Why signals dont bring profits consistently to traders for a long time?
For my years of stay in this forum and monitored every profitable signals that popped up I observed one common thing, that all signals are bound to fail in the long run, why?
There are reasons about it, all signals is either using the following approaches: grid trading,martingale,small TP with huge SL or no SL at all, using huge lot size and many more. These kind of approaches are detrimental to one's trading in the long run.I believe that the only way for a particular strategy to survive and be consistently profitable in years to come is by observing good RR in all of your trading activities at all times. It may sounds simple but it is hard because of the psychological aspect will become a hindrance, most traders hates to loss and that cutting losses is the last thing in their mind, they hold on in the belief that the market will bounce back and that a losing trade will always recover and so it is okay to hold on to a losing trade, at some point this maybe true but it is not happening all the time, market movement is always random, holding on in a losing trade will put your capital in greater risk.
One important lesson I learned from the market after years of trading is that when you create a trading strategy it must be based on a good RR probably no lower than 1:1 the higher the better and you must stick to it. Of course the overall performance of your strategy is also crucial to your success, implementing a good RR does not mean a thing if you have a mediocre trading strategy, but at least you can control your risk.
Now if you dont have the time to create your own strategy then just pick a signal that does follow good RR ratio and dont uses high risk trading approaches that are mentioned above. Unfortunately most subscribers blindly follow a signal just because they are making huge profits for a couple of months without even analyzing the strategy that is in use, only to whine later how bad the signal is. If this is your case dont blame the signal provider blame yourself because you should have known it before you subscribe.
No matter how good the performance of a particular signal is, if it is not following a good RR in his strategy it is destined to fail, the only question is when? because in reality market movement is random and it cannot be on your side all the time, and so if you are not practicing good RR in your strategy your trading account will get wiped out along the way.
Now you may say why it is that there are no such profitable signal exists in MQL5 that implements good RR in all of his trading activities? that's a good question and perhaps it requires a lengthy discussion,because I myself is still trying to achieved such feat until now.
The answer is between your lines.
Signals that have a long history in MQL5.com do exist but they are not the popular ones, because they have positive and negative months too and they don't go for 100-200% per month, but for a more logical outcome that doesn't attract subscribers.
Most if not all MQL5 members want to be rich overnight and they tend to follow these 'extra-terrestrial' signals that go to the sky for a couple of months and then they get destroyed in 1 day.
No signal or strategy can make triple digit profits every month, for more than a few months, so there's your answer, most of MQL5 signals that have that objective are failing soon.
The answer is between your lines.
Signals that have a long history in MQL5.com do exist but they are not the popular ones, because they have positive and negative months too and they don't go for 100-200% per month, but for a more logical outcome that doesn't attract subscribers.
Most if not all MQL5 members want to be rich overnight and they tend to follow these 'extra-terrestrial' signals that go to the sky for a couple of months and then they get destroyed in 1 day.
No signal or strategy can make triple digit profits every month, for more than a few months, so there's your answer, most of MQL5 signals that have that objective are failing soon.
It maybe true, but I wish you could point a particular signal at MQL5 and I will be happy to analyze a particular strategy.
It maybe true, but I wish you could point a particular signal at MQL5 and I will be happy to analyze a particular strategy.
We are not allowed to discuss or suggest specific signals in this forum, so we can only take part to a general exchange of opinions.
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For my years of stay in this forum and monitored every profitable signals that popped up I observed one common thing, that all signals are bound to fail in the long run, why?
There are reasons about it, all signals is either using the following approaches: grid trading,martingale,small TP with huge SL or no SL at all, using huge lot size and many more. These kind of approaches are detrimental to one's trading in the long run.I believe that the only way for a particular strategy to survive and be consistently profitable in years to come is by observing good RR in all of your trading activities at all times. It may sounds simple but it is hard because of the psychological aspect will become a hindrance, most traders hates to loss and that cutting losses is the last thing in their mind, they hold on in the belief that the market will bounce back and that a losing trade will always recover and so it is okay to hold on to a losing trade, at some point this maybe true but it is not happening all the time, market movement is always random, holding on in a losing trade will put your capital in greater risk.
One important lesson I learned from the market after years of trading is that when you create a trading strategy it must be based on a good RR probably no lower than 1:1 the higher the better and you must stick to it. Of course the overall performance of your strategy is also crucial to your success, implementing a good RR does not mean a thing if you have a mediocre trading strategy, but at least you can control your risk.
Now if you dont have the time to create your own strategy then just pick a signal that does follow good RR ratio and dont uses high risk trading approaches that are mentioned above. Unfortunately most subscribers blindly follow a signal just because they are making huge profits for a couple of months without even analyzing the strategy that is in use, only to whine later how bad the signal is. If this is your case dont blame the signal provider blame yourself because you should have known it before you subscribe.
No matter how good the performance of a particular signal is, if it is not following a good RR in his strategy it is destined to fail, the only question is when? because in reality market movement is random and it cannot be on your side all the time, and so if you are not practicing good RR in your strategy your trading account will get wiped out along the way.
Now you may say why it is that there are no such profitable signal exists in MQL5 that implements good RR in all of his trading activities? that's a good question and perhaps it requires a lengthy discussion,because I myself is still trying to achieved such feat until now.