The strategy provider (SP) we are going to talk about this week is “Happy Forex 2”. I have been following this SP for the past 2 years, using my demo account, and I must say I am impressed.
This SP has been running for 6 years and 5 months, making them one of the longest running SP we have seen on the CopyPip platform. With a maximum drawdown of 29%, I would categorize them as a low-risk strategy provider.
But, what about their average per month you may ask? Isn’t it very low at only 1.12%?
Glad you asked! Let me explain. When choosing a SP, we are always concerned about the downside or capital preservation. As a low-risk strategy follower, they are not concerned about doubling their account (though doubling your capital would be great). Instead, low-risk followers usually look at maximum drawdown and drawdown recovery period.
This is because, they are treating copy trading services as though they are investing in a low-risk product (bonds, fixed income etc.). Do note that copy trading for Forex products is considered high risk, but in relative comparison to other SPs, a SP with low maximum drawdown is considered lower risk than a SP with 70% drawdown. Therefore, a 1.12% average per month is considered pretty impressive.
Let us go straight into this SP’s performance. From the table below, you can see there are years whereby they have losses while some years, on the overall, they are profiting. This is definitely normal. But what impresses me is that this SP has been consistently trading for 6 years and 5 months without stopping. How many traders are there with such a consistent performance for even 1 year?
From their trading statements, we notice that they probably do not set a stop loss. You can check our old Copy Tip videos to find out how we know this. Keeping this in mind, it is advisable to set a fixed stop loss in the advanced settings to protect your capital. Furthermore, this SP also has pips averaging at 47.87, which means that the 0.7 pips commission charge by CopyPip platform to strategy followers will be negligible.
Finally, you can see my account growth from the chart below, after following this SP since October 2019. For a low-risk strategy provider, this SP definitely hit the spot on being one of my choices when searching for a low-risk strategy provider.
Fullerton Markets Research Team
Your Committed Trading Partner
