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  • Westie
    replied
    Originally posted by mwaschkowski View Post
    Ah I see. I guess if the signal makes fewer trade then the slippage will be less of a factor, or does it relate more to the length of time in a trade?

    Thanks,

    Mark
    It's either trading really fast, for a small number of pips (scalping) or opening / closing trades at times of high volatility (eg Market Open).

    It's a fundamental problem of signal copying (or Darwinex, which is also a copying service - though they don't mention it).

    I'm no expert, but the process for a (buy) trade at market would be - best case :-

    1) Buy at Ask price sent to broker
    2) Some delay by the broker
    3) Accepted by broker, trade placed at Ask price

    Now with a trade copier (I'll annotate the slaves as A,B,C etc)

    1) Buy at Ask price sent to broker
    2) Some delay by the broker
    3) Accepted by broker, trade placed at Ask price in step 1
    A) Buy Signal sent to copier slaves
    B) Some network delay
    C) Slaves request buy at current Ask price
    D) Some delay
    E) Accepted by broker, trade placed at Ask price in step C

    The delays are normally very low (maybe 500m/s), and the price doesn't move that much.

    If the strategy opens / closes trades quickly you will bleed profits gradually.

    If it opens / closes trades at times of high volatility (large changes in price) you will lose money more quickly as the broker will be expanding the spread at this point - and you will get the worst price.

    Leave a comment:


  • mwaschkowski
    replied
    Ah I see. I guess if the signal makes fewer trade then the slippage will be less of a factor, or does it relate more to the length of time in a trade?

    Thanks,

    Mark

    Leave a comment:


  • Westie
    replied
    Here is the list of traders I have invested in here but have since quit. Some don't exist anymore, some blew accounts and disappeared, some struggled badly but are still going.

    A lot of them I left before the actual blow ups, sometimes at breakeven, often with heavy losses (Steady Capture for example was a heavy loss but would have been worse had I held on).

    Dilong - Blown up
    Joe Pro - Blown up
    USD/CAD Scalper - Blow up
    Calm Profits - Blow up
    Safe Aussie Scalper - Still going, martingale style trading
    Asad Reborn - Blown Up
    FX4 Charlie - No longer trading unfortunately, still around though, throughly good chap.
    Low Risk USD/CHF - Blown Up
    Red Rhino - Blown Up
    Steady Capture - Still going, doubt anyone is following anymore, out in January after something like 20% loss
    SatangFX - Having a tough time of it this year, I got out around breakeven on the 2nd or 3rd large drawdown.
    Some pips are enough - Still going, I found I was making losses when he was making profits due to slippage.
    Momentum capture - Still going, having a pretty bad last 6 months.

    Leave a comment:


  • mwaschkowski
    replied
    Hi Westie,

    OK, thanks for the response, its seems pretty quiet around here...

    Seems to me that the reputable traders would want to avoid a blow up and you do have some control over where you would invest/what kind of drawdowns could occur right? I guess like anything else it comes down to the person doing the trading and if they are responsible or not...

    Have you tried following a signal and if so did you see returns similar to what was reported?

    Thank you,

    Mark

    Leave a comment:


  • Westie
    replied
    In my experience, the vast majority of the signals trade with unsafe money management of some description. They will do well for months, weeks, or even years and then have a huge loss (and likely blow the entire account up) in a very short space of time - weeks or months probably.

    A lot of times there are warning signs - huge open drawdown followed by a magical recovery (ie they were lucky this time).

    It's often not easy to see this happen. The MyFxBook and SimpleTrader charts don't make it obvious. For example, if you hold 10 positions, all offside for 75% of your account - this will not show in the charts history. If you close or open any trades at this point, the drawdown will get reported on the charts - and your chart will now look like crap, and you will have no investors.

    So what happens is, you sit on the open positions and hope for the best, maybe you get back to 10% drawdown or some such, at this point you can close those positions and all that gets shown on the chart is a pretty minor 10% drawdown - looks good for investors.

    Anyway, good luck.


    Leave a comment:


  • mwaschkowski
    started a topic OK, what am I missing?

    OK, what am I missing?

    Hi,

    Recently started looking at following signals. I've reviewed a bunch of sites and systems and these things stand out:

    1. Relatively new/unproven
    2. Cheap
    3. Amazing returns
    4. Goal alignment - the signal provides get paid for success and you make a profit

    I have to admit those last two are what are so attractive - I've used account managers before and don't mind paying for investment advice/management and these signals are very cost effective if they work as their history would suggest. I see there are/have been some systems that were scams but can some people here chime in - do the signals from reputable providers pay off as shown? Whats the catch??

    Thank you from someone just starting off!

    Mark
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