Trade copier software can be one of the best ways to get started in Forex as an amateur, because it gives you direct access to the trading of professional Forex traders. This can help you diversify your investment accounts, so the trading process is not entirely up to you.
I have wasted a lot of time on this in the past and I hope that you can benefit from my experience. On the surface, sites like Myfxbook seem like the best way for newbies to tell which signal providers, educators or robots are the best.
However, when you look at the “Strategy” section of the website, you will find lots of fantastic results. Most of them seem too good to be true.
You think to yourself…is that for real? Some of the results really are amazing. Are they faked?
There are also various sites specialize in Forex trader reviews. Most of these sites talk about traders in their forums. These sites can also show equally fantastic results.
So what should you believe?
While you can never be 100% sure that all results are true, there are certainly a few ways that you can uncover legitimate traders, with a high degree of certainty.
In this post, we will take a closer look at how to spot fake Forex trading results.
First, let’s take a look at the accounts on MyFxBook. There are some accounts that look like this.
The returns are amazing and it seems too good to be true. So what should you look for?
First, find out if the results are verified. The track record has to be verified and there must be a green check next to it.
Here is an example of an unverified account. The trading privileges do not need to be verified on MyFxBook.
Another thing that you should look at is the length of the track record. Obviously, they don’t have to have a 10 year record, but the longer, the better.
Many fake accounts will only have a track record of a few months.
Of course, past performance does not guarantee future results. But it does help you understand what you are getting into.
Look at the Website
Next, take a look at the trader or developer website, if they have one. If the site looks bad or there are a lot of misspellings on the site, that is not a good sign.
There are certain features of a website that can tip you off. Some sites end up using a free Blogger blog. Do you still want to give your hard-earned cash to a trader that can’t afford $5 per month to host their own site?
There are some cases when a legit trader has a bad website. But if it is obvious that they have not put the time and effort to create a real website, then they are probably equally undisciplined about their trading or they are making up their results.
Sometimes, the links on a site can be affiliate links. The reviewer, in this case, gets paid for referring a client to an agent. This is legitimate, but beware.
If it is obvious that a site is only in it for the commissions, you have to ask yourself if they really believe in the trader, or if they are just trying to make a quick buck. Are they actually using the service?
Some sites are blatant scams and might keep you wondering why anyone would fall for it. But people do. Scam sites can use videos in their marketing and they can be very convincing.
One deception is built around the idea of the language barrier between countries. They think they can pull off a “lost in translation” on their clients.
This usually centers around using video footage in one language and subtitles in the target language. Sometimes that video isn’t even trading related.
However, the video looks official and many times, comes from a news cast or a similarly semi-credible source. Here is an example from the Adrian Shiroma scam.
If you just watch the video for a few minutes, you will see that it is a scam. In this video, she never actually says “Adrian Shiroma,” even though it is in the subtitles.
Search the Web for Negative Reviews
You should be able to take a keen look at the brokers that a trader is using. Some of these traders may make things to be legit. A standard check I prefer is to search for the name of the broker with the word “sucks” if you Google the brokers review, for example, and finds nothing, not even a negative review, it should give you enough sign that the broker is fake.
Obtaining results for the search doesn’t have to mean that the broker is bad. Even the best in the game will have negative reviews.
The sad fact about trading is that there will always be haters. Most people are not successful traders and they want to blame anything and everything else, besides themselves.
But sites like Forex Peace Army, can give you a good idea of if a trader or educator is worth investing in.
Incomplete Sign-Up Process
If you try to sign up for a service, are you able to get to the end or does it send you to some weird page or give you an error? Sure, there can be momentary technical outages, but if you have these issues all the time, this can be a giant red flag.
A real broker should be able to get you started with a live account and a trading platform. A lot of fake trading sites will not give you the opportunity to download the broker’s proprietary platform.
It can be really easy to get excited about the Forex market. For people who don’t want to trade, having a trader do it for you can be very attractive. But there are a lot of risks involved with finding a solid trader.
