Are Foreign Exchange Signals Service Pip Results All That Are Important?

Using a Forex signals provider is a simple solution for people who don’t want to go through the long learning curve of learning to trade currency, or simply don’t have the time to sit in front of the computer looking for trades. And when seeking a Foreign Exchange signals provider to follow, it is the Forex signals proof that is most important. Obviously, you want to follow a successful signals service that can prove the results they claim really are the results they are getting.

Does Higher Pip Numbers Mean More Money?

In most cases, signals service results are given as a number of positive or negative pips. For this reason, many people think more pips naturally means more profits. Unfortunately, just knowing the number of pips is not enough information to determine the profitability of the trades.

The pip value is going to be determined by your account balance, the stop loss value and the risk management system used to calculate the lot size to trade. It is very possible a signals service reporting 200-300 pips a month can be much more profitable than a signals service showing 1000 pips a month. Make sure to understand how stop loss size and risk management effect the profitability of the service before making a decision based only on pip values.

How much a pip is worth is determined what lot size is used when placing the trade. The lot size will be different for each trader depending on their account balance and the risk management formula they use to determine lot size. You need to evaluate Forex signals services while taking this into account.

Let’s say you are placing a trade with a 20 pip stop loss. The lot size you are going to use is going to be different than if you were trading with a 200 pip stop loss. In this example, if you were to use 0.1 lots, you would be risking about $20 on the first trade, but that would equal $200 at risk for a 200 pip stop loss trade.

The point I am trying to make is that pip values alone are not enough information to determine the profitability of a Forex signals provider. You really need to dissect the trading parameters to determine how profitable the trade signals can be. Only then can you make a wise choice about which Forex signals provider is right for you.

Set And Forget Forex Signals has been producing 200-300 pips a month. While this might not seem like a lot, it is quite a profitable way of trading. Instead of just reporting pip numbers, this service provides risk management case studies so you can see the gains or losses using different money management strategies. It might surprise you to see how much you can make with 200-300 pips a month.

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