If you think you don’t want to trade Forex on your own there is another easy way to trade Forex without having to trade yourself. Forex signals are created from an account of an active trader. For example: we have multiple Forex trading accounts and each account creates its own signals. People, like yourself, can subscribe to these signals for a small monthly fee. Once subscribed your account mimics the trades of the signal providers account. So when the Forex signal provider (us) makes trades your account makes the same trades. This is an easy way to trade Forex without any Forex trading experience.
Keep in mind that if you do use Forex Expert Advisors to trade you too can sell your trading signals. This is a nice bonus which can create a passive income.
Our current signals:
Currently our signals are listed on MQL5 and available for subscription. We have future plans to allow subscriptions through our site but for now it is easiest to subscribe through MQL5. If you check out MQL5 you can also see our products and their reviews.
When you look at a provider’s signal there are a few key points to look at to determine if the signal is right for you. In our opinion the most important stats to watch for are account drawdown (DD), trade accuracy, profit factor, and trading activity.
The account drawdown is how much account equity has been at risk. You can also see how often the equity dips and by how much. A good Forex trading system usually stays below 25% DD.
The trade accuracy pretty much explains itself. It is the percent of trades won/loss. Ideally you want a win percent of 65% and higher.
Profit Factor = (Winning probability x Average profit from a profit-making trade) / (Loss probability x Average loss from a loss-making trade). Profit Factor below 1.0 means that the trading system is loss-making. Profit Factor within 1.0-1.5 means that the trading system is relatively profitable. And the higher the profit factor is the better.
The last one is trading activity. Some traders might not consider this super important but we disagree. Trading activity is the amount of time you have open trades. If you have a trading activity of 99% that means 99% of the time you have open trades. When you have trades open all the time there is a higher chance of losing trades. The reason there is a higher chance of losing trades is because of economic news or world events that might occur during a trades. During world events or economic news the trading can be extremely volatile. We try to keep our trading activity below 60% but keep in mind our Expert Advisors also have a news filter to help offset that risk.
In the next post we will teach you how to subscribe and setup your signals.