The most difficult aspect of social trading usually boils down to identifying and choosing the best possible signal providers (SP) for your account.
The aim of this article is to present you with a general guideline on how to find and choose the best SPs on any social trading platform/network.
Generally, we aim to follow only experienced traders who actually know what they’re doing and not to fall into the hands of lazy inexperienced signal providers whose only aim is to make commissions by trading for you.
When selecting a signal provider to follow, bear the following in mind:
👉 ***Want to earn money with Bitcoin and other Cryptocurrencies without the pain and hassle of learning to trade from scratch? Imagine if you could trade and get regular results with profitable performance! Are you tired of the forex and crypto scams, false promises and games out there designed to separate you from your hard-earned funds? If any of that rings true with you, then STOP EVERYTHING. ProfitFarmers is for you! With their software working as your Crypto Co-Pilot, YOU remain as the Pilot with total control over your money, 100% of the time. ProfitFarmers is a trading tool that combines artificial intelligence with the expertise of veteran traders to deliver high-probability trade plans right into your hands. There’s no need to spend hours trying to figure out what to trade! Thanks to their integration with Binance, the biggest cryptocurrency exchange worldwide, ProfitFarmers executes your trades from entry to exit, you just choose the trade signals you like, pick your entry price and then let your Co-pilot take over the rest of the journey. Stay informed about every step of your money-making journey through push-notifications on their mobile app. Now there’s no need to constantly worry about your ongoing trades, just let your Co-Pilot handle it for you! This could easily be the holy grail of trading tools. Forget paying a guru to trade for you and take a massive cut of what you earn. With ProfitFarmers there are absolutely NO COMMISSIONS OR FEES ON YOUR TRADES. 100% of what you earn is 100% yours to keep. Period. Last quarter, ProfitFarmers produced 1,357 trade plans, and more than 60% of them offered peak gains of over +8%. By joining ProfitFarmers, you’ll never be short on money-making opportunities. Still wondering if this is too good to be true? ProfitFarmers has a 100% Money-Back Guarantee if they don’t deliver profitable opportunities onto their platform. If you are ready to upgrade your trading game and instantly expose yourself to profitable trade opportunities, now is the time. Head to ProfitFarmers now to start trading the easier way, with your very own Crypto Co-Pilot.PS: ProfitFarmers is a Trading Tool. Your money ALWAYS remains in your Binance wallet, never on ProfitFarmers. 100% Verified and Recommended by Valforex.com.
The first thing you’ll want to check out is their profit chart. Choose a SP with a steady and consistent rise in profit over the months and avoid traders with erratic or jagged graphical representations.
Someone with a smooth steady rise in profit could be a good trader to follow after considering some other facts.
The jagged profit graph suggests that the trader may be gambling with his funds with periods of high profits as well as periods of high losses.
Avoid these kind of traders. See image to the right for illustrations.
The next step is to check their maximum drawdown. This simply means the amount of money lost from their account before they start making back the money again.
In social trading, drawdown means a lot and you’re advised not to trade live without fully understanding what drawdown entails.
Please note that drawdown is not an actual loss rather it’s the loss seen before the trader starts making back his/her money when the trade is still open. An actual loss is a real loss seen when the trade has been closed.
SPs with high drawdowns are very risky and dangerous to follow because they may cause your account to go into margin call if you don’t have enough capital to bear the loss.
In this regard, avoid SPs with 100% winning trade because they get high drawdowns by leaving their trades open for months until it returns to profit level.
Ideally, you should learn to follow Signal providers with 20% or less maximum drawdown. A SP who consistently makes profitable trades for months and just a single trade wipes out, say 40% of their total account size is too risky to follow because he has a high drawdown.
Another important factor that helps you choose the best signal provider to follow is the amount of trades executed by the trader. Look for traders with at least a minimum of 100 closed trades.The higher the value, the less likely that the trader’s success can be attributed to luck.
Look for SPs with up to 12 consecutive profitable months with little or no loss in between.
This is exactly how you know professional, trustworthy and experienced traders.
In combination with the minimum trades, also ensure that the SP has been in the social trading platform for at least 12 months delivering consistent profitable trades.
Another relevant way to find out the best traders to follow on social trading platforms is to check the level at which other followers trust them.
This you can do by checking the amount of real money people have invested in order to collect signals from the provider. The more the number of real people following the SP with real money, the better. However, this shouldn’t be your only criteria for choosing the best signal provider.
Also, you can check the profit gained by following the SP. This is usually displayed on the profile page of the SP. When you see many people with profits following a particular SP, it suggests that people like the trader and his strategic method of trading.
One of the ways used to determine the best trader to follow is to check the level of the activity on their account. Follow traders who has actively traded within the last 5 weeks.
This highly varies because some SPs may be long term or medium term traders while most followers are short term traders.
Day traders usually follow SPs who don’t leave their trades open for more than 24 hours.
Follow a Signal Provider who:
Help Us Fight Scams. Please Donate to Support Our Work. No Amount is too Little or too Big. Thank You..
February 8, 2019 By Ghazanfar
The phrase ‘Necessity is the mother of invention’ seems true for Iran. This is because Iran has unveiled its own...
February 8, 2019 By Ghazanfar
In spite of long bear market, Bitcoin transactions per day are increasing. Today the level of these transactions has touched...
February 4, 2019 By Ghazanfar
Although bear market in crypto world is extending, yet many fiat currencies are facing the threat of destabilization. This is...
February 4, 2019 By Ghazanfar
In spite of mix signals from the cryptocurrency world about the future of cryptocurrencies, many countries are planning to test...
February 3, 2019 By Ghazanfar
The idea of Bitcoin adoption as an international currency is not at all new. Over the years, many financial experts...
February 2, 2019 By Ghazanfar
Bitcoin’s entry into the longest ever bear market in history is one of the most burning issues of today. The...
Valforex.com will not be liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the website constitute the authors’ opinion only. Trading Forex, Binary options and Cryptocurrencies involve high-risk and are not suitable for all investors. Online trading in general, may not be legal in your jurisdiction. It’s visitors’ responsibility to make sure these entities are legal in their jurisdiction before engaging in trading activity. All trademarks, images and logos that appear on this site are copyrights of their respective owners and have been used under the Act of Fair Use.