jezek5
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Going through a bad patch about six months ago and testing my new system i thought lets pay for signals,after all you only ever hear good things about them,i was wrong,on average ten sms signals per week but price almost never hit the entry order or went through to the stop loss,IMHO they are not good,like Tomerep says show us a screen shot
Old_Bob
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jezek5, as you see i replied to Ayman's question!jezek5 said:
What i posted is the pips made by Fxmaster. My own score is very close to it but it happened several times during last year that i missed some signals if i'm travelling or in vacation but at the end when i ompare the results they post to the signals i store in my mobile phone, i find that it's same.
FXSCALPER2
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Ayman said:
I can tell you that they are honest. You shouldn't worry about that. In my opinion, you have got bigger probelms following these guys' signals, but dishonesty ain't one of them.
I think these guys will eventually wipe out your account. It is just a matter of time. Why? Because they are using a system that doesn't adapt. What you need is about three months worth of trending, and your money is gonna diappear. They do the worst type of trading imaginable: picking tops and bottoms while the price is moving. Selling tops and buying bottoms is one thing when there is an indication the move is over, but selling a falling market and buying a rising one is insane. Their system is relying on luck big time. I am certain that they will get wiped out sooner or later. God help them if the markets decide to trend for a while.
When you choose a system, you should always avoid the ones that assume rare events do not occur because they do.
Old_Bob
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I don' agree with you FXSCALPER2, Even when the market is trending, there's always times of retracemnet and correction because the market never keeps going in one direction. In a bullish market a good trader waits for such retracement to go long and capture as much pips as possible. Fxmaster are very good in trading such market and after analysing the trades i made during 2005, i found out that their best performance was during trending markets.
They are in the market since 2003 and if they were going to be wiped out then they should be gone long time ago but they are still around.
They are in the market since 2003 and if they were going to be wiped out then they should be gone long time ago but they are still around.
Old_Bob
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I received an update from Fxmaster and they say that their trading will be supported by Fx-auto.com which means that all signals can be executed automatically on a remote server.phildunn said:I am curious what trading system Fxmaster using,is it fully automated?
FXSCALPER2
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G_Maxim said:
I hate to say this to people again and again, but their performance of just one month tells you exactly nothing. You should ask more pertinent questions such as, what stop losses do they use, what is the system like, can you tolerate the big drawdowns, do you have enough capital to trade their signals, and so on. It is much more important the system makes sense to you given your personal circumstances rather than what happened in January.
With all that in mind, I can tell you the following about them.
1- They pick tops and bottoms. They don't wait for a top or a bottom to be formed, they just sell into rallies and buy into breaks.
2- They use 80 pip stops across the board, for all trades
That is all you will know by just looking at their signals in real time. This is a very hard system to trade for most people. You will find yourself catching a lot of falling knives. You can have 5-10 losses pretty regularly. You have to get your risk control spot on. In other words, you shouldn't trade more than 1% of your account and adjust for new trades on the basis of losses as well as open positions. You need good capital and a lot of nerves to trade their system. They are good by and large, but make sure you don't abandon the system when you hit one of their huge drawdowns because you will have them for sure.
Does it make sense to you to catch tops and bottoms? If so, then go for it. Can you handle big drawdowns? If so, go for it. Do you have enough capital to withstand the hit and make enough money after paying their fee?
One thing you have to keep in mind is the fact that pip counting is a fool's game. The reason is that, once you go through drawdowns and cut back as a result, your profits will not be as much the pips suggest even if you come out ahead pipwise. Keep in mind that it is possible to make more money from 3000 pips/year than 10000pips/year. The best system to trade is one that is consistent and has low drawdowns.
I hope that helps. Cheers.
Ayman
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G_Maxim said:
I tested their signals during January and they made +420 pips. When i compared my recoreds with the results they posted later, i found that they post exactly what was sent to me. I was on a demo account in January. Now, i'm trading their signals on my real account. I hope they will keep the good performance for the coming months.
sorry for being honest, but it seems that quite a few doesn't understand how fx mechanisms work.
It is not question about signal provider honesty (we may suppose majority of them are). But things have to be evaluated from realistic perspective.
And realistic perspective is that many pairs (like EURUSD, GBPUSD and USDCHF) are highly correlated. So, when you sell one lot EURUSD and same time you buy one lot USDCHF, you have same effect as if you sold 2 lots EURUSD. So why signal providers trade correlated pairs simultaneously? Best guess is because they give them double (or triple) amount of pips which is far from reality.
