My disappointment after follow Signal Provider - page 2
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Hi petersgift,
thanks for your participate here,,, but always remember, do not give any link to any Signal Provider.... or maybe you can PM me first to ask a Signal Provider.
So, do you think a Signal Provider without any losses is really very good trader with great skill?
well I don't think so... Let's take a look here.
1
We can see there's 299 profit trades and no loss trade, very interesting isn't it ?..
but, let see its "Recovery Factor".. it's zero (0.00)... what does it mean? it mean this Signal still doesn't have proof to be able recover from loss.
Loss is part of trade, and every trader must be experience this once or twice...
a good trader/Signal Provider must have ability to recovered from loss.
2
"Risk by Equity" (Relative Drawdown) is so big.
it's already reach 56%,
About its trade history, all trade only sell EURUSD. and the last trade doesn't have TP - SL
This signal also doesn't pass a year trade, so we can not analyze the annual report here.
So, I think this kind of Signal is very risky and its a beginning of disaster.
I suggest to wait until its had some loss and see it if able to recover.
If able to recover, and success pass at least 12 months , then this signal can be considered to follow..... if not, just forget it and find other Signal Provider.
I agree with widhie75, and I saw how a great Signal provider broke his rules (he did not use stop loss only one time) and as a result lost all his and investors deposits. So rule #2 the DD should be less than 10-15%, and the risk should be less than 0.05% per trade. It is my view only.
But this type of signal is very rare, and if one account continue trade year after year, yearly 1 or 2 times account will be in risk or can fall in more d/d. This is the true. No one can give the 100% guarantee about forex, If can give the guarantee for all the year, he must reduce profit margin, as like fixed deposit scheme in commercial bank, yearly 10 to 15%.
Thanks.
But this type of signal is very rare, and if one account continue trade year after year, yearly 1 or 2 times account will be in risk or can fall in more d/d. This is the true. No one can give the 100% guarantee about forex, If can give the guarantee for all the year, he must reduce profit margin, as like fixed deposit scheme in commercial bank, yearly 10 to 15%.
Thanks.
Hi nirob,
all the best things/person are very few in number, this applies as a pyramid system. where getting to the top is getting smaller.
about your opinion, which certainly increased drawdown after many years of trading,,, I guess it could be true, and it may be not, it all depends on their trading techniques (Signal Providers).
DD (Drawdown) will definitely increase if the Signal Provider applying compounding.
Compounding will increasing risk if someday Signal Provider suffered loss orders ... this will loosing previous profit caused by 1 loss orders.
DD (Drawdown) will be fixed and will not be increased over the years, if the Signal Provider that apply good MM, TP-SL which always same in point, no compounding, and the number of lots that are used are always based on the initial deposit (not by balance / equity).
well, let me take a brief on how to select quality signal provider
first of all, he should be using real money account
secondly, check this DD, PF and RF. If the winning percent is 100%, please do yourself a favour and skip that signal.
3. he should make withdrawal. if you notice that there are deposit along the way then he is trying to make his DD look nice.
lastly, he should be having positive pips, else he is using some MM to win back his money
To check if a signal is legit you need to do some quick checks first:
1. Has the signal provider started the signal in a live account with a proper balance(over $1000)? If not then this shows that they do not have much confidence in their own signal so why should you.....Be very careful when following signal providers that are using cent accounts, On mt4 cent accounts are shown in cents not dollars- when the data is mapped over onto mql5 what is 10 dollars in a cent account appears as 1000 dollars(all figures are 100 times bigger). I have seen many dodgy signals and most use cent account brokers to gamble to get a high growth rate, if they lose no problem its only $10 loss per account. when they get one account with a high growth rate they offer it to subscribers- then its all downhill from there.
2. If the signal has a really high win% like some with 100%- ask yourself why is this guy not a billionaire yet- the traders not taking any losses- his first loss will be account liquidation/ wipeout (just check out the signals with 100% win rate- you will notice they show big balances but they mainly trade cent accounts- so divide their balance by 100 and thats why they dont care if they blowup the account)
3. If a signal growth is over 200% in less than 1 month- see numbers 1 and 2 above
It is possible to make 300-500% a year, but its done by making small amount regularly and compounding- 10% a month compounds to more than 300% a year
see my blog https://www.mql5.com/en/blogs/post/508679
Hello Shafiq, thanks for your nice comment. You mentioned 1 & 2 number points absolutely right. I saw some signal, the started with $10 or less and doing trade nicely and they are getting subscriber. Some provider invest small amount and taking a gambling risk, if luck shoot, he gain 100 or 200% profit in one month and then he start normal trade. That means this is a policy to encouraged subscriber. 10$ can make 100$ in one month and that's not a tough job, but 1000$ can't make 10,000$ in one month, its very rare. But I think, good strategy can make every month 10 to 15% profit easily with safety.
Thanks.
1. using real money account
2. check this DD, PF and RF. If the winning percent is 100%, please do yourself a favour and skip that signal.
3. he should make withdrawal. if you notice that there are deposit along the way then he is trying to make his DD look nice.
lastly, he should be having positive pips, else he is using some MM to win back his money
About winning 100%, it depends on situation.... If "Signal Provider" only trade 3 times per month (not really active or just trade on selective situation), I think winning 90%-100% still considerable.. In this case, the "DrawDown by Equity" must be low.
To check if a signal is legit you need to do some quick checks first:
1. Be very careful when following signal providers that are using cent accounts, On mt4 cent accounts are shown in cents not dollars
3. If a signal growth is over 200% in less than 1 month- see numbers 1 and 2 above
It is possible to make 300-500% a year, but its done by making small amount regularly and compounding- 10% a month compounds to more than 300% a year
see my blog https://www.mql5.com/en/blogs/post/508679
Cent account could be tricky especially for newbie follower (forex trader). Pay more carefully with this.
200% less than a month meaning gambling,,, this kind of trader maybe good for himself but very bad to follow. Maybe last trade he got 100% profit , but after we follow him, and he might have wrong calculation, then our money will be gone into zero only in single trade.
About componding, I didn't agree with compounding, because AFAIK compound in forex means trade increasing lot. So if after compound, then "Signal Provider" make mistake, then our previous profit will be replaced by loss by single trade.
So, I just believe trading with "same strict lot" should be better, after make 2 or 3 trades and profit, then "Signal Provider" make withdraw profit only. ... so it will not let "Signal Provider" do compounding technique.
Hello Shafiq, thanks for your nice comment. You mentioned 1 & 2 number points absolutely right. I saw some signal, the started with $10 or less and doing trade nicely and they are getting subscriber. Some provider invest small amount and taking a gambling risk, if luck shoot, he gain 100 or 200% profit in one month and then he start normal trade. That means this is a policy to encouraged subscriber. 10$ can make 100$ in one month and that's not a tough job, but 1000$ can't make 10,000$ in one month, its very rare. But I think, good strategy can make every month 10 to 15% profit easily with safety.
Thanks.