New HIGHER LOW in place in equity curve. This system can recover losses quite quickly if you look at the previous 7 drawdown periods. Monthly returns VS max drawdown is what you must look at, in addition to my discussion below, which talks about how Andrew Lockwood educates Retail Investors / Signal Copiers to manage their trade copying investments.
I thought this video by Andrew Lockwood of ForexSignals is worth emphasizing, because he mentions some very important DO's and DONT's with making money with Forex Signal / Trade Copying. The biggest reminder and key issue is that Copiers must keep engaged, participate in the management of risk along the way (especially during drawdowns), and they must understand that there are down times for every strategy and also every trader.
He reiterates this on the video, and I sure wish retail investors kept up their end of the bargain, stopped blatantly blaming a trader, and accepted their part of the responsibility.
Trust in Signal Services comes from ...... shouldering this responsibility.... analysis and getting to know a trading system / trader. What's behind the scenes with a strategy, so when the bad times come, you can ride out the drawdown period and recover losses without giving up too soon. I think SC performance was good, but the strategy is clearly damaged now and not performing. FXStat and FXBlue do a great job of breaking down and analyzing a system's performance in many different perspectives:
How much of equity / profits need to disappear before investors / providers stop trading or investing in a certain system?
How does it perform in volatile periods?
What is the maximum acceptable drawdown?
What would you expect the maximum number of consecutive gainers / losers to be given the past performance?
What is the point when most losing trades have not recovered from a drawdown? Maximum Adverse Excursion (MAE/MFE)
Just emotionally, flippantly throwing out a signal service after 5 losing trades or a 2 month losing streak might be the worst thing to do.
And I actually find this happens more often than not. People getting jumpy after a 10 or 15% drawdown, and then at least with systems that can produce more significant gains in good times, the recovery will be lost if you divest.
This, of course, goes both ways, so sometimes it's important to divest at the right time when you think a strategy is starting to fail terminally.