Signal Service Review – FX master

Filed under: Learn Forex Trading |

 

FX master is a forex signals service provider that has probably been going longer than any other. This longevity is a massive plus straight away as many forex signals service providers tend to disappear as quickly as they had appeared. To begin with, you can find the website for FX Masters at:

 

http://www.fxmaster.net

 

If you look at their performance section, you will see the number of pips profit they have achieved since 2003. You will notice right way that this year, they are probably heading for their first negative year, with regards to profits (currently -1495 pips).

 

Figure 1.

I have analyzed their results from 2003-2009, and they make pleasant reading. If you look at Figure 1, you will see a chart for the pips gains between 2003-2009. As you can see, the chart moves up very nicely from left to right in a fairly straight line. This includes drawdowns of around 1500 pips, so the current drawdown is perhaps not as bad as it might look.

 

Figure 2.

Figure 2 shows the number of pips captured each month from 2003-2009. What you can see here is that the vast majority of months have been winning ones, with only one or two really bad months where several hundred pips were lost.

 

Although I have not yet joined this service, so I cannot validate the authenticity of these results, the general sentiment in the forex community does seem to be that FX Master are a reliable company. However, at $150 per month ($1800 per year), you would need quite a large bank to make this worthwhile. For example, with a bank of $5000, and trading where one pip is equal to $1, the maximum drawdown would be about $1500 (so 30% of your bank), and your average annual gain would be around $3000. This, minus your $1800 in fees, only leaves you with a profit of $1200, or a 24% rise on your bank. Therefore, a bank of $5000 would need to be a minimum to make this service worthwhile, and in losing years such as the current one, you could be carrying quite a heavy loss.

 

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