Reliable Forex Signals?
Reliable, according to Dictionary.com, means “consistently good in quality or performance; able to be trusted”. So, it is easy to believe people looking for a signals service to follow on the Internet are looking for RELIABLE Forex signals. But, when people talk about the “reliability” of a Forex signals service, they can be talking about a few different things.
In this short blog post I want to go over some of the things that can lead to identifying reliable Forex signals…
Forex Signals Win Rate
Some people think “reliable” means having a great win rate. Well, no Forex strategy used by a signals service is going to win all the time. And the truth is, if the signals have a positive risk:reward ratio, the signals can be very profitable with only a 50% win rate.
In my experience, it would be very difficult for a signals follower to stick with a service that only won half of their trades… even if the signals were profitable over the long term. Therefore, look for a signals service that can win between 60% and 75% of the time. (To get a feel for what type of win rate you could expect using a signals service like Forex Investing Live, download this Case Study PDF).
Forex Signals Performance Reporting
Some people think “reliable” means the performance the service is reporting needs to be verified by a 3rd party. For example, MyFXBook.com or FXBlue.com. This would make sure the performance they are reporting is really the performance of the signals.
While this can be helpful, this does not really tell the whole story. It is one thing to know what the signals are producing for the signal provider, and another to know what the signals followers are getting. A lot of time the signals are delivered in such a way that the signals follower can not get similar results.
The other problem judging the reliability of a Forex signals service verified by one of these sites is the fact that the stats are only going to show what is happening in the signal provider’s account. By this I mean, the signal provider’s account is going to have a different starting balance and be using different money management (in most cases), than the follower’s account.
So, you can use one of these sites to see if you are getting the same pip numbers. But all the other stats like percentage gain, how much money made per trade, etc. is going to be meaningless. And in a lot of cases, these stats that are only good of the signal provider’s account can be confusing to look at for the signals follower.
For example, if they look at a trade and see they both made 125 pips profit, but the provider’s account show much more profit in terms of money, they get confused. They fail to take into account the different account balance or money management used. The expectation of getting the exact same results as the service is not fulfilled.
At Forex Investing Live we focus on pips. We don’t talk in terms of percentage growth or money made per trade, because we know that is going to be different for each follower depending on their account balance and money management strategy.
As far as reliability goes and the ability to get the same pip numbers… what better than providing snapshots of our charts with the trade signals AND results on a day to day basis in front of our live, human members?
Ability To Trade The Signals As Close To Perfect As Possible
I lean toward “reliable” meaning you can trade the signals correctly. For example, if the signals are punctually delivered at the same time every day and the results the followers get are similar to what the service reports I would call this a reliable service.
Too often, signals services are set up in a way (lots of Intraday trades, trade management instructions, emails, text messages, unreliable trade copiers), that make it impossible for the follower to trade the signals correctly. This leads to missed trades, or missed trade management and very different results from the service. I would call this unreliable.
So, is Forex Investing Live reliable. I would say yes.
- We have a decent win rate between 65% to 80%.
- We trade along with our member’s and they can see in real time exactly what trades we take, how we manage them and the results we get.
- And, our signals only take 5-10 minutes a day to trade at the exact same trading time each day… meaning these signals can be followed as close to perfect as possible.
If you are ready to see first hand what a reliable Forex signals service looks like… take our Free 14 Day Trial.