To get started with our verified Forex signals and managed accounts, check out this page.
I hope you’ve learned a few things from this post. It should help you to spot a scam in the future.
We typically save posts about our performance for a big recap at the end of the month or beginning of the following month, but this calls for an exception… Our Theta Trader managed account program returned a whopping 10% so far this week. Taking into account gains earlier in the month that means Theta Trader is well over a 20% gain for the month, and a tremendous 181.94% for 2015 so far.
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We firmly believe this program is only going to continue to achieve outstanding results and have decided to extend our promotional offering of waiving the typical $200 one-time technology integration fee, reducing the minimum account size to $5,000 USD (Theta Trader typically requires clients to open with a $25,000 minimum deposit), and keeping the performance fee at a flat 25%, instead of the 30% performance fee typically charged for clients who deposit less than $300,00. This is a great time to get into the Theta Trader program if you were considering doing so.
Had you invested $10,000 USD with Theta Trader at the beginning of the year you would have a balance of $28,194 before fees today.
Getting started with the Theta Trader program is a simple 3 step process:
There are many aspects to a building a successful strategy, with most of the attention focused on finding accurate entry signals. While knowing when to enter a trade is an important part, it is far from the only area where you should you be spending your time and energy.
Optimizing your position size, knowing when to stop and start trading, as well as following a more rigorous approach when selecting indicators are three areas that do not usually get a lot of attention but can have a huge impact on the performance your strategy.
In this series of posts we’ll show how you can use machine learning to improve all three of these areas. Part 1, will show you how to determine your position size using a Random Forest algorithm and figure out when to turn off your strategy using a Hidden Markov Model. Part 2 will cover selecting your indicators using a wrapper method and a Support Vector Machine.
So let’s get started!
Determining Your Position Size
This article assumes you already have entry signals for a strategy. You can download the historical data set from my strategy here to play around with it yourself. If you are looking for a new strategy, you can quickly build one in TRAIDE and copy the trades from the trade table on the Dashboard to a csv. Just make sure you use the same format as the csv above.
Position sizing is an important, often overlooked aspect of trading. Many traders look at position sizing as a way to decrease downside risk without seeing it as a tool to increase performance. While it is important not to risk too much of your total account on each trade (usually around 2%), there are far better ways than just using a fixed lot, or fixed percentage, position size for each trade.
One logical train of thought would be to enter a larger position when your trade has a higher probability of success and a smaller position when you are less sure about the trade. Using a random forest, a popular machine-learning algorithm, we can estimate the probability of success for each trade and size accordingly (never risking more than 2% per trade of course).
I went into greater detail on using a random forest to build a Bollinger Band-based strategy for the GBP/USD and we can use a similar approach to help us determine the optimal position size.
Given my data set of historical trades (you can download it here to play around with it yourself), first we classify each trade into three categories based on its return:
- Winning trades
- Returns >= 10 pips
- Ideally we want to enter into larger positions for these trades
- Neutral trades
- Returns < 10 pips and Returns >= -10 pips
- We can use this as our default position size
- Losing trades
- Returns < -10 pips
- We want to enter into smaller positions for these trades
Next we have to decide what information we want to use to make our decision, otherwise known as the inputs to the model. This is an area where you should use your experience with your own strategy to make a decision. A couple different options:
- Current market conditions
- Inputs: Volatility, trending or sideways market, etc.
- This is appropriate if your strategy tends to perform well in certain market conditions
- Recent performance
- Inputs: the returns of the last “n” trades
- If you notice your strategy goes through periods when it performs well and periods when it underperforms, this is probably the way you want to go.
- External factors
- Inputs: major news announcements, holidays, Mondays/Fridays, etc.
- While some traders will avoid trading around these “external factors”, testing to see if this is justified is usually a good idea.
