Another signal service...

[Anonymous]

I would be interested to know how they arrive at their entry/exit/cancel recommendations.

I wonder if they have to pass advanced Accounting exams and have sufficient understanding of the Account Books to see if customers cancel their orders for any products to have a feel of how much support they have for their product at any particular point in time? It could be irresistible for customers to cancel orders if there is a severe penalty imposed on any cancellations.

 

[rossored]

Just had another email - not for a signal, though.

It's confirming the -40 loss of the 12th (but I didn't get an email about the failure on the 10th), and dropped the YTD total down to +1681 (apparently)


EDIT : received at 11.42 - "no signal today"

 

[Anonymous]

If there are more confirmations about the stop losses than there are about the targets, it shouldn't be too difficult to see how accurate the signals are.

 

[rossored]

Another signal sent, this one at 6.52am BST.

Sell gbp/usd at 1.8077, stop 40 (8117), target 80.

(stopped out for -40)

LOL.

Looks like this truly is the great contrarian indicator - quick, everyone do the complete opposite of every forthcoming signal!

 

[nbo2]

ROFL

Talking about trading signals contrarian. FXCM have a news service built into their platform, and in that news service is a kind of a trade advisory service where they take on (supposedly) varius trades with some really amazing rationales that on the surface look very plausible. I followed this for a short while and discovered that their entries were very sloppy indeed, their stops pretty wide (presumably due to sloppy entries) and their timing was awful.

I have no idea if they actually put real money on these trades (that is the company providing these so called trading signals and news service - which I presume is a subsidiary of FXCM), or if overall they were actually profitable, BUT I did notice that in the vast majority of occasions, even if they won the trade, it was not without their already wide stop being severely tested.

So, fo a bit of fun for a few weeks, I took to watching their 'trades', waiting for them to plunge in their usual fashion, checked my charts, found a reasonably decent entry point, and contra'd back to just within their stop.

The result were in the order of:

hit rate - over 75%
P/L ratio 2(+):1

Cant remember the exact figures but they were impressive. (actually a touch better than those above...)

I would say though that I had my own research in place anyway and was not toally reliant upon the signals they generated, I had entries that were pretty keen off small timeframes (i.e. 15m downwards) and my stops were pretty tight as well (LOL obviously I didn't want to lose out too much while proving a point...)

But it does show that these signal providers can be useful but maybe not in the obvious ways.

 

[rossored]

Goody gumdrops!

I've just had an email saying that as they have dropped under 100 pips to -7 pips, my trial is being extended until the end of the month - with no obligation! Terrific!

OK folks, get ready to fade whatever order we get next! This time next week we'll all be millionaires!

 

[Anonymous]

They must be really rich to give away free trials, month after month, to show the accuracy of their signals.

 

[rossored]

10.22am SELL eur/usd at 1.2244. Target 45, stop 40

10.27am Email arrives entitled "cancel order" - but doesn't say anything else (no instrument, although presumably eur/usd)

Anyone following this ought to be long anyway

 

[rossored]

No comments from the vendor about the abysmal performance yesterday (ie closing a trade that actually worked!)

8.39am SELL eur/usd at 1.2130
8.51am CLOSE eur/usd at breakeven


This'll be my last post on the system - view this as a great example of how not to do it.

The vendor, in case anyone is interested, is Global FXtrade.

 

[Anonymous]

Interesting.

Month to date: +33 pips
Year to date: +1681 pips

I wonder if the results have to be audited to provide such a valuable service?