question about "Signal's Performances"

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markBoil
99
markBoil  

Hello guys, i'm interested to subscribe in some signals here but i have a question on their performances.

Actually i manage to see that such extraordinary performances (such as 1000%, 2000%, 3000%, 4000% on some signals) are accumulated even in few years (2-3 in average)

When i analyze the trades i'm surprise to see that some signals have such enormous performances even with a very small lotsize in comparison to their capital (some signals are trading with a starting lotsize of 0.01 or so)

I was wondering how it is possible to see that enormous gain% with those small lotsize? Maybe the leverage/cent account have some influence on this?

And also: why I'm able to see a lot of bad reviews even on signals that looks awesome in gain% terms?

P.S. i'm quite newbie in trading

Eleni Anna Branou
Moderator
6563
Eleni Anna Branou  

Hello markBoil,

Its extraordinary how a decent monthly growth of 10-30% if it is accumulated over a period of 1-2 years, can give the enormous results that you see in some signals.

Its not a trick, you can check it out in this simple site:

http://www.calculator.net/interest-calculator.html?cstartingprinciple=100&cannualaddition=0&cmonthlyaddition=0&cadditionat1=beginning&cinterestrate=20&ccompound=annually&cyears=24&ctaxtrate=0&cinflationrate=0&printit=0&x=70&y=13

This is an example of 20% monthly profit over a period of 24 months, for a starting capital of 100 units. (The system doesn't have months, so the instead of years, read months)

Eleanna 

markBoil
99
markBoil  
Eleni Anna Branou:

Hello markBoil,

Its extraordinary how a decent monthly growth of 10-30% if it is accumulated over a period of 1-2 years, can give the enormous results that you see in some signals.

Its not a trick, you can check it out in this simple site:

http://www.calculator.net/interest-calculator.html?cstartingprinciple=100&cannualaddition=0&cmonthlyaddition=0&cadditionat1=beginning&cinterestrate=20&ccompound=annually&cyears=24&ctaxtrate=0&cinflationrate=0&printit=0&x=70&y=13

This is an example of 20% monthly profit over a period of 24 months, for a starting capital of 100 units. (The system doesn't have months, so the instead of years, read months)

Eleanna 

Thanks for your post.

I don't believe that a growth of 20-30% per month is sustainable over a long period. In my opinion this is too much dangerous on the long term (i talked with some friends that are working at london stock exange)

However the question was a different one; for example on a 2000$ capital even if you open hundred trades per week, how is possible to growth 30% in a month if most of trades show a 0.01 lotsize maybe with small increment due martingale strategy? Even more if you consider on that small lotsize most of the trades are closed within a 4-6 pips of total profit....I was thinking that there should be some tricks, such as the leverage influence or the type of the account (cent account)

Thanks anyway-

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