Let’s try using the returns of the last 3 trades to determine the position size of our next trade (you can download the R code here). We will double our position size if the model predicts the next trade will be a “Winning trade” (defined as a return over 10 pips) and cut it in half if it predicts a “Losing trade” (a return of less than -10 pips) and keep the default position size for all “Neutral trades” (returns less than 10 pips but greater than -10 pips). We train the model on the first two thirds of the data set (our historical trades) and then test it on the final third of the trades, our out-of-sample test:
Wow! We were able to get a 20% increase in total return and increase our return per trade from 2.8 pips to over 3.3 pips just by using this fairly basic model. Not bad at all!
Turning Off/On Your Strategy
Knowing when to start and stop trading can mean the difference between success and failure. However, determining when to “turn off” your strategy is a non-trivial task. Once again we can use a popular machine-learning algorithm, known as a Hidden Markov Model (HMM), to determine market regimes where our strategy underperforms and we should stop trading. (Check out my post on using an HMM to identify market conditions).
First we have to decide what we want to use to identify the different “regimes” of our strategy’s performance. We are asking ourselves “what factors will tell us that we should stop trading our strategy?”
Let’s try using two calculations based off of a 10-period simple moving average (SMA) of our equity curve. We are going to look at both the rate of change over 5-periods and the distance between the current balance of the equity curve and the SMA line. The rate of change (ROC) should tell us if our equity curve is in a general downtrend and the distance between the lines should give us a much more sensitive measure of how the strategy is performing.
Now, based on these two inputs, we will us a 2-state HMM model to decide when we should “turn off” our strategy (you can find the R code here):
We will then look at the performance of the strategy if we stop trading whenever the HMM model classifies the strategy in “Regime 2” (be sure that you shift the HMM’s classification back one data point so you are only using data that would actually be available):
Once again, we see a significant increase in performance! We were able to see a 13% increase in return despite decreasing our number of trades from 1259 to 726, almost doubling our return per trade from 2.1 pips to 4.2 pips, and increase our accuracy from 60% to 67%!
Finally, let’s see what happens when we combine our random forest position sizing model with the HMM regime shifting model on our out-of-sample data set:
By both adjusting our position size based on a random forest model and halting trading when conditions were unfavorable we were able to significantly increase the performance of our strategy. The final return was 44% higher despite having 133 less trades, leading to our return per trading jumping from 2.7 pips to 5.7 pips and the accuracy increasing from 64% to 70%.
Now that you know how determine your position size and when to start and stop trading, we’ll next go over how to choose a robust set of indicators to use in your strategy.
As we saw here, leveraging machine learning can greatly increase the performance of your strategy. At Inovance, we make it easy to use machine-learning algorithms as a method to uncover patterns in the indicators you use to trade.
Get your free premium account from our partners, BBFX, here and take your trading to the next level!
September 2015 netted our signals and managed account programs a combined 11.87%. The biggest gain was in our managed account program which saw a 21.03% increase over the course of the month. Keep in mind the S&P 500 ended the month -2.64%.
Here’s the full breakdown
Theta Trader: +21.03%
Lambda Ascent: +.16%
Omega Genesis: -1.32%
Omicron Growth: -8.00%
Our managed program, Theta Trader has had not only a tremendous September, but a tremendous 2015, having netted over 98% for the year!
Here’s some quick math – if you had invested just $10,000 into Back Bay Markets’ Theta Trader program in the beginning of this year, you would’ve made $13,593.20 (before fees) and had a balance today of $23,593.20!
For a limited time the $200 activation fee that is typically charged for all new accounts is being WAIVED. This is a great time to get into the Theta Trader program.
(Past results are not necessarily indicative of future results. Read our full risk disclosure)[vcex_divider style=”solid” icon_color=”#000000″ icon_size=”14px” margin_top=”20px” margin_bottom=”20px”]
Looking at the FX market for September 2015 we saw a number of big moves and a few surprises. Across the globe, markets have been in turmoil since the Chinese surprise devaluation of the Yuan earlier in August. Emerging market currencies, US stocks, European stocks, and commodities have all seen losses throughout the past month.
