Signal | Why is it only rated 3.3 with nice profit data?

Nickname: @AutoProfit Gold

Country :Indonesia

Broker:  #OctaFX Global#

Brief comment:

AutoProfit Gold #1, the maximum drawdown rate is 29.82%, the system's positive expectation value is 0.36 (which means that every $1 invested in this signal will make a profit of $0.36), the profit in 4 months is $1,879, and the annual profit ratio is expected to reach 53.4%. Compared with the entire community, the drawdown and profit data can be ranked at the upper-middle level, but the community has a score of 3.3 (out of 10). Why is this? Is it the backwardness of the scoring algorithm or are there hidden unknown risks in the signal? Come closer to this issue of "Signal Review" and take you to explore the secrets behind the community's popular signal @AutoProfit Gold #1.

Among the 6 aspects of signal scoring, the signal scored low on "Profitability" and "Entry Advantage", with 2.7 points and 1.0 points respectively, which lowered the overall score. So let’s focus on these two aspects of the signal!

Profitability
Talking about profits cannot be separated from positions and points, just like a blind date cannot be separated from a house and a car. In terms of positions, the starting position is 0.01 lots, the range of each increase is 0.01 lots, and the maximum increase is 13 positions. In terms of points, the general take profit is 50 points and the stop loss is 100 points. The profit efficiency of low position * low pip * 3 transactions per day is indeed not high.
However, friends may confused and ask, since the position is so low, why can this signal trigger a drawdown of 29.82%? This is because at the end of September, gold ushered in a wave of continuous declines of $100, and @AutoProfit Gold who long the position was deeply trapped. However, the Palestinian-Israeli conflict in early October raised gold, and @AutoProfit Gold was able to avoid heavy losses. Therefore, from different standpoints, we view the nature of war differently. This is a bit off topic, let’s talk about his entry advantage when trading.

Entry Advantage
The logic is not complicated. XAU/USD long and short hedge, open positions on both sides, and open the first order under a set condition. If the first order successfully takes profit, it will continue to wait for the set conditions to be met to open a new first order. If the first order cannot take profit, then the position will be added continuously by adding 0.01 lots each time, and the orders after adding the position will be withdarwn according to the set average profit of about 50 points. Both the long and short directions are circulating in this way.
The advantage is that under volatile market conditions, you can enter the market with a small profit, but the winning rate is 100%. The shortcomings are obvious: unilateral market positions are getting bigger and bigger, and floating losses are getting more and more. Combining this signal with only XAU/USD, the probability of unilateral market occurrence is extremely high, so the community's "Entry Advantage" score is not high, which is reasonable.

To sum up, this signal wants to use a small position and hedging trading model to make profits in the volatile XAU/USD. However, XAU/USD is too unpredictable, which makes the trading model feel like dancing on the edge of a knife, so the score is not very high!