A few tips on what you should pay attention when you subscribe to signals via MT4 and MT5 platforms.
You can be sure that those who are reading these lines, knows (and if not, you know) about the merits of social commerce, allowing fully automatic copy on your account transactions of many more experienced and successful traders. This is especially helpful because use this service very easily - because it is built directly in the terminal MT4 and MT5.
Those who prefer to sell itself, may not even suspect that the tab "Signals" at the bottom of the terminal opens instant access to one of the world's largest social trading services. That's just one of tens of thousands of traders - signals providers choose to be in profits and not lose their money? This is definitely the number one problem.
In this and subsequent articles we will try to identify certain error subscribers and tell readers how to avoid them in the future. So far, only six will share observations that brought us last spring.
To help subscribers, the company MetaQuotes (the developer of the MT4 and MT5 platforms and the creator of the service "Signals") gives us his list of the best and most reliable signal. In addition, by visiting the portalmql5.com, signals can also rank the most popular among the subscribers and for a variety of other parameters.
And now, if you will, ahead of the introductory part, let's move on to the observations which we announced a little higher.
Monitoring №1 is that very often MetaQuotes ratings and subscribers ... not the same, and is primarily due to the fact that subscribers are constantly prevails over the desire to obtain the greatest possible profit in the shortest possible time. This, naturally, leads to a sharp increase in the chance of losing your entire deposit.
We are in any case do not claim that the rating MetaQuotes perfect, but it does, at least, there is no such factor as human greed, and there are several dozen indicators, applying for an objective assessment of the signal quality.
Observation №2, the results of which, probably, nobody will be surprised, but very lucidly that confirm the fact that the higher the yield, the greater the drawdown. For signals with a monthly increase of capital in the 15-25% drawdown usually ranges between 15-Tew and 40 percent of the deposit. Further, with increasing returns, drawdown begins to confidently steal up to 100%, and what happens when such failures in the negative - no need to explain.
Observation №3. Created MetaQuotes service allows you to rank the signals, including, and the duration of their life. Here statistics clearly indicates that signals with a yield of 100, 300 percent or more a month live, usually not more than 30 weeks. Those who survived without the "plum" more than 20 weeks are - alas! - On the tops of preferences not only subscribers, but also in the forefront of other ratings.
If the filtered signal on term life, it turns out that the signals are living a year or more, on average, investors bring not more than 5-10% per month. (Which, by the way, when compared with the interest on bank deposits, not so bad. Or rather, very good).
And now there are two observations that are sure to be useful to users of service "Signals" and we all strongly suggested to pay attention to:
Observation №4 - the difference between the graphs and the balance of the account funds. This is probably the most important and the most obvious indicator of what you can expect from this subscription. And if the balance is steadily going up, and the funds remain somewhere at the bottom, or frequently jumping up and down, it clearly demonstrates the riskiness of a subscription to the signal.
Observation №5 - currency pairs, which makes transactions provider signals and spreads it. In the study of very good signals suddenly it turns out that some suppliers, in addition to transactions in currencies majeure, work and quite exotic pairs, such as CAD / JPY and NZD / CHF. Chinese traders are also, for example, like to refer to couples with the yuan, which in the arsenal of many brokers do not, and if there is, then spread them could just be astronomical.
Observation №6. Automatic MetaQuotes, used to calculate the size of the copied items - is unquestionable good, but ... with some shortcomings. For example, the standard size of a standard lot is 100,000 units of the base currency, but somehow different brokers on this standard procedure may be different from the generally accepted in greater or smaller side. In addition, some brokers, with cent accounts, indicate the currency on them in cents - USC, as is in fact, and in the full-length dollar - USD, which is why there may be significant errors in assessing the size of the deposit and the value of traded items.
We believe that the six observations for one material is enough, therefore, in order not to bore readers, let's briefly discuss. Now, all these features are "signals" are the telegraph, but in the very near future we will try to parse them with specific examples and give tips that we hope will allow traders to avoid associated pitfalls.
In addition, of course, we share with you the observations of 7, 8, ..., and maybe even 9 and 10. But you are with us - 11, 12 and 20 ....
Goal? The goal is very "simple" - to create together a system that will allow anyone to subscribe only to the signals that we are really able to bring real profits with minimal risk.
Perhaps this is what is meant by the term "Social Trading".