The big question of when (and at this point, if!) the US Federal Reserve will increase interest rates remained unanswered as Yellen and the Fed decided again to leave rates unchanged despite a number of financial thinktanks speculating September would be the month the Fed finally raised rates. This decision pushed the S&P500 down during the first week following the announcement. On the other hand, the yield on the 10-year Treasury Notes jumped on the news, closing higher at 2.166%. Only time will tell if the Fed decides to raise rates in October, or later.
Interest rate hike predictions in the UK have kept the pound from making any considerable gains against currency pairs, in fact the GBP/USD pair has toppled from a high of 1.5655 in mid-September to a month end in the area of 1.5111. The United Kingdom had been the fastest growing economy in the developed world going into 2014. Mid-way through 2014 a massive weakening of the GBP and the UK economy as a whole has continued well into 2015 as baskets of currencies have strengthened against the Pound.
Japan had relatively few surprises for currency markets. The Bank of Japan (BoJ) went forward with its stimulus and was backed up by the fresh Japanese government. The market-coined term, Abenomics, describes Japan’s three pronged attack on overcoming deflationary and boosting output, this stimulus package one of those prongs.
USD/JPY has bounced in a narrow range around the 120.00 figure with price action being choppy at times but never straying too far away from the big figure. There was and is some disappointment that the government has not yet progressed on big structural reforms, while the Bank of Japan indicated that the current rate of policy stimulus is about right as Japan has shown signs of a recovery.
Most of the Forex Twitter lists on the internet are full of analysts. That’s great, and nothing against analysts, but analyzing the markets and trading them are two entirely different things.
So if you want the short list of the very best traders to follow on Twitter, then this list is for you. Keep in mind, there are some great traders out there who trade well, but aren’t on Twitter or they don’t tweet much.
This collection of accounts is a list of people who are great traders (as far as we can tell) AND have an entertaining/educational Twitter feed.
As a reminder, if you don’t already follow us on Twitter, follow us @backbaymarkets for daily updates on signal performance and insightful trading tips/analysis.
So without further delay here is the list…
50 Pips has been on Twitter for a long time and provides a ton of education and encouragement to traders worldwide.
Follow his tweets to get live news analysis, Forex charts and much more.
He usually replies to tweets from followers and is as helpful as he can be when aspiring traders have questions.
Kim Krompass has a huge Twitter following…and for good reason.
She actively tweets her trades and interacts with her students. If you follow her feed, you will notice that she is a consistent trader and day trades.
It is also interesting to see what her students do and how they improve.
Just like 50 Pips, she is very helpful and calls it like she sees it.
Andrew Mitchem is a professional Forex trader who used to be a farmer.
Yeah, for real. Like in cows.
He has an amazing story and his website is really easy to navigate.
A top Forex Twitter account to follow for sure. When he is not flying his helicopter, he is teaching people to trade and trading for his personal account.
Joel is a former FX Analyst, turned pro trader.
Making the leap from analyst to trader can be a huge step. Not everyone can do it.
But Joel became successful and teaches others to do the same.
It is fun to watch his market commentary in real-time.
Valeria Bednarik is a trader and analyst for FX Street.
She sticks to tweeting about Forex, which is nice. Sometimes traders tweet more about their personal life than about the markets.
Just depends on what you are looking for I guess.
But if you want just Forex news and commentary from a real trader, this is an account to follow.
Jarratt brings a slightly different perspective to Forex education, in that he teaches people how to use fundamental analysis to trade.
But he doesn’t only teach.
He is also a top rated Forex trader. By Barclays, no less.
This guy is a beast.
Both in trading and (judging by his picture on his website) in real life too.
His tweets are edgier than most, so it is a nice change of pace.
No BS here.
If you trade for yourself, we hope that these Twitter accounts help you trade better and get insights into the market from proven traders. To start trading your own account, be sure to review our list of approved FX brokers.
Who is your favorite trader on Twitter? Let us know in the comments below…
Check out Back Bay Markets’ Top Choices for Social Trading Platforms for 2016!
