We designed our service in a way, which allows our traders to use custom risk levels and money management strategies with our signals. As each signal contains the information about historical profitability (win rate), a trader can decide which signals he wants to trade, based on the exact historical win rate and future win probability.
Signals win rate is defined by levels:
- Level 1 – above 80% historical win rate
- Level 2 – 75% – 80% historical win rate
- Level 3 – 70% – 75% historical win rate
- Level 4 – 65% – 70% historical win rate
- Level 5 – 60% – 65% historical win rate
Below are just a few examples of possible approaches.
1. Trading as much as possible, trying to place trades on all signals:
A trader who is eager to make as many trades as possible can trade all signals. More trades will give the potential for more profit, as all signals have above break-even win rate. It needs to be understood that by trading the Level 5 and Level 4 signals, for example, will also produce a more unstable equity curve due to more potential losing trades. However, knowing the historical win rate, there’s a great way to limit the risk with such approach. A trader can decide to trade Level 5 trades with only 1% of his account balance, Level 4 trades with 2%, Level 3 with 3%, Level 2 with 4% and Level 1 with 5%. This way less money is invested in lower probability trades, but still these can be taken and in the long-run will add to the overall profitability. But the risk of losing sequence draining the account will be minimized, since one successful Level 1 trade will cover for four losing Level 5 trades, for example.
2. Trading only the high probability trades:
If you start trading with a bit higher account balance which allows you to invest for example $100 per-trade, then it is really not important to make a huge number of trades (for example, to place trades on all signals). In such case you can take the minimum risk approach and only place trades on Level 2 and Level 1 signals. In case you place only 20 signals in 2 weeks, with 70% win rate, this would give you (14 WINS X $80 RETURN = $1120 – 6 LOSSES X $100 = -$600) $520 bi-weekly return. That’s $1.040 in one month. Of course, when you account balance grows you would be able to trade with $200, $500 or even more per-trade investment, and your profit would be much higher. There is no trade size limit when trading with our signals.
3. Using Exponential Money Management:
In order to grow your account balance as fast as possible, exponential money management can be used. You can place trades on Level 4, 3, 2 and 1 signals and always invest 5% of your highest account balance. If you get a sequence of a few losing trades, you can decide to limit the risk and trade only on Level 2 and 1 signals until you recover, and then continue with Level 4 to 1 signals for a faster account growth.
Other risk and profitability options:
These are just some of the possibilities you can use. The point is that you have full control over risk and profit potential. Once you subscribe you can access more case studies and projections based on different approaches, backed up with historical performance data. You can see what would have happened if you traded all levels, or only the highest level trades, what if you would have invested 3%, 5%, 7% per-trade with exponential approach, or what profit you would get if you used linear money management. There’s lots of data inside, clearly and transparently presented, to help you understand and optimize the risk and profit potential according to your needs. This is a very unique feature of our service that makes it stand well above other providers.