Trade Copier Discussion

These guys took an absolute hammering this week. General trend was bearish, but they insisted to go long on EUR. Every time the price went against their position, they added more long positions in an attempt to scalp back some small gains, hoping that the trend has ended. Having discussed this with other professional traders (including institutional traders), this type of strategy in the longer term will fail since they are taking on low probability set-ups. Today, they entered over 100 positions buying predominately EURUSD and EURJPY, while both fell for 100 and 150 pips respectively. I am subscribed to their trade copier system (since Feb 2013) but using only 0.01 lots to try them out and my account has lost almost its total profit since I started in one day.

I would like to know what other experiences has been had, particularly with those that have been following/using the system for longer.

You should try this one frarod---> https://www.myfxbook.com/members/superscalper/reactor7/521323
Stoploss and not martingal, not against trend. If the stoploss is hit its finish. No other position to recover.....
Just check ;)

yeah. just started with this signal and got hammered. glad i wasn't running it over leveraged, 1200 pips lost in one day. close to some kind of record i think.

superscalper is rubbish. stop spamming.

Two months ago they were bragging how they had made over 1000 pips in a month, tell your friends how great we are. Now a 1200 pip loss in one day and are supposed to think this is normal trading risk.

I guess that's always the risk with taking manual trading signals. You don't know what the mentality of the trader is truly like.

Thanks for the feedback.

Basically I think their strategy does have 'some' merit, but then I believe all strategies work if you have the right market timing and good money management. However their risk/money management is not great. Hence eventually they were found out. I like the idea of having a trade copier since I have a very busy lifestyle and don't have a lot of time to watch the market and trade myself.

Since I started with Pip-Factory in Feb this year, I had grown my account by almost 15% and hence covered the cost of the subscription and made some money. But this had some challengers. Initially I was over leveraged as it was a bit difficult to calculate what my custom lot size should be for a 1-2% risk when they can open anywhere from 3 to 15 positions. So eventually I settled on a 0.01 lot size and worked out my own account management strategy.

I spend about 1hr in the morning to review the markets (news, opinions, etc) and key Fib levels. I found out that they tend to enter trades about the same time every day, so with my account linked to MT4 iPhone app, I could review their entries at particular times of the day. If I liked the entries I added my own positions, if not I closed the copied positions. This means that I am using Pip-Factory to confirm my analysis and trigger the trades and I manage much of it from then on at periodic times during the day.

As for the day of the 1200 pip lose, I had closed most of the copied positions during the day. Those that I didn't get to meant that I lost only few dollars. So basically I managed to escape much of the bloodbath.

I've contacted Pip-Factory and they are very humble about what had happened and are reviewing their strategy and will provide information on changes in a newsletter due soon. However, I'll share part of the email I sent in hope that they get better for both theirs and my benefit:

'Thanks for the response Manuel.

.....Those that are using Trade Copier are in fact putting trust in Pip-Factory’s strategy. For me that means trying to understand the logic, not just the results. Understanding the logic, instils that trust that even in adverse days, we can move forward together. If the logic is sound, then the results will take care of itself over the long term......

......As for the other day with EUR, I was expecting that once a number of stop losses had been hit or that 2-3% of the account was lost, that it was clear that applying the strategy to the upside was incorrect, and consideration to maybe applying the strategy to the downside. If a decision was made here based on suitable analysis, and the strategy adopted for a falling market, this should have resulted in recovery of losses and even potential gains. As you may imagine, it was frustrating for me to see new entries against the trend and what “seemed” to be a more desperate attempt to recover as the day progressed, especially when my own analysis (from the chart sent to you) suggested the change.....'

I'll be sticking with Pip-Factory for a couple more months and review then if there is further value to continue. I'll keep posting my experiences.

I've been watching the live trades foe a couple of weeks now. I'm pretty convinced that they are order flow trading. They seem to be able to enter the market just before there is an increase of activity. The challenge with order flow trading is that some large traders will enter the market with a small open position and then place large orders higher/lower to the open position to drive price the open position price towards the order price. Before it reaches the order price, they cancel it and close the open position at a profit.
Its market manipulation based on price moving towards strength in the market. This type of activity creates highly volatile markets, which were the days Pip-factory had some large losses.
Pip-factory had also suggested as a risk mitigation strategy, that when the account has grown by say 20%, that the profit is taken out. Looking at the chart, if this was done, then it was likely that someone would have recovered almost all their original investment (~90%) prior to the 1200 pip losing day. This is a good idea since once the investment is recovered, your trading with someone else money.

Pip-factory has made some significant changes to the way they trade that reduce the risk. There is a alot more trades that are closed at breakeven. Basically they enter a position. If it goes against them, they enter a 2nd position. If the price gets back to where the 1st entry, they close that out at breakeven and close the 2nd at a profit. You don't make as much money, but the gains are consistent with few losses.

This account is a big joke :))

You want good investment ? You should watch my performances on myfxbook

You don't know trade really.... 3 times you lose all your profits on one day. I think all your customers are big birds