Are you good at trading, but don’t have enough capital to make a steady income of it? Have you ever considered becoming a forex signal provider? If you are on top of your risk management game and can deliver consistent, marking beating returns it is something you should seriously consider. Becoming a forex trading signal provider is also a lot easier than you may think.
In this quick piece we will discuss the essential ingredients for becoming a signal provider and two very simple avenues to setting up your automated signal service today.
When it comes to providing forex signals, risk management is key
Sound risk management is essential in forex trading and even more so when running a forex signal service. Losing your own money is horrible, losing other people’s money is worse. If you are serious about setting up a forex signal, you need to ensure you always adhere to sound risk management practices and keep drawdowns to a minimum. Investors and traders following your signal will become very worried if they start seeing drawdowns in excess of 20%.
Forex signal providers should deliver exceptional risk adjusted performance
Once you have sound risk management practices in place, you need to focus on delivering your followers exceptional, market beating returns. No one expects you to deliver 100% year after year, but you should be able to deliver a return that makes up for your system’s inherent risk. Generally traders and investors will look to follow signals where the average annual return is a multiple of the maximum drawdown.
Setting up a forex signal from within MT4
Did you know you can set up your own forex signal on the MT4 platform? It is actually incredibly easy. You can even start off with a free signal while you prove yourself and then move to a subscription model once you have earned your stripes.
The MT4 signal model revolves around subscriptions, each trader who follows your signal will pay you a monthly subscription fee for the privilege of doing so. To learn more about the MT4 signal offering, sign up at the mql5.com website and take a look around.
Setting up a forex signal with myfxbook autotrade
Another great way of setting up a forex signal is through myfxbook autotrade. Unlike the MT4 option, you are remunerated based on how much volume your followers trade, so this can be a great option if you are a higher frequency trader. Another good thing about the myfxbook route is that it is completely free for people who want to follow your signal, which means you may be able to onboard a lot more followers. On the other hand, myxfbook manually approves all potential signal providers, so this option may take a little bit longer and you will have to really be on top of your game!
You’re already trading well – why not?
If you are already trading consistently, but just want to make a bit more money without taking on any more risk, setting up your own forex signal is great option. All you have to do is keep doing what you’re doing: manage your risk and deliver those market beating returns!
Source: Vantage FX Blog