Copy Trading FX Signals is not a perfect process, but there are hacks to make it better.
What could possibly be the problem with FX Signals that are live, profitable and ready for copy trading? After accomplishing the basics of scrutinizing the FX Signals that you may come across, there are ways to manage risk even further beyond creating portfolios. There is even one way that you can actually save money and even get some of these FX Signals that are live and profitable for FREE. This is an opportunity to go beyond the basics and evaluate these Copy Trading Signals.
This knowledge will empower you to expand your considerations.
1. Broker-to-Broker Slippage Matters for FX Signals
Traders may be familiar with the term ‘slippage’. Slippage takes place when there is an inexact rate fulfillment of an order for better or worse. The desired market price that one wanted is one price and the trader ended up getting a different price. The difference between the intended price and the executed price is the slippage. Slippage in this familiar sense is common during more volatile market hours like Fundamental Events and Market Opens.
It’s also a way for an unscrupulous broker to cheat clients and one major broker alleged of this activity is being sued for it in the United States.
Slippage is bad because it either inflates returns and provides a false sense of value in a trading strategy or hurts the trader’s profitability. Reversions to the mean, inconsistency and lack of profitability harm reliability, predictability and the account balance.
However, execution-based slippage is not the only slippage that exists!
In the world of FX Signals that are live (Copy Trading), the reality exists that people use different brokers. The FX Signal’s Live Provider whether it is automated or not is placing a trade through a broker. The FX Signal Provider may be profitable and meet basic criteria, but the rates that the provider gets is likely not going to be the rates that you get. It’s possible to get the same rates, but it will not happen all the time and returns will differ. Will they differ enough to make a profitable FX Signal’s Live Subscribers unprofitable? Likely not.
In fact, it is possible for a subscriber to have a better return than the FX Signal’s provider thanks to positive slippage. Does this mean that this is necessarily a good thing going forward? No. The profits have been made, but the trust is shaky. Of course, this could weaken gains and amplify losses with negative slippage.
For a subscriber to an FX Signal that is scalping, this could be a major problem. However, a subscriber that is not using an FX Signal that is scalping would not be as worried. The differences would be far more negligible.
However, the best way to reduce the risk altogether is to do the following:
- Don’t subscribe to scalpers.
- Find out the broker-to-broker slippage rates and choose one with the servers that have the lowest slippage across many different trades.
With the knowledge of #2, you could actually have accounts with several brokerages at once and reduce your risks for multiple FX Signals that are live. It may be surprising to find out that the best brokers when it comes to these slippage issues may not always be the same as the provider. In fact, sometimes the exact server of the provider has more slippage than other brokers. This data can be found on the MQL5 site for MT4 and MT5 FX Signals.
Unfortunately for Myfxbook users, this information is not available on a per-signal basis and many of the most successful users have very tight entry and exit points. However, there is a way to use Myfxbook to your advantage and even make scalp trades that replicate some of the best performers coming up!
2. Deposit Loads
How much of the FX Signal Live Provider’s account is being used per trade? How much true leverage is utilized? What if leverage amounts do not line up?
This can be examined and if the FX Signal’s Live Provider makes it impossible to place a trade due to differences in leverage and deposit loads being too low, this can be adjusted accordingly with an Expert Advisor in MetaTrader 4 that will multiply the trade accordingly to overcome the differences and align the deposit loads.
Of course, if the FX Signal’s Live Provider is too conservative and it would make sense to add a bit more risk, this can be accomplished.
If the opposite is true, where the FX Signal Provider has a deposit load that is too high per position, it may not be a good idea to subscribe.
3. Doing a little bit of detective work with the FX Signals
Want to know how to get an FX Signal for FREE? Well, you simply have to determine what the FX Signal Provider is doing and some of them make it patently obvious or have a strategy that is easy to replicate. The easier it is to determine, the easier it is to code in MetaTrader 4 and create an Expert Advisor. Check to see that the backtested results match or nearly match the results of the FX Signal. Go through the process of developing the Expert Advisor like it is a software that you would put out to the public.
How is this possible?
With Myfxbook, getting a free account and then examining through the various FX Signals that are available to copy would be the start.
Doing the following would make everything much easier:
- Downloading the Trading History into .csv format.
- Visualizing the trades in the Myfxbook browser or in MetaTrader 4 with this file.
- Looking at the daily and hourly breakdowns of trade occurrences.
- The entry and exit amounts tell a story as well.
- Placing the visualized history of trades on the chart and comparing against various indicators, oscillators, moving averages and other forms of technical analysis.
The scalpers are easier to determine than the non-scalpers, which means that you could replicate a scalper’s strategy for FREE in your MetaTrader 4 or MetaTrader 5 Expert Advisor.
There are even a few of these Copy Trading FX Signals that are scalping and require only three lines of unique code to replicate the success of very popular strategies! These strategies are quite popular too.
Now, you are more aware and ready to hack FX Signals… in some cases quite literally.
The post 3 Useful Hacks for FX Signals that are Live and Profitable appeared first on Freevestor.
