Signal Factory offers trading signals through social media channels and automated trade copying. The company does not trade using a martingale strategy and lists the portfolios of profitable traders. Traders can use the broker of their choice to follow the executions. We will review the product to see if the signals are worthwhile and whether investors should purchase them.
Signal Factory trading strategy
The developers are not transparent on their strategy to trade the markets. We had to go over their live records to see the game plan. From there, we can see that trading is done on gold with no stop loss attached to most positions. The exits are virtual, and the martingale strategy is used to cover all losses. This goes against the claim made on the website about zero of lot multiplication in their game plan.
They target 10 to 20 pips on each trade, but the losses are not defined. There are positions closing with negative 130 pips. The average trade length is 14.2 hours, pointing to a day trading methodology.
Signal Factory features
The signals have the following features:
- There is no use of martingale
- Trades are only available from profitable traders
- A community of 45000 traders
- There are no hidden costs
Price
There are multiple options to purchase the subscription service. Traders can get the Telegram news package for $49.99. The algobot trade copier is available for $199.9, while the signals are $99.99. The billing is done each month, and there is no money-back guarantee.
The asking price for the signals is high if we compare it with the market standards.
Signal Factory backtesting results
The company does not provide backtesting records for its signals. We searched the whole website but could not find any information. Without any historical testing we cannot judge how the signals will work in the future.
Signal Factory live trading results
We have live records on FXBlue that show us information about the product’s performance from November 10, 2021, until the current date. The system made a total growth of 21.7 %, with a drawdown of 21.8%.
The winning rate stood at 83%, with a profit factor of 1.06. The average profitable trade was $16.99, while the worst was -$75.67 in a total of 1362 trades.
The longest trade was 247.24 hours in duration, with an average winning trade standing at 9.28h and loss at 37.2h.
Observing the floating P/L, we can see that at multiple points, it goes into a drawdown value of -$1000. This adds to the drawdown value various times.
Signal Factory reputation
Traders on Forex Peace Army rate the service with 2.081. There are a total of three reviews present where one of the investors says their positions are not profitable at all. They want traders to pay more for their losses, and if someone complains, they immediately stop their account.
Another trader says that using their account management services, they have lost 20000 euros. He advises others to stop following their channel and never pay any money for it.
Signal Factory review summary
| Strategy | 2/10 |
| Functionality and features | 6/10 |
| Trading results | 4/10 |
| Reliability | 3/10 |
| Pricing | 4/10 |
Conclusion
Signals Factory is not transparent on multiple factors. There is no information on the strategy that they trade with. The company states that there is no martingale involved, but their live records show lot multiplication in trades. We cannot find the developers’ names and their whereabouts on the website. The reviews on FPA also highlight that the service is not profitable.
