How to find good signals

How to find good signals

1 March 2018, 12:23
Cristian Eriksson

I've gone through all MQL5 MT4 Signals today. And it's only one signal on the whole community that I consider being professionally managed(not talking about my own).

That's scary, isn't it?

Here are the 3 most important things to look for:

-A professionally managed signal does never have a draw-down greater than 20%. Why? Because controlled risk, is everything. If you have as much as 2% or even being extreme and having 3% risk, you'll have to have very many losses in a row to reach 20% draw-down(6 or 7). That can of course happen. But in 99% of the cases draw-down goes to more than 20% on mql5, it's because the risk is not being managed.

-An active professionally managed account does not have a loosing month. Unless you started trading at the end of a month or you trade very seldom.. Otherwise someone that is active and manage their risk, must do a very poor job to end in the negative after a month.

-Always look under the RISK tab. Look for MAE, maximum potential loss. This is plotted on the y axis, it will show if they keep their risk. If you see a lot of orders over 3% or over 5% of the account balance, you're copying a signal that could go to zero any day soon.

I'm not sure where the professional traders hang out, but it doesn't seem to be here, correct me if I'm wrong.

I'm not in any way discrediting MQL5, I think it's an excellent laymans trading platform, it's just rare to see well managed accounts.

And I would be careful to invest much money here.

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