Even though the signals from our traders don’t require any input from you, there is one simple thing that you can do to maximize your results with our Forex signals. In a previous post, we showed you the best time to open an account.
In this post, we will show you a super simple strategy for protecting your profits. While there is no guarantee that our signals will end in the positive every month, there is a way that you can be sure that you keep some of your profits when your account is up.
This is especially important when one of our signals has a huge month. For example, when our Omega Genesis account had big back-to-back months last year, this would have been a perfect time to implement this strategy.
Obviously, you are free to do what you want. But this post will show you some very practical reasons why you should have a plan to protect some of your gains.
The Myth of Maximizing Compounding
Many people want to keep all of their money in their trading account so they can make the most money possible. But they don’t think about the practical, psychological and monetary benefits of doing some monthly money management.
If you do have a big trading gain in your account, what then?
It is just a paper gain. That money just sits in your account, it has no impact on your life and you could lose it in the next drawdown.
You might consider this instead…
Playing Great Defense is the Best Offense
A good strategy can be to take out a portion of your profits, in months when your account is profitable.
What is the right amount of profit to withdraw?
That is entirely up to you.
But if you choose to implement this strategy, we suggest that you pick a percentage of your profit that works for you, and stick to it.
This prevents you from making arbitrary decisions that can have a negative effect on your account. Without a plan, us humans tend to make the worst possible choices.
I’m going to give you two examples and take note of how you feel in both situations. Hopefully this will help you understand why this strategy can be beneficial.
Let’s say that you have a $100,000 account and your signal makes 5% in one month. So you now have a $5,000 profit for the month. Let’s say that you are subscribed to our Lambda Ascent signal, so you would pay the $179 monthly fee.
That leaves you with $4,821 of sweet profit.
You have a plan in place to withdraw 20% of your profits every month. That puts $964.20 in your bank account and your trading account goes up to $103,856.80.
Now let’s say that your account is down 5% the next month. Your account balance is now $98,484.96, including the monthly fee for the signal.
This nets out to a loss of only $1,515.04 in your trading account.
But you still have $964.20 in your bank account to make a car payment and have something left over for some oysters.
OK, so let’s take a look at what happens when you don’t protect your profits. We are going to look at the same signal performance, but without withdrawing profits.
During the first month, you will be up $4,821 after a 5% gain. But you don’t take out any money and let it ride.
After a 5% loss the following month, you will have $99, 400.95 in your trading account, after fees.
You are probably thinking: “Big deal.”
Both examples end up being about the same at the end of two months.
But are they?
Let’s break it down…
Psychological Benefits of Protecting Profits
When you start paying yourself a portion of the profits from your signals account, it now becomes a potential income source, instead of a “savings account,” where you stash money away.
By being able to pay some of your bills with your signal account profits, your trading account can have an immediate impact on your daily life. Since you are only withdrawing part of your profits, your account also has the potential to grow.
But if you only keep your money in your account and never take your profits out, the profits don’t seem as real and you might lose your gains in the next drawdown.
The Slight Edge
Now let’s look at the monetary benefits of this Forex strategy. When you add up example #1 and example #2 above, you get the following results, after two months.
- Example #1: $98,484.96 (trading account) + $964.20 (bank account) = $99,449.16
- Example #2: $99, 400.95 (trading account)
So, by withdrawing some profit in the winning month, you actually reduce your loss in the losing month and come out ahead $48.21.
Yes, that’s not a lot on a $100K account, but it does add up…
Also keep in mind that this is a $100,000 account and only a 5% gain/loss. What happens when you have a bigger account…
…or are dealing with much larger percentage gains…
…or you withdraw a larger percentage of profits?
The benefits of really become magnified.
Why it is Important to Have a Plan
Finally, let’s examine why it is important to have a plan. It can be very helpful to set a percentage of profits that you will withdraw every month.
This is because we generally have a knack for withdrawing too much money at exactly the wrong time. I don’t know what it is, I guess it is just human nature.
