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Consistency, Lot and Signal Allocation.

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Feb 18, 2012 08:44 am
#1
slumbum User

Сообщения: 13
Зарегистрирован: 14/01/2012

I looked at signal provider performance before adding them to autotrade. First I added small mini-lots and was successful but stats, even though they are good, are deceiving and really don't guage risk well. Apparently, a trader can have the best stats yet take a bunch of risky trades (by risky I mean have no stops or exit strategy that are consistent).  Twice I have gotten burned by traders taking multiple positions close together in the market on the same pair with little regard for managing risk. They take huge losses, but it doesn't even budge their stats.  In the end, I can't blame the inconsistency of the signal provider, in the end it's up to me to:

1)Find a signal provider with consistent strategy and risk management. (firm stops, various pairs, consistent TP levels) 2)Allocating the lot sizes so if one of my signal providers hits the vodka I'm not wiped out.  3)Having the right number of signal providers to assure consistent profits.  4)Max-open trades per signal...

If anyone has a suggestion on how to achieve my goals please feel free to chime in! 

 

Thank you, 

Ed

Feb 21, 2012 04:21 am
ironical User

Сообщения: 734
Зарегистрирован: 22/04/2011

Your suggestions r absolutely correct. We have to manage our risk. Signal provider will be trading according to his style so sometimes he might take big risk. Fxstat has given many options to manage risk and money. We should use these options wisely.

The good or ill of a man lies within his own will. – Epictetus

Feb 21, 2012 03:02 pm
mikjurado User

Сообщения: 87
Зарегистрирован: 23/01/2011

I'm signal provider, and I have in my profile information about money management risk, I really don't like people loose money, I have gains and loss like everybody, but with a right money management we go up!. Fxstat should recommend signal provider put at their profiles the correct information for their followers....

[blush]

http://www.fxstat.com/widget/link?t=wide&c=1&s=6979&o1=growth&o2=drawdown&o3=monthly&o4=equity

Feb 22, 2012 01:05 pm

Сообщения: 939
Зарегистрирован: 21/04/2011

No one will want to loose reputation. So signal providers try their best to maximize profits. But sometimes when a signal provider has more than one account, he may try to use new strategies and thus loosing money.

Stick to your rules

Feb 24, 2012 04:13 am
Sasha User

Сообщения: 836
Зарегистрирован: 16/05/2011

Originally posted by mikjurado

I'm signal provider, and I have in my profile information about money management risk, I really don't like people loose money, I have gains and loss like everybody, but with a right money management we go up!. Fxstat should recommend signal provider put at their profiles the correct information for their followers....

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Usually signal providers provide information about their trading style and min investment needed to follow him. Fxstat has written it in Faqs that it confirms that signal provider is not using risky trading style.

Feb 25, 2012 05:23 pm
Champ User

Сообщения: 711
Зарегистрирован: 17/05/2011

There is one more thing to keep in mind that even if signal providers r trying to take risks, they will take it with minimum lot. Usually signal providers trade with large capital and small losses do not affect their trading graph much. Whereas signal followers usually trade with less capital so small losses affect them more. But in the end signal followers can minimise risk by applying good risk and money management.

http://www.fxstat.com/widget/link?t=tiny&c=1&s=24959&o1=growth&o2=drawdown&o3=profitfactor

Feb 26, 2012 06:16 pm

Сообщения: 939
Зарегистрирован: 21/04/2011

Originally posted by Champ

There is one more thing to keep in mind that even if signal providers r trying to take risks, they will take it with minimum lot. Usually signal providers trade with large capital and small losses do not affect their trading graph much. Whereas signal followers usually trade with less capital so small losses affect them more. But in the end signal followers can minimise risk by applying good risk and money management.



yes.lot size and capital investment r related to each other. Usually signal providers tell abt minimum capital and lot size req.

Stick to your rules

Feb 26, 2012 07:14 pm
slumbum User

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Зарегистрирован: 14/01/2012

Well, I have to tell you my mistake has been getting good results with small lot sizes, then blindly going to much larger lot sizes (and multiple open positions in the same pair from the same provider) This caused me huge losses. Granted, it was my fault for not limiting the max open lots, but I think behavior like taking multiple unhedged positions, not setting consistent stops should be part of the stats we are looking at when adding a signal provider. Even after my losses, it hardly affected the stats, rank and standing of signal providers. It seems to take a lot of losses to even budge the numbers.

Somehow I think consistency and reliabilty of a signal should be factored into their ranking.As for the funds allocated feature this seems confusing as everyone handles risk differently. I find myself asking if I should allocate 1k per mini-lot?  Hmm...

I'm still looking for a good mix of consistent signals, lot sizes and way to allocate.  I think I'll stick to 1 mini lot per pair, 1 max open position per provider. I'm afraid I won't see much growth this way, but it seems to be the only way to play it safely.

Jun 24, 2012 11:34 am

Сообщения: 66
Зарегистрирован: 08/06/2012

I think its better to copare some of signal provider before selecting one this can give you wide picture of the market and never go for scalper because when you select scalper to follow at that time simiar problems occure always select a trader to follow which make at least more than 20 pips that. More than 20 pips measn trader is following some good technical system and on this target level if he did not apply stop loss than monitor you trader at your own.

Game is not over Till it's Over

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