In recent past I was following a signal provider and they were going good from last few months but in july they go wrong horribaly and almost destroyed their good live statistics.
Because most of these guys trade with martingale-type money-management rules, so once in a while it blows in their face big time.
that is because u are a small trader. Your job as a small trader is to subscribe 3rd party educational/system vendors and lose. Keep reloading your account until u are dead broke. More than 90% of small traders lose! They just lose! http://www.bloomberg.com/news/2012-...-seen-profiting-at-small-firm-expense-1-.html
I've never subscribed to a "signal provider," but it seems they appear... advertise their "service"... operate for 6-24 months .... then suddenly disappear. So I'm curious... who was this particular signal provider?
I too am curious as to the allure for signal providers is it the ease of not having to be in front of the desk all day monitoring the positions? OP, How much do you pay or did you pay for this signal provider and was it profitable enough to cover monthly cost?
No they are not using martingale strategy but they are using very detailed technical analysis and also fundamental analysis. What I observed is that they dont close losing positions in time.
What you observe through tens of trades is nothing vs what it takes for a system to be successful long-term. So even if it seems that having a tight stop might have work better over the past N trades, it doesn't mean it would be the case on a larger sample set (and, most likely, it is not). That said, most of the signal vendors with a nice smooth equity curve are in fact using low-reward / high-risk with add-ons (again, martingale-type strategies), and once in a while it blows in their face, either as a large drawdown, or as a complete wipe-out.
No they are using good risk to reward ratio and there is no martingale involved. The only thing went wrong was holding the losing positions for too long.