When we decide to take more money out than usual, that is the same month that a signal does really well. When we leave our money in and let it ride, that is when the drawdown comes.
If you have a set percentage that you take out every month, you are not relying on luck. You have a system that doesn’t require any guessing.
There may come a time when you want to reinvest the profits in your bank account. But having that money set aside can give you some peace of mind and help you build a stash that you can spend as you wish or possibly invest in another signal.
If you are like most of our customers and you want to leverage our signals to diversify your investments, then you need to think long-term. Even the best professional traders have up and down months.
By implementing this strategy, you can protect some of your gains, pay some bills or take that extra vacation.
Most signal services will tell you to keep all of your money in your account, all the time. This is generally because the more money they have under management, the more they make on broker rebates.
But we are interested in what is best for you. Again, this might not work for you, but we want to present the option.
We invite you to play with some scenarios on paper or in an Excel spreadsheet and see how they play out for you.
What do you think of this strategy? Let us know in the comments below…
We have worked with many successful traders over the years, some of whom are our current signal providers. They all have some sort of trading plan template.
This post will give you some tips on how to formulate your own trading plan, based on our discussions with these professional traders.
A good trading plan is dynamic enough to cater to changing markets, but simple enough for traders to apply when they are actively trading. A good trading plan is also a living document that you can adjust until you achieve your desired results.
By writing out detailed plans, you can readily evaluate market activity. Instead of hoping that the market is going to do what you want, or idly wondering if you should hold on a bit longer, you need only consult your rules to know what your next move should be.
This method changes the meaning of “mistake.” When you write out your trading plan, mistakes are no longer defined by whether you win or lose on a trade (which can lead to emotion-based decisions).
Rather, they are defined by whether you maintained your discipline and followed the rules of your plan…
Rules to Write Down
Below are some of the rules you can write down for your system to get you started. You should be as specific as possible about your plan.
For example, it’s better to say that you will enter long when the daily candle closes over the neckline on a double bottom, rather than say you will enter when you see a classical chart pattern.
- Entry rules
- Setup conditions (such as fundamentals, trends or key levels)
- Stop-loss placement
- Profit taking rules (I believe in having multiple rules here to cater for different market conditions)
- Position sizing rules (how much you will trade, and how this helps to quantify your risks)
- Market type(s) that your system works in
If your rules don’t serve as clear decision-making indicators, it’s a sign that you need to add more rules to your plan, or change them. Just be careful of making reactive changes, since we tend to overvalue recent history too much in our decision making processes.
Keep Your Plan Simple
Your rules for your trading system need to facilitate decisive action. This means that your rules for buying and selling should be clear and easy to reference.
But this does not mean your plan should lack detail and nuance. Rather, the challenge is to distill your many insights from the market into a clear plan of action.
An example of a simple plan would be to buy or sell if two moving averages cross on a daily chart with a 50 pip stop-loss and a 100 pip profit target—which is generally not going to provide you with a long-term edge.
In contrast, if you believed that the USD was going to strengthen in 2015 against the EUR due to macro-economic forces, and that the weekly market type was bear normal, then selling when the fast moving average crosses below the slow one on a daily chart could provide you with a big edge.
The actual entry rules are the same, but in the second example the entry is within the context of the bigger picture.
It is simplified, but not simple…
What to do if Your Plan is NOT Working
If you aren’t getting the results you want, it’s time to revisit your rules. The key when changing your rules is to ensure that you isolate and modify one variable (i.e. rule) at a time and watch how your trading plan performs.
Keep adjusting one rule at a time until your plan is performing the way you want it to.
For example: You place 20 trades, exactly following your rules, and then make one change (such as adding a rule that your entries must have a fundamental catalyst, or you trade in the direction of the 200 period EMA).
Next, place 20 more trades following your rules, and so on until the plan is working well for you.
Consider holding off on trading until you have written your rules down. It may be that you are already trading profitably with large amounts of capital, but in this case, written rules may help you achieve even better trading results.
