Forex $ocial Traders
 

           

Trading Crisis Reveal Real Nature Of Forex Traders And Signal Providers

trading-crisis-traderYou may be surprised, but the best time to evaluate or judge a forex trader is during his bad times when he/she is experiencing drawdowns or losing streaks.  Why? Simply because during such times traders are under real pressure. They have to manage not only their trades but their emotions too.  And that is a real challenge. If you have been trading for real money you know what I am talking about.

So if you consider  following or even copying any signal provider on forex social investment network Zulutrade or eToro OpenBook, watch and analyze these traders during their hard times. Forget any previous performance, just focus on their behaviour during trading crisis.

If they are able to stick to their original trading strategy, you can consider them to be emotionally strong and stable forex social traders and they might be worth following. They will probably not blow your trading account out and they will make you nice money in the long run.

On the other side, if your signal provider changes his trading style during drawdowns, you´d better put your money to work somewhere else. These kind of “traders” tend to overtrade, change strategies, add more trades to losers, use martingale strategies and so on. This list can be very long.

BTW, here are couple of criterias you can use to find a really reliable and long-term profitable signal providers:

#1  Number of Weeks
Forget signal providers with short trading history. They might double account in 20 weeks or so, but they can also blow it away in week 25. It is wiser to copy traders who have been providing their signals at least 1 year or more.

#2  Average Pips
Look for traders who average at least 7 pips per trade. Otherwise, spreads and slippage will eat all your profits.

#3  Max. Drawdown
I would not suggest to copy any trader who´s max. drawdown is more than 30%

#4  NME
This is Zulutrade´s statistical indicator Necessary Minimum Equity. It basically shows how much $ you need to allocate to copy a trader with 1 microlot. I would suggest choosing signal providers with NME less than $150

#5 Best Trade > Worst Trade
This indicates that trader´s winning trades are bigger than his losing trades. It should filter out those traders who like let their loser run.

Zulutrade has advanced search where you can use all these criterias to find your signal providers. Check it out and happy copying.

Just do not forget the golden rule of forex trading:
Past performance is not guarantee of future profits. Never risk money you cannot afford to loose.

1 comment to Trading Crisis Reveal Real Nature Of Forex Traders And Signal Providers

  • SuperSwingTrader

    I think that one main criteria must be if the trader is trading with his own money. I’ve seen many traders gambling on drawdowns cause they can use unlimited margin on their demo accounts, many times they are lucky and recover, but when they are not, they blow up all follower’s accounts with margin calls.