Myths and realities of Forex profitability
Forex trading platforms keep pushing aggressive ads. Brokers, signal providers, EA developers and Forex schools compete by promising higher and higher rates of return: +100% per week, 1000% monthly, +300 pips daily. Faced with this, it is very difficult to make the right choice. What is possible? What is even probable? Forex traders need to know.
The best way to start gaging the effectiveness of a Forex trader is by looking at public information from professional and successful trader accounts.
We have that information. We got it by using three independent third party verified sources:
• Myfxbook trading strategies and systems rating (myfxbook.com)
• Top PAMM accounts from the Alpari ratings (alpari-forex.com/en/investor/pamm4/pamm_account/rating/)
• Top PAMM accounts from Instaforex rating (instaforex.com/pamm_monitoring.php)
We analyzed 300 accounts to identify patterns. By reviewing the different dynamics of the best accounts we found several vivid regularities typical for almost any professional trading no matter what the system or strategy.
1. 100% for the top 100. Average profitability of the best PAMM accounts and trading systems are between 100% and 150% per year.
2. No failures have no history. Any account with more than 1-year history has one or often more disastrous months per year. Sometimes it can be 3 or even 6 drawdown months at a stretch, even though these traders were some of the most successful ones.
3. Stability vs. profitability. The more stable the yields, the less the total profitability over a long period. This pattern was hard to see at first, but it became clear as we studied the bigger trends.
4. Music charts. TOP of the best traders and systems ratings are less stable than music charts. Trading systems come and go real fast. And there are few successful accounts with more than 12 month of history. Stable and profitable systems in drawdown periods lose their ground. Unfortunately, in their place often come traders who have achieved only a one-time success.
5. Even the Titans lose. The stability of PAMM accounts or trading systems at the TOP of the ratings for the year does not guarantee it’s unsinkable.
The practice of decades of Forex trading shows that you should not hope for a consistent profit from month to month in any rational strategy, or a yield of 300% per quarter. If you are looking for Forex signals by expert advisers, make sure they have more than a year of history. Do not let yourself be misled by one-time successful performances or fantastic promises.
We wish you successful trading.
Check out Forex Jingle as a trusted Forex signals provider with a real and successful trading system.
Forex trading platforms keep pushing aggressive ads. Brokers, signal providers, EA developers and Forex schools compete by promising higher and higher rates of return: +100% per week, 1000% monthly, +300 pips daily. Faced with this, it is very difficult to make the right choice. What is possible? What is even probable? Forex traders need to know.
The best way to start gaging the effectiveness of a Forex trader is by looking at public information from professional and successful trader accounts.
We have that information. We got it by using three independent third party verified sources:
• Myfxbook trading strategies and systems rating (myfxbook.com)
• Top PAMM accounts from the Alpari ratings (alpari-forex.com/en/investor/pamm4/pamm_account/rating/)
• Top PAMM accounts from Instaforex rating (instaforex.com/pamm_monitoring.php)
We analyzed 300 accounts to identify patterns. By reviewing the different dynamics of the best accounts we found several vivid regularities typical for almost any professional trading no matter what the system or strategy.
1. 100% for the top 100. Average profitability of the best PAMM accounts and trading systems are between 100% and 150% per year.
2. No failures have no history. Any account with more than 1-year history has one or often more disastrous months per year. Sometimes it can be 3 or even 6 drawdown months at a stretch, even though these traders were some of the most successful ones.
3. Stability vs. profitability. The more stable the yields, the less the total profitability over a long period. This pattern was hard to see at first, but it became clear as we studied the bigger trends.
4. Music charts. TOP of the best traders and systems ratings are less stable than music charts. Trading systems come and go real fast. And there are few successful accounts with more than 12 month of history. Stable and profitable systems in drawdown periods lose their ground. Unfortunately, in their place often come traders who have achieved only a one-time success.
5. Even the Titans lose. The stability of PAMM accounts or trading systems at the TOP of the ratings for the year does not guarantee it’s unsinkable.
The practice of decades of Forex trading shows that you should not hope for a consistent profit from month to month in any rational strategy, or a yield of 300% per quarter. If you are looking for Forex signals by expert advisers, make sure they have more than a year of history. Do not let yourself be misled by one-time successful performances or fantastic promises.
We wish you successful trading.
Check out Forex Jingle as a trusted Forex signals provider with a real and successful trading system.
