Signal Factory Review

Signal Factory acts as a bridge between professional and retail traders who are searching for Forex trading advice. The team purports to provide the best Forex signals. If interested, they can transfer these signals directly to your trading account from their trading platforms. 

The devs further say that you don’t need to be confused when choosing a signal provider. They allegedly make this process simpler for you because of the preliminary conditions they have applied to guarantee better results. In any case, we would want to find out more about the features of the service, including its performance in the market. Then, we can know if it’s worth the hype. 

The vendor of this service is anonymous. There’s zero information about the parent company, developers, traders, physical address, contact details, among other key data. Trying to determine this vendor’s reputation in the market would thus be an exercise in futility. You won’t get anywhere. 

We have listed the other features of this service below:

• You don’t have to open a new trading account as you can use the one you have. However, the way you utilize the signals totally depends on you. 

• The company is entirely independent from any Forex broker. So, joining the service doesn’t affect the spreads in your account.

Trading strategy explanation

Signal Factory applies risk aversion. The vendor explains that they depress any type of martingale money management methods as they measure the provider’s performance by net pips change and not by profit or percentage. In fact, they do not consider trades’ lot size in the performance at all. 

Backtest data analysis

Backtest results are not showcased. We have no idea about how the signals perform on historical data. Subsequently, we don’t know if the above mentioned strategy works or not or even the kind of results it generates over a long period of time. Most of the trading platforms support backtesting. So, it is possible for traders and developers to test their ideas with a few keystrokes and obtain insight into the efficiency of a methodology without risking real funds. In this regard, the team has no excuse for failing to test their signals. 

Live trading data analysis

The professionals behind this service say they trade live accounts using their own money. For this reason, they are obliged to engage in best performing and low risk trading. Ironically, they do not present us with verified results from a trusted site like Myfxbook to prove what they are saying is true.  

Customer reviews

We found 3 customer reviews for this signal provider on FPA. Two of the reviews are negative. These traders say that Signal Factory is a huge scam. Not only is the service unprofitable, but the vendor asks you to pay more to recover the losses made. Another aggrieved customer complains about losing 20k euros after investing in the platform. However, the only happy client asserts that the results generated by the signals have been amazing.  

Review summary

Pros

• Trading strategy is disclosed

Cons

• Zero vendor transparency 

• Bad reviews from traders

• Lack of real trading data

• No backtest report

The only positive thing about this company is that it has revealed the strategy used to find trading signals. We have seen that a lot of key information is missing. As such, the vendor is unknown, and the historical and current performance of the signals is still a mystery. Moreover, some customers have said that the company is a scam. Therefore, you should be careful when dealing with it. 

Rating: 4/10