What do you think is the main reason most followers dont profit from a profitable signal provider or EA?

[boonchuai saetang]

Poor money management on subscriber side

[Simon Gniadkowski]

2day:
Poor money management on subscriber side

MM is within the realm of the Signal provider not the Subscriber, or am I wrong ?

[Rob Cain]

With not being a subscriber to any signals Tonny, I could only look at position size and stoploss, if you have $100 then it would be foolish to trade 1 lot, also if you have the same amount and trade the minimum size 0.01 and the stop loss 500 pips then you only have to work out the that 2 consecutive losses will leave you near, if not broke.

You have a valid point on the poll, any system could work 100% but poor connection problems will make a massive difference, suppose this has to be in the main when entering into this kind of service.   

[Sergey Golubev]

I do not have stats that "most followers dont profit from a profitable signal provider or EA". May be - most followers are having profit from profitable ... who knows ... :)

As to more serious reply - I think that "not evaluating systems long enough" and this is my case when I was subscriber: "Closing trades  themselves" - I mean that I closed the trades by myself (my mistake as a subscriber). 

[Tonny Obare]

newdigital:

I do not have stats that "most followers dont profit from a profitable signal provider or EA". May be - most followers are having profit from profitable ... who knows ... :)

As to more serious reply - I think that "not evaluating systems long enough" and this is my case when I was subscriber: "Closing trades  themselves" - I mean that I closed the trades by myself (my mistake as a subscriber). 

RaptorUK:
MM is within the realm of the Signal provider not the Subscriber, or am I wrong ?

Its mainly for the follower because while the SP might be using 0.1 lot on an account with $2000, the follower can deposit $200 and set to use 0.1 lot. This might lead to the follower hiting margin call while the SP still survives then he'll blame the signal.

The major ones on my experience as SP(unfortunately mql5 doesnt allow sp to monitor followers) is closing trades themselves when they see a little profit and also poor money management. While you close a trade at +400 pips youll discover a follower closed it long time ago at about +70 pips.

[Tonny Obare]

Another main one is "Not evaluating systems long enough" most subscribers dont stick with signals long enough but keep jumping from one to another i.e. someone subscribes to a signal and loses a few pips then he gets mad at the signal leaves with the losses and goes to another signal. Within a few days the first signal recovers the loses while the second one that had made a little profit also experiences some losing streak, subscriber gets mad and jumps to another one then he discovers that signal one has made quite some profits since he/she left and goes back to signal one just in time for another temporary losing streak.

[Sergey Golubev]

There is the other possible issue: I think - SP should provide a little more text in the description. Because as I understand - most subscribers are not programmers; besides many signals' descriptions are made for promotional purposes only which may be good for attraction of newbies, but not good to understand the system in general for example. 

[Tonny Obare]

newdigital:

There is the other possible issue: I think - SP should provide a little more text in the description. Because as I understand - most subscribers are not programmers; besides many signals' descriptions are made for promotional purposes only which may be good for attraction of newbies, but not good to understand the system in general for example. 

I dont think most subscribers subscribe to a signal because of a sweet description but because of attractive performance stats that most likely wont be repeated in their accounts if they dont use good money management, leave the signal providers to be the only ones to close trades or dont allow the system enough time to recover loses. In summary TRUST AND BELIEVE IN THE SYSTEM OR DONT SUBSCRIBE IN THE FIRST PLACE.

[Alain Verleyen]

tonny:

Its mainly for the follower because while the SP might be using 0.1 lot on an account with $2000, the follower can deposit $200 and set to use 0.1 lot. This might lead to the follower hiting margin call while the SP still survives then he'll blame the signal.

The major ones on my experience as SP(unfortunately mql5 doesnt allow sp to monitor followers) is closing trades themselves when they see a little profit and also poor money management. While you close a trade at +400 pips youll discover a follower closed it long time ago at about +70 pips.

• If provider has an account of $2000 and trade 0.1 lot, a subscriber with $200 deposit could at maximum have is 0.0095 (theorically, so 0.01 practically) : 0.1 * 200/2000 * 0.95. This is to the signal provider to specify minimum trading conditions to follow his signal with enough security. In my opinion, Money Management is mainly the responsability of signal provider. Secondarily, that of subscriber if he choose to risk his money on Forex. 

• How do you know that since MT5 does not allow provider to monitor followers and you know nothing about subscribers ?
  

[Tonny Obare]

Im speaking about the whole concept of signal providing and EAs in general not just mql5 signals. In most its the subscriber that manages their own lot size.