Signal Factory is a company that sources its signals from professional Forex traders. It claims that these professionals trade live accounts using their own money. Therefore, they are keen on attaining the best performance and applying low-risk trading. Once the company ascertains that the signals provided are profitable, it delivers them directly to your trading platform.
Signal Factory: to trust or not to trust?
Before investing in this service, you should be aware that the signals have been proven to be unprofitable in the live market. Some customers have also attested to losing money while using the service.
The company provides several features:
- The signals offered can trade on many currency pairs; AUDCAD, AUDCHF, AUDJPY, AUDUSD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, and many more.
- The system allows you to use your existing account.
- It has no hidden cost.
- Ii ts not affected by any Forex broker. Therefore, joining the service will leave the spreads in your account intact.
- The signals come with the recommended trading currency pair, SL, TP, and the buy/sell order.
The strategy used by this company is risk aversion. As the devs pick out trading signals, they depress any type of martingale money management techniques as they measure the performance of the signal provider by net pips change. They say that they do not take the lot size into consideration while at it.
The service has 4 different pricing plans. We have the Telegram news package and the Algobot signals package that cost $49.99/m and $99.99/m, respectively. Both the Algobot gold trade copier and Algobot trade copier have a similar asking price —$199.99/m.
Signal Factory lacks backtest results. It appears that the company is among the many vendors in this market that have downplayed this test. It’s absolutely crucial to measure the statistics of a strategy prior to asking traders to commit any real money to the market.
Live trading results
The signals have been trading on this account from November 30, 2021, to date. The account was deposited at $10000, but the service has managed to reduce this investment to $8862.22 after making a loss of -$1137.78. A negative profit (-$292.16) has further reduced the equity to $8570.06.
The signals traded on numerous currency pairs, but they mainly used the EURUSD symbol. The results are not good at all. Within 36 days of trading, the service has caused the value of this account to deteriorate by -14.3%. In a month, it makes a loss of -9.3%. So far, only 53.4% of the trades have been successful.
Most of the open orders have recorded immense losses.
Different lot sizes were used, and minute profits were made. Several losses were reported as well.
None of the months has recorded any profits yet.
The signals have generated a low peak drawdown of -12%. But this is no reason to celebrate. The signals have demonstrated a high losing streak, which might cause the drawdown to increase in future.
Vendor transparency is zero in this case. The team behind the service doesn’t introduce itself or even tell us what kind of roles they carry out in the company. The professional backgrounds of the members are not revealed either.
Signal Factory has a 2.081 rating on FPA from 3 reviews. Two of the customers call the company a scam after losing money while using the service. However, there’s a trader who states that the signals have produced amazing results for him.