I was contacted by Telmo. His company started a new signal service. There is a real trader(s) calling the trades so I decided to test it for our members. Telmo was very kind and helpful and accepted to provide us the signal service for a period of 3 months so that we can observe and analyze the trades. We agreed not to reveal the name of the company till we have some positive results. As always we do not want you to rush to a service that is advertised as the best service in the world before we test it.
I already installed on my VPS the copier and everything worked without problem. I opened a 5000 demo account. It is not a scalper so the demo platform is not affecting the service profitability.
As soon as installed the software a trade was opened (long eur/usd). I noticed something very interesting at the top right of the screen. The software compares my trades with the trades of the server. Two more trades are active (another long on eur/usd and a long on aud/usd) but because those trades were opened some time ago they were not taken on my platform. The active trade has a stop loss and a take profit of 50 pips.
I will keep informing you about the service results and I will also add a myfxbook link.
I created the link for the myfxbook. I have good and bad news. The good news is that in one day the service took 18 trades all on Eur/Usd. The bad news is that we are 1,15% under water. I am glad with the number of the trades and the focus on just one pair (so far) because it will not take that long to evaluate the service. The trader tries to take advantage of intraday moves since he(she) took longs and shorts during the same day. The average win and average loss are more or less the same and this is also good. I hate to see profits of 5 pips and losses of 200 pips because you know that 2-3 losses in a raw could ruin your account.
There are 6 trades that lasted only few seconds and were closed with a small loss (the spread more or less). I will have to see the purpose of those trades.
Just one day (or one week or one month) are not enough to fully evaluate a system so we will have to wait and see. Telmo promised to participate in our discussion.
My name is Telmo and iīm the founder and director of market operations of the signal service discussed on this thread.
First thank you capsmart to begin this thread related to our services and your reviews/forward test.
Regarding to those fast trades, unfortunately they are not at all part of our trading strategy and were made due differences on prices quotation accross brokers (master versus slaves -clients accounts), although not every clients had those trades and most important is all things are set now to avoid similar issues in the future.
Thank you Telmo,
I am glad our first week ends up with a positive outcome. Till this morning we were under water but the last 2 trades taken today changed the balance of closed trades and we now have a 2% profit for the week. 24 trades in total is a good number to judge the efficiency of the service. 2 more open trades that are also in positive territory.
I usually write my review on Wednesday and Friday but since this is a new service I am looking at it more often. Since Friday the result improved and now we are at a 3.71% profit and 36 closed trades. Most of them on Eur/Usd and two on Aud/Usd. The amount of trades closed is what gives me confidence that this is going to be a good product. It is not a matter of "lucky" trades. The average length of the trades is 12 hours so it is not a scalper and your broker is not going to play games with you.
Right now we have 3 open trades, 1 sell on aud/usd and 2 sells on eur/usd with a minimal profit of a couple of dollars.
The balance between trades won and trades loss is more or less the same (but we had some 6 "mystery" trades that closed with a small loss) so we will have to wait till those mystery trades are lost in the number of total trades (have a larger sample).
The average win is 36,8 pips and the average loss 34,7 pips (a ratio of 1.06) but the average dollar win is 42,21$ and the average dollar loss is 29,74$ (1,42 ratio). How is this possible? Simply because the winning trades had on average a larger lot size. When I asked Telmo why he is using a different lot size (that varies from 0.01 to 0.45 (yes 45 times larger) he explained me that they have a way to calculate the lot size. And for the safer trades they increase the lot size.
The first trade was take the 17th of July, just one week ago, so be patient.
High volatility in market, we had all our 6 trading frequencies at play, thatīs why our lots increased. Although we have closed already more than half the positions and expecting close all today. We will only stay with 1 cycle in market.
I know that is not easy to understand our money management, but is our winning hedge over the market, and risk is controlled and predetermined by the risk profile that investor use.
As expected we have closed all our lower trading frequencies. Currently we have 1 cycle in market, gaining now 80 pips.
Even with this high volatility, we have a very good week and an extraordinary month.
Indeed it was a very good week. We are now at 6.61% profit after 45 trades.
Could you please explain us the principle used for trading and calculating lot size?
Of course we do not expect that you reveal the whole strategy, just the major lines.
Is it a strategy that could work with all pairs? Or just for eur/usd and aud/usd?