Once you have written down your rules, then you can start testing at small position sizes. If you are having trouble sticking to the rules, consider having one of our signal providers do the trading for you.
It can take a lot of the pressure off and allow you to do other things that you might enjoy more.
Free Forex Signals can be a lot more expensive than you think. A lot of people try to get away with not paying a monthly fee, but that is a big mistake.
We understand why people do it though. It is generally human nature to try and get things for as cheap as possible.
Would you pay $50 a single scoop ice cream cone? Yeah, we wouldn’t either.
But when it comes to Forex signals, you should pay for a reputable service. In this post, we will give you the top five reasons why it is usually a bad idea to trust free signal services.
1. You Don’t Know Who is Behind Them
This is the biggest concern, by far. Are you really dealing with a professional trader, or is it some college kid who just started trading in his dorm room?
Maybe he got lucky and went on a winning streak.
Or it could be a junior analyst (who doesn’t trade) at a Forex broker who is just giving out signals for marketing purposes. That’s a scary thought.
Of course, a lot of traders want to remain anonymous because they are generally private people, by nature. But you should know something about them.
That is why we only have a handful of signals instead of hundreds, or even thousands, like you might see on other signal websites.
We care about quality and we stand behind traders we believe in.
2. No Reason to Maintain Them
Would you go to work at your job for free? Of course not.
Even automated Forex trading programs need to be monitored and maintained. If they start to operate outside their acceptable loss parameters, they need to be reviewed or stopped altogether.
Discretionary traders have even less of a reason to provide signals for free. They have to put in the time to manually enter and exit trades.
So the next time you think about taking trades from a free service, think about this. Most people won’t work for free…at least not for very long.
What happens when your free provider decides to stop trading one day? Or he loses interest and starts taking random trades.
Getting paid is the best motivator for staying focused.
3. Zero Accountability
If you could afford to buy a Porsche, would you drive a 30 year old Toyota that you got for free? Of course not.
You might not buy the Porsche, but you would certainly buy something that was a lot more reliable.
The bottom line is that you usually get what you pay for.
When you get a car for free, the previous owner knows that the car sucks and that is why you are getting it for free. So he has no reason to provide any kind of support or be liable for any repairs.
But if you buy a new car through a dealership, you are going to be damn sure that they are accountable for the car they sold you.
The same thing goes for trading signals. When you pay for it, you expect a certain level of support and accountability for the service.
Free services don’t need to give you any support, nor do they have to screen their signal providers.
…after all, it is free.
4. Lack of a Track Record
We notice that lot of sites with free signals don’t post a track record. Even if they do, it is usually questionable how legitimate they are.
Our signals are verified and we use MyFxBook to publish the track record of each trader on our platform. Here is an example.
Yes, past performance does not guarantee future results. But if you don’t know what to expect, why should you invest any money?
5. Questionable Motives
We charge a monthly fee for all of our signals and we also make a small amount of money on broker rebates on each trade. It is clear that we are here to make money on our signals.
That is how almost all legitimate signal businesses work.
If you don’t like our signals, you will leave. So it is in our best interest, as well as yours, to work with the best traders we can find, so you stick around for as long as possible.
Makes sense, right?
But free signal services usually have other motives. The trouble is that you never know what they are.
Do they want you to buy a course? Maybe they want you to click on the ads on their site. Or maybe they want to get your email address so they can send you Viagra ads.
The bottom line is that when a signal provider charges for their services, their motivation is clear. When they don’t, you are left wondering what is really going on.
So if you are considering pulling the trigger on a free Forex signal service, we don’t recommend it. Of course, you are free to do what you like.
But because if the reasons listed above, it is generally a bad idea. Yes, that is self-serving, but we hope that it also makes a lot of sense.
Our signals are very reasonably priced, compared to other paid services.
Have a look and see what we mean.
Have you had experience with free signal providers in the past? What was the result? Let us know in the comments below…