Signal Factory offers a lucrative opportunity for retail traders by offering signals from “profitable professional traders”. It helps to connect retail traders to professional experts in FX trading. The alerts are delivered to your trading platform directly. Since the professional traders use live accounts funded by their money, the service assures low risk and best performance.
Signal Factory: characteristics
As per the vendor the features offered by the company that makes it competitive are:
- The service uses stringent preliminary stipulations that assure better results.
- You can apply the alerts to your existing trading account as no new account opening is needed.
- There are no hidden costs when you register for the service
- The company is not associated with any specific FX broker so your account spreads are not disturbed.
Currency pairs, strategy & timeframe
The vendor does not offer info on details like the currency pairs it works on, the strategy, and the timeframe. We find the lack of info suspicious. Other than mentioning that the professional trader team uses stringent conditions for better results, there is no other info present on the approach used.
According to the vendor, the website shows only the profitable accounts of a provider. The accounts are hidden if the account has a balance lower than its initial amount and is shown only when they are profitable. Further, the vendor mentions that no Martingale money management is used. The company assesses the performance of a provider by the net pips change and not by the percentage, or profit gained. As per the vendor, the lot size is not considered for the performance assessment.
Signal Factory trading performance
A couple of real trading results verified by the FXBlue site are present for the service. Here is a real USD account for the Algobot signals package:
From the above stats, it is clear that the account with a history of 29 days is operating at a loss. A total loss of 14.0% is present. The monthly and weekly losses are 4.2% and 1.0%, respectively. A peak drawdown of 5.3% is present for the account. The profit factor is 0.49 and profitability is 64.9%. From the stats, it is clear that the performance is not as claimed by the vendor. The loss percentage and low profit factor indicate a risky approach and poor performance. As the vendor does not provide backtesting reports, we are unable to compare the results and evaluate the efficacy.
How much does it cost?
The vendor offers four different packages. A Telegram news package costing $49.99 per month, an Algobot gold trade copier costing $199.99 per month, the Algobot signals package costing $99.99 per month, and the Algobot trade copier costing $199.99 per month are the packages available. There is no info provided on the features included with the packages. No money-back-guarantee is present. When compared to other competitor systems we find the prices are expensive.
Reviews from customers
We found three user reviews for this company on the Forexpeacearmy site. A rating of 2.081/5 is present for the service. Here are a few screenshots showing the user testimonials:
From the above feedback, we can see that the users are not happy with the service. They complain that it is a huge scam as the trades are not profitable and they have lost their capital.
Should you use Signal Factory?
|Signals generated by professional traders||The strategy used is not revealed|
|Trading results verified by the FXBlue site||Real trading results show a big loss|
|Lack of vendor transparency|
From our evaluation of the features, performance, and other characteristics, we find that the vendor has verified trading results and boasts of a community of 45,000 traders. However, on analyzing the performance we find the strategy used is ineffective as the account shows big losses indicating poor performance. Furthermore, there is no explanation of the approach used. We could not find info on the company like its founding year, team member details, location, phone number, etc.
Signal Factory promises the best performance and minimal risk with its services. Our assessment of the features and other aspects of the company reveals benefits like the use of professional traders for profitable trades and the real trading results verified by the FXBlue site. Dangerous methods like the Martingale are not used as per the vendor. But after analyzing the trading results, we find a risky approach is used resulting in poor performance. Other shortcomings we noticed in the service include the lack of strategy explanation, an absence of vendor transparency, costly packages, and no refund policy.