Before choosing a Strategy Provider, Strategy Followers will filter the providers based on the different requirements that suit their profile.
One such search filter is “Profitability” which measures the winning rate of a certain provider. If you were to find a provider who has 100% “Profitability” and thus expect 100% win rate, you may be right but the provider may not be profitable per se.
Take this provider below as an example. You can see that his “Profitability” is 100%. This suggests that the provider has 100% win rate. However, you will realise that his growth chart has been in the red for a long period of time.
Looking at his YTD profit in percentage, there are months during which he was in the red and yet his win rate is 100%.
Why is this so?
The reason is because the provider did not close losing trades and allowed them to keep running. Therefore, the “Profitability” can be 100% but his running trades could be in a loss of as high as 52.73% as shown in the Jan 2019 stats.
Therefore, the “Profitability” stats alone are insufficient to show a profitability of a trader. Instead, we encourage traders to use a combination of different factors to select a provider best suited to their risk profile.
Fullerton Markets Research Team
Your Committed Trading Partner
