How to Obtain an Accurate Forex Signal (2)
Maximum draw down as size
This is the greatest measure of getting a trader’s historical equity returns historically. Some traders refuse to get a loss. This causes them to continue losing trades forever or until they turn to winners.
Turning a loser into a winner sounds great, but will spend most of the margin and probably will never turn around. If it does not turn towards you, it could be leaving your entire account destroyed by a signal provider who may have lost 30 pips but survived until losing 800 pips.
Choose top forex signals
They will be displayed right on the signal provider’s main screen to choose from. Once you get some of the signal providers that are being considered for use, it’s time to dive deeper into their historical data.
Examine their real trading
Do they have a good win rate because they have opened many positions at once in the same currency pair? They may have 20 wins in a row.
It looks great, but when viewed a little more depth, you’ll see that there is only 1 trading place that wins 20 times. Is that impressive?
Check their draw on individual trades
Do they let a trade minus 300 pips and then close it when it reaches a 5 pips profit? This is a trader who lets losses out of control and reduces their winning trades. This is not the trader you want to control your money.
Do they add a losing position?
A trader who constantly adds a whopping position and hopes the conditions will turn for him is not someone you want to trade your forex account.
Choose the signal provider that matches your profile
Some traders can deliver larger results over time, but take a greater risk that leads to greater decline. This may be fine with you.
Please if you want to trade using other trader’s trading signals. Provided you can meet the above criteria then you can go.