In the conditions of unstable global economy forex market is the most optimal variant of not only saving, but also accumulating personal capital. If only ten-fifteen years ago taking part in international currency market was available only for big financial companies or traders, who had considerable free means, then today one can make money at forex by investing only 1 dollar.
What is more, it is not necessary to have specialized financial knowledge. Owing to the service of automated trade “Signals” from a famous international forex broker NordFX you can get stable and large profit by means of other’s trade. This is achieved by copying deals of best traders into your account. Consequently, every profitable deal automatically brings you profit.
Copy and Get Income
“The service of automated trade ‘Signals’ is a new stage in development of so-called nontrading participation in forex,” says John Gordon, investment safety specialist and leading analyst of NordFX, in his interview to the “Market Leader”, “and this, let me admit, is not a partner program, where you are to put certain marketing effort in order to attract new clients to the company. This is an ideal variant for people that are willing to get passive income from investment, but higher than offered by banks deposits.
The point of ‘Signals’ is very simple: you copy deals of traders that you choose from a rating into your account in NordFX company. If their trading transactions finish in plus, you also get profit. And herein you do nothing: do not trade or study short-term and long-term trends. The entire work is effected by best traders in the industry, represented in the abovementioned rating, which contains detailed information about history of trader’s trade, his maximal profits and drawdowns, preferred trading strategy (conservative, moderate, or aggressive), terms of offer, and number of people, whom he already provides signals to.”
“You can also watch a trader’s work before choosing him as a supplier and continue watching his actions when you have already started getting signals. “At the same time,” explains the specialist, “if you are not satisfied with a trader’s trade, you can replace him with another one.
Another advantage of the service of automated trade ‘Signals’ is the fact that, unlike investing in PAMM accounts, you pay for traders’ services by considerably smaller tariffs. Instead of characteristic for most managers of PAMM accounts 50% of income – the maximum of 20% is charged by providers of signals. Besides, in PAMM accounts only one trader manages over means of several investors. Therefore, if he suffers a loss, his investors lose their means too.”
In our company’s ‘Signals’, highlights the representative of NordFX, “you can work with several traders at once, thus diversifying your means in order to minimize risks and increase the likelihood of getting profit. For if one of traders get minus, you get total income anyway by means of others.
Another important advantage for users of ‘Signals’ is the fact that all traders, represented in the service, have personal motivation to effecting only profitable deals. This results from a considerable volume of their personal means being involved in trade, which gives certain guarantees of reliability, safety, and stability of profitable work for investors.”
Top Ten Trading Signals in July
“By results of choice made by users of ‘Signals’ we have composed a rating of best providers in July,” informs John Gordon, “let me remind that anyone can easily and quickly open an account in NordFX and sign up for signals of best forex traders, which directly enter terminals МТ4 and МТ5, which are available on our company’s web site.”
“Speaking about TOP 10 best providers of signals in July, it has drastically changes during last four months,” highlights the interviewee of the “Market Leader”, “thus, the signals NAVI and One siberian trend, which used to be popular among subscribers in April-June, have dropped out of the struggle. The remaining ‘veterans’ of the ten have weaken their positions, and although the volume of means invested in them remains almost at the same level, this, after all, is a certain signal to investors.”
*The data in the table has been received from the web site of MQL5.community as of the end of July 2014.
It is worth mentioning that the biggest concern among subscribers is caused by authors of signals, who have worked against falling Euro, thus constantly augmenting position on “buy”. Thus, starting from the second week of May, European currency has dropped by over 500 points against US dollar, and Euro-bulls have had rather hard times. A dramatic example of this is a signal Collonel, as drawdown on this account had increased more than 3 times, having come close to 65%. And although the means of subscribers, invested in the signal, still make up 1.5 mln. dollars, about 1 mln. of them are under threat.
“Speaking about any recommendations, we would advise cautious approach to signals, which show rather big number of output of means and replenishment of deposits,” comments John Gordon, “this not only make it difficult to assess effectiveness and stability of the signal correctly, but also – what is particularly important – to copy it properly into a subscriber’s account.
A simple example: supposingly, a provider of a signal and a subscriber started at the same time with a sum of 1,000 $. At a certain point drawdown has reached 80%, and in order to avoid margin call a provider replenishes his account for another 1,000 $, thus successfully leaving the drawdown. Whereas a subscriber did not do it and finished his signup with a rather poor result.
Or let us take a signal А75, which has reached the first place by popularity this month. At a rather wise drawdown (no more than 30%) and monthly profitability from 12% to 24%, during six months the author of the signal has output means from the account 17 times and replenished a deposit 9 times. It is clear that any accuracy of copying his signals in fully automatic regime is out of the question. Of course, deals on subscriber’s account will open at the same time and by the same instrument as on a provider’s one, but what about the size of lot?
By the way, about instruments. When registering any signup, one is to pay attention to what instruments are used for effecting trade. While studying quite good signals, we have noticed that some providers, besides deals on major currencies, often work with rather exotic pairs, such as NZD/CHF. Whereas Chinese traders love referring to pairs with yuan, which many brokers do not have at all, and if they are, spread by them can be astronomic.”
“Besides А75,” continues John Gordon, “a signal PAMM II Deposit PLUS from the TOP 10 also attracts traders’ attention. Its average profitability amounts to 10-27% per month at a drawdown of less than 15%. Confusing is the fact that its author has withdrawn means from his trading account about 25 times and replenished it more than 50 (!) times. And this is just for 6 months! It is hard to explain the reasons of such ‘bank’ activity. Although, I have certain guesses: a starting sum on this account was just about 300 $, and an increase for 6 months – 208 percent. This means that the deposit had to increase to 1,000 $. However, sums, operated by the author of the signal, in fact appear several thousand (!) times bigger: total volume of replenishments – 800,000 dollars, withdrawals – 450,000 dollars. Paradox?
In my opinion, the answer to the question lies in the name of the signal: PAMM II Deposit PLUS is a PAMM account, opened in one of the brokers, which is duplicated in ‘Signals’ of MТ4. And money is means of third-party investors, who invest and withdraw it from this account. What is more, the number of profitable deals of this author – 96%, also attracts attention. In other words, he opens one position after another and waits until the price turns in the needed direction, after which the series is closed. Subscribers need to analyze and consider all these nuances before entrusting their means to any signals.
Analysis of data on various signals only proves the general truth ‘the higher profitability, the higher the risk’. Thus, at a stable increase of 2-3% per month, a maximal drawdown of signal A li go amounts to only 17%. At the increase of monthly profitability to 5-10%, drawdown rises to 30%-35%.
If to look at a signal PROFIT SUPER, it shows steady decline of increase of means (140% income in January, 21% in February, 43% in March, 5% in May, 10% in June, and about 5% in July) at rather high average profitability of about 35%. In this case drawdown starts getting close to 47%.”
“Speaking about signals that give over 50% income per month, drawdowns of 80-90% from deposit are normal for them. It is clear that everyone wants to make big money quickly, but there are no wonders in the world. Therefore, we strongly advise not to put all eggs in one basket and to try to keep the balance between risk and profitability when forming one’s investment portfolio,” concluded J. Gordon.
° Finances make up the point, which, according to Archimedes, allows turning the whole world over. (Cardinal Richelieu)
