Signal/EA evaluation

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managertop40
132
managertop40  

Hello,

I need to choose an EA or Signal from those in the market to make it apply to a real account on a VPS.

I need to understand some parameters to choose what is the best one for me.

I read carefully this page, https://www.mql5.com/en/articles/1492 but I'm still not convinced about some parameters.

What is the profit factor and how is it calculated mathematically?

What is Algo trading, and why some reports a % for it?

For a signal page description, I've found two page tabs one like Statistics, and one like Risk. Both of them have value for 'Maximal consecutive profit', and the same for loss. The question is why sometimes they are different in Statistics and Risk page?

Which other parameters do you suggest me to considerate to make the best evaluation of the signal/EA?

If I wanted to invest 5000€ of real money, considered the rent cost for VPS and signal/EA, which parameters are clearly showing me that it is not suitable for my amount (dimension of lots, no. of trades per months, no. of trades contemporary opened)?

Thanks for your help. 

Eleni Anna Branou
Moderator
7070
Eleni Anna Branou  
managertop40:

Hello,

I need to choose an EA or Signal from those in the market to make it apply to a real account on a VPS station.

I need to understand some parameters to choose what is the best one for me.

I read carefully this page, https://www.mql5.com/en/articles/1492 but I'm still not convinced about some parameters.

What is the profit factor and how is it calculated mathematically?

What is Algo trading, and why some reports a % for it?

For a signal page description, I've found two page tabs one like Statistics, and one like Risk. Both of them have value for 'Maximal consecutive profit', and the same for loss. The question is why sometimes they are different in Statistics and Risk page?

Which other parameters do you suggest me to considerate to make the best evaluation of the signal/EA?

If I wanted to invest 5000€ of real money, considered the rent cost for VPS and signal/EA, which parameters are clearly showing me that it is not suitable for my amount (dimension of lots, no. of trades per months, no. of trades contemporary opened)?

Thanks for your help. 

Profit factor is how many times the profits are more than the losses.

Algo trading is automated trading and the % means the percentage of the total trades made by algo trading/expert advisors.

The difference in maximal consecutive profit, between statistics and risk page has to do with the monitoring time the signal has been connected to the MQL5 signal database. The statistics page refer to the history of the signal from the very beginning, while the risk page only to the period that the signal was connected to the MQL5 signal database.

Other factors you should probably consider are the drawdown and the deposits the signal provider has made in dangerous times, when the drawdown value was high, because that mean that a deposit was needed in order to save a signal from margin call.

With that kind of money you should be OK following a signal with a decent monthly growth.

managertop40
132
managertop40  
Eleni Anna Branou:

Profit factor is how many times the profits are more than the losses.

Algo trading is automated trading and the % means the percentage of the total trades made by algo trading/expert advisors.

The difference in maximal consecutive profit, between statistics and risk page has to do with the monitoring time the signal has been connected to the MQL5 signal database. The statistics page refer to the history of the signal from the very beginning, while the risk page only to the period that the signal was connected to the MQL5 signal database.

Other factors you should probably consider are the drawdown and the deposits the signal provider has made in dangerous times, when the drawdown value was high, because that mean that a deposit was needed in order to save a signal from margin call.

With that kind of money you should be OK following a signal with a decent monthly growth.

Thanks for your suggestions, but I'd like to know something more.

About 'statistics' and 'risk' page, what do you mean for MQL5 signal database? How long does data belong to this database? So how recently is statistics about that signal? So on the 'Statistics' page will I find the statistical data since the beginning?


Considering my goal (investing 5000€, +cost of VPS rent, +cost of signal)how much should be the profit factor, % of growth, ecc...?


Thanks again

Eleni Anna Branou
Moderator
7070
Eleni Anna Branou  
managertop40:

Thanks for your suggestions, but I'd like to know something more.

About 'statistics' and 'risk' page, what do you mean for MQL5 signal database? How long does data belong to this database? So how recently is statistics about that signal? So on the 'Statistics' page will I find the statistical data since the beginning?


Considering my goal (investing 5000€, +cost of VPS rent, +cost of signal)how much should be the profit factor, % of growth, ecc...?


Thanks again

Some signals are not connected with MQL5.com from the very beginning.

When they are connected their trading history (trades) are retrieved alright, but other aspects as the maximum drawdown of the account before it was monitored it can't be found.

So here you are, if you check the equity graph (last on first page of a signal), you will see the date, when this signal was first connected to MQL5.com.

Rafael Grecco
452
Rafael Grecco  
managertop40:

Thanks for your suggestions, but I'd like to know something more.

About 'statistics' and 'risk' page, what do you mean for MQL5 signal database? How long does data belong to this database? So how recently is statistics about that signal? So on the 'Statistics' page will I find the statistical data since the beginning?


Considering my goal (investing 5000€, +cost of VPS rent, +cost of signal)how much should be the profit factor, % of growth, ecc...?


Thanks again

As Eleni explained, you should only trust information on signals that has it's history connected to MQL5 from the beginning.

For example, there are signals that have 1000's % of growth, but 90% of it was before being connected to MQL5. That means you can't know how that was achieved, how was the DD, if there was several deposits/withdraws from the account to make those numbers, etc.

If you invest 5000 euros, a growth of 5% a month would probably cover all your costs (vps and signal subscription).

Remember that when subscribing to a signal, your trades will the based on the % of the balance of the signal. For example, if you subscribe to a signal that has 1000 euros and trades 0.01 lots, your account will trade 0.05 lots.

Good luck!

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