Sign In   Register


How to read and understand a trading signal's statistics

As traders, at some point the idea of using a trading signals service might have cropped up among a few. The fact that copy trading or social trading has quickly caught up in the trading community only goes to show its popularity.

But beyond the glossy returns, the truth is that not many trading signals work as they are advertised. Within a few months of subscribing to a trading signal that seemed very attractive, traders often end up with losses despite using a trading signals service.

One of the reasons is that you did not pay enough attention to all the statistics that are published by the signal provider. Many traders merely skim through the stats. Evidently, one's attention is caught up with the returns and the profitability of the trading signals service. But the truth is far from it. The actual returns can be disastrous, and for a number of reasons.

This article gives a quick recap of the various statistical measures that will help you to understand a bit more in detail when looking for a trading signals provider. Needless to say, it is not worth your time if you subscribe to a trading signals provider merely based on their advertising rather than showing actual results.

There are many websites these days that offer complete analysis of the various automated or manual trading strategies. Those who do not know how to trade or don’t have the time, can simply invest or subscribe to such a service.

This has become lucrative and sadly, if you have enough knowledge about statistics, the numbers can be easily fudged. Therefore, as someone who wants to use such a service should be extremely careful when choosing the right forex funds manager or a copy trading service.

How to read the statistics from a trading signals provider?

First and foremost, the longer a trading signals provider is in business, the better. This is because when you see a new signals provider with history of less than a year, the results can be quite lucrative. This is one of the reasons why that many of the top trading signal provider on the website tend to have accounts less than, or barely a year old.

Upon closer observation, you will see that many of the top signal providers are just under a year or two years old. This is certainly a big trap that you should avoid, despite the temptation. Not many people like numbers.

However, there is a lot of information that you can gather, if you only spend time to understand what each of these numbers mean. Using a trading signal provider, you can either really make money, or you can just as easily lose money.

The most interesting part about this however is that there are some really good forex trading signals or copy trading providers, if you only know what to look for.

An example below is a snapshot from the website, where you can find many copy signal providers.

01 MQL5 Signals

Example of trading signal providers from

Besides, you also have other providers such as and of course Zulutrade. While the information on the signal providers might differ in format, they all carry the same statistical measurements and ratios.

Therefore, you can easily learn to pick the right trading signals provider by reading and understanding the metrics.

In conclusion, there are many metrics that are involved when it comes to thoroughly understanding whether a trading signals provider is ideal for you or not. In the subsequent parts of this article, we will look at the different metrics individually which will help to evaluate whether you should choose the particular forex trading signals provider or not.

Bear in mind that even after being able to pick the right trading signals provider, you still need to consider other aspects. These can include, the forex brokers as the difference in spreads can play a big role, the leverage and of course the funds that you allocate.

This is the first of the many articles that will provide you with an in depth understanding of the various measurements and ratios that you will come across. No doubt, it takes quite a bit of effort and it is not as simple as choosing a forex trading strategy.

Still, for the amount of work that it takes, you would be able to find the perfect forex copy signal service or a managed fund service that will be just right for you. The only catch is that traders should be able to look beyond the big numbers that can often become a trap.

Read 90 times Last modified on Friday, 04 December 2020 11:27