, charged 30 June 2022. The CFTC filed a civil enforcement action against Cornelius Johannes Steynberg and Mirror Trading International, alleging that from about May 2018 to March 2021 he ran an international multilevel marketing scheme soliciting bitcoin for a commodity pool, on the promise that a proprietary trading bot would trade foreign exchange on members' behalf.
Lesson 1 opens on
The Atlas Trading charges, December 2022
In December 2022 the SEC charged eight social media influencers, seven with securities fraud and an eighth, a podcast co-host, with aiding and abetting, and the Department of Justice indicted all eight in a parallel criminal case over a stock manipulation scheme run through Twitter and Discord.5 million Twitter followers. The charging documents allege that they presented themselves as successful traders, recommended particular stocks to their followers, and sold their own shares into the demand those promotions generated without disclosing their intent to sell.
The lessons
- R410-01The incentive structure, firstWrite down the leader's payoff function before looking at any performance figureabout 32 min · opens on The Atlas Trading charges, December 2022
- R410-02Leaderboard forensicsName the three biases that inflate any self-reported performance recordabout 33 min · opens on Malkiel and Saha on hedge fund databases, published 2005
- R410-03The mechanics that erode the copyName the five mechanical wedges between a leader's return and a follower'sabout 42 min · opens on The SEC best execution order, 17 December 2020, read as a wedge
- R410-04Vaults and delegated liquidityState what a depositor in a liquidity vault is actually sellingabout 33 min · opens on Hyperliquid's HLP vault and JELLY, March 2025, read as a deposit
- R410-05Agentic execution and AI tradingSeparate a claim about a method from evidence about a resultabout 33 min · opens on The SEC's AI washing orders against Delphia and Global Predictions, 18 March 2024
- R410-06The delegation decision frameworkRun the six questions that decide whether to delegate, in orderabout 33 min · opens on EmpiresX, charged 2022
Labs
R410-L
Due diligence on a live leader
For a supplied leader: reconstruct the full return series including drawdown, estimate the leader's own capital at risk, compute what your realized return would have been after latency, slippage and fees at your size, and write an accept or reject with the disqualifying answer named.