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What attracts you the most to follow a signal?

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  • What attracts you the most to follow a signal?

    Hi Guys,

    Hope you are all having a fantastic Easter break :-)

    Just wondering what would be the most important thing you would look for in deciding if you will follow a signal or not? Apart from the all time DD % of course.

    Is it any of the following :-

    Monthly returns in %?
    Monthly returns in number of pips?
    How much the overall return has been since the signals inception compared to the total DD?
    How often the signal trades?
    How many average pips per trade?
    Risk per single trade?
    Risk per total trades open at the same time?

    Or is it something else?

    Also when looking at the myfxbook analysis for a system/signal do you take any of the following into account?

    - Sharpe Ratio
    - Risk of ruin

    Very interested to hear your thoughts of the above.

    Cheers,
    Mario.
    Last edited by Mario Draghi; 04-20-2014, 02:05 PM.

  • #2
    Short answer for me because I'm driving. A substantial amount of capital in the master, proven track record, steady growth but not outlandish. Communication from the trader.


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    • #3
      Key indicator = monthly returns / max DD
      surely that's the best risk to reward indicator for a signal?

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      • #4
        Originally posted by GlockSocks View Post
        Short answer for me because I'm driving. A substantial amount of capital in the master, proven track record, steady growth but not outlandish. Communication from the trader.


        Sent from my iPhone using Tapatalk
        Thanks for your feedback GlockSocks,

        What would you consider in your opinion to be a "substantial amount of capital in the master" ?

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        • #5
          Originally posted by pearcey2 View Post
          Key indicator = monthly returns / max DD
          surely that's the best risk to reward indicator for a signal?

          Sent from my Nexus 5 using Tapatalk
          Hey Pearcey2,

          Thanks for your feedback.

          Would that be the one and only thing you would base your decision on?

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          • #6
            No no not at all. Avg trade length, Avg pips won by Avg pips post. Avg pips won vs MAE (eg does the trader win 2 pips per trade but hold losing trades to -400 pips? Been burned a couple of times with signals like that). Maximum time between equity highs (eg consistently growing account)

            There's a pretty large range of deciding factors. I need to be absolutely certain I can trust the trader to risk my money responsibly

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            • #7
              Originally posted by Mario Draghi View Post
              Thanks for your feedback GlockSocks,

              What would you consider in your opinion to be a "substantial amount of capital in the master" ?
              Good question. More than 10k. 100k would be speaking my language. I feel comfortable following a signal if the trader has his own capital at risk. The majority of the signals out there start with a 5k master or less. In my experience, I end up losing money with the majority of these.



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