Almost all forex traders face some common problems during their trading experience. These are the major issues that are encountered when patronizing forex signals providers. As there is no set way to sift out the good ones from the bad ones, in this situation, traders have to find out another way to identify the most accurate forex signals providers.
Tips for Choosing an Accurate Signals Provider
It is natural for traders to get confused about what metrics they should use when selecting an accurate signals provider. This article will make the whole process simpler by explaining in detail some of the most important points.
Conservative or Aggressive?
Some services that provide forex signals choose to use very aggressive tactics. These are not good for beginners. On the other hand, there are signal providers who perform in a conservative way and tend to leave a lot of trades and money on the table. Between conservative and aggressive services, there are those who strike a balance and hit it just right. Oftentimes, signals providers who adopt an aggressive trade policy tend to take many trades that carry a lot of risks. Sometimes, they suffer large losses. And as many new retail traders start to trade with only a little capital at hand, such platforms expose them to excessive risk.
How can a trader know a signals provider who is very aggressive?
When looking for businesses that provide accurate forex signals, you may find providers that will send their trade results through third party verification websites like Myfxbook. When you check their metrics, you may notice things like very steep profit graphs and high drawdowns. You can also find out the list of accounts that seem to crash before a surprising recovery.
The ideal situation to notice in these graphs would be numbers that rise gradually in a sustainable manner as opposed to steep or zig-zag patterns. They should also have a record that lasts at least one year showing the sustainability of the provider system. It should also reflect a believable result pattern.
Verifiable Results Analysis
You can observe the performance graphs and the trade stats of these forex signal providers.
Profitable forex signal provider
You can observe the profit growth charts on these platforms to assess their performance. When a performance graph with a red line shows a smooth graph, it means it is ascending gradually. This usually happens with a signals provider that is not too conservative and not too aggressive. The equity growth chart with the yellow line shows the profit growth line; if a graph shows a 91% rate return for a specific time period, it is not bad at all.
Most Accurate Forex Signals Provider
Here’s how to understand if you’ve selected the most accurate forex signals provider. The first thing to look at is the steepness of a segment of the profit growth chart. The sharp drop in the equity growth chart is also worth noticing if you see a steep rise in profit growth. What does it represent? When this happens, the equity has dropped badly. In this situation, the signals provider is forced to use virtually the entire account capital in risky trades to attempt a recovery. This is the main reason why the profit growth chart got very steep. It really seems tricky but such accounts have a short life and usually, they face a decline in a short period of time.
There are some services for forex signals who do not even provide any trade results for assessment. Such providers must be avoided entirely.
If you find a platform for forex signals claiming to offer you some amazing privileges or promise to return a large amount of profits, you should be cautious. If they have a record of high degree performances that are either too good to be true or cannot be independently verified, you should not follow them blindly.
Always go for the services that are more realistic. Also, stay away from the traders that claim to offer you “no loss” systems. It is a scam as there is no such system or trader that has never had a loss. The process of getting huge profits requires consistent, long-term efforts.
You should choose the providers that offer free trials, as it is important to see for yourself if the signal provider’s services are trustworthy enough or not. The free trial period enables you to evaluate the services of each signal provider.