For example here mentioned FXsignal provider had best month Nov. 2005 result over 1000pips. But by looking into trades more precisely, it is obvious that at least 700 pips are earned by trading highly correlated pairs (real result would be +350). So, as an average, no. of monthly gained pips should be divided by 2 or even by 3, no matter what signal provider is in question.
Another, by simultaneous trading correlated pairs, one has to have relatively large deposit, which is inefficient money management (or gain % is too small).
Finally, money management, probably most important factor in successful trading is completely ignored by signal providers community. But fine-tuned money management is complicated issue and should be considered with great attention.
Only realistic approach in evaluation of signal providers would be how many $ emitted signals earned to your account monthly (in %).
P.S. I must admit that I really don't see consistency in picking trades by FXsignal. Sometimes they pick top/bottom (very risky), sometimes they trade in the middle of consolidation. Their decision sistem is puzzle to me (and I am over 10 years in this business). That doesn't mean they are not good or honest or anything - I just want to say that, to paraphrase Voltaire, common sense in trading is pretty uncommon.
It is not question about signal provider honesty (we may suppose majority of them are). But things have to be evaluated from realistic perspective.
And realistic perspective is that many pairs (like EURUSD, GBPUSD and USDCHF) are highly correlated. So, when you sell one lot EURUSD and same time you buy one lot USDCHF, you have same effect as if you sold 2 lots EURUSD. So why signal providers trade correlated pairs simultaneously? Best guess is because they give them double (or triple) amount of pips which is far from reality.
For example here mentioned FXsignal provider had best month Nov. 2005 result over 1000pips. But by looking into trades more precisely, it is obvious that at least 700 pips are earned by trading highly correlated pairs (real result would be +350). So, as an average, no. of monthly gained pips should be divided by 2 or even by 3, no matter what signal provider is in question.
Another, by simultaneous trading correlated pairs, one has to have relatively large deposit, which is inefficient money management (or gain % is too small).
Finally, money management, probably most important factor in successful trading is completely ignored by signal providers community. But fine-tuned money management is complicated issue and should be considered with great attention.
Only realistic approach in evaluation of signal providers would be how many $ emitted signals earned to your account monthly (in %).
P.S. I must admit that I really don't see consistency in picking trades by FXsignal. Sometimes they pick top/bottom (very risky), sometimes they trade in the middle of consolidation. Their decision sistem is puzzle to me (and I am over 10 years in this business). That doesn't mean they are not good or honest or anything - I just want to say that, to paraphrase Voltaire, common sense in trading is pretty uncommon.
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FXSCALPER2 said:
Hi everyone
I'm a first time poster here but found the discussion on FXMaster interesting. I am considering joining them again as a complement to my own trading. When i was a member back in 2004, i can say that they are honest. So, yes, absolutely, this is the least of your worries.
But i have to respectufully disagree with the above post in regards to FXMaster eventually going bust because of their style of trading (picking tops and bottoms).
If they have a system that does not adapt, then how do we explain the fact that they performed very well during trending times? Examples of this would be the April, May, June and July of 2005, when the GBP took almost a 2000 pip drop. Reviewing their performance shows that they were descently profitable in each of those months.
I am not convinced either that picking tops and bottoms is a losers game either. The fact remains that markets spend most of their time ranging and maybe only 20% of the time trending. After reviewing some of their past trades, it seems to me that many of their entries and profit targets are based on support and resistance trading, a very reliable method, especially during ranging.
If these guys were going to be wiped out because of a runaway market, then it would have happened long ago. I think they are capable of adapting. They do not trade mechanically like many other signal providers, which is why they are probably more able to adapt than any other signal service out there.
When i was a member, i lost half my account with them. Yes, it's true they have some pretty big drawdowns but don't look at the pips in isolation. When i got hit, i hadn't the faintest clue of what proper money management was. Now, thankfully, i do. This is where the danger lies. If , for example, you take a look at their worst drawdown period where they had easily something like 10 or 12 losses consecutively. And assume that your money managemt regime forbids you from risking more than 1% of your account on any one trade signal. If you have a broker that allows you to control your trade size from anywhere from 0.10/pip to 1000$/pip, then this loss wouldn;t have represented more than 15-17% drawdown. Looking at the pips alone is useless. If you aren't confined to trading 1$ or 10$/pip, then you can really keep tight control on your losses
The one thing i cannot emphasize enough is proper money management, especially with FXMaster. You will eventually blow out or wuit out of panic and frustration during one of their drawdowns if you risk anything more than 1-1.5% per signal. That being said, you need a fair amount of capital for sure, to make these risk parameters pay off for you.