FxPro, the Forex broker operating out of the UK and Cyprus, has recently boasted a great proportion of profitable investors on its social trading platform SuperTrader, raising the question on how it picks the strategies that offer such success to copiers of signals.
When the revolutionary network started its operations in October 2013 all we were aware of was that the trading leaders were supposed to meet certain benchmark performance criteria but we had no idea of what exactly these are. Well, there is the end to our curiosity in this respect as the company has decided to be more transparent about the conditions to which trading leaders should respond and has published the criteria for becoming such a leader on SuperTrader.
The first thing that each trader should do to have his/her strategy on the platform is to apply, answer a raft of questionnaires and pass a set of interviews with FXPro's Business Development team. This is aimed at making sure that the description of the strategy is accurate, as well as to check the background of the trader. This rigor when it comes to checks of one's track record as a trader is seen only on OANDA's Trade Leaders Program
- the refurbished Currensee platform.
Second, the strategy proposed passes detailed backtests and simulations of future performance. The aim is that:
- maximum drawdown does not surpass 50% of equity;
- the ratio of unrealized loss to balance is not more than 20%.
These two criteria are similar to the ones that trading systems on AutoTrade, the signal-copying service of Myfxbook, should meet. But AutoTrade has more requirements, including ones for average pips per trade and for average trade time.
Interestingly, trade leaders on SuperTrader have to be careful about the maximum size of the account balance – it's at $50,000. Any leader cannot deposit extra funds in the account without the consent of the Business Development team. This, fellow traders, is one more mechanism of filtering malicious trading strategies, as a strategy may incur losses but compensate with frequent deposits, or simply artificially inflate the balance to attract more investors.
Despite the strict conditions with which the trading leaders on SuperTrader should comply, the network is friendly enough with 33 strategies currently available. That's more than the 17 leaders offering signals on OANDA's TLP and the 22 systems on Myfxbook's AutoTrade. Apparently, FxPro is on the right path.
FxPro is an award-winning Forex broker providing retail and institutional offerings to clients in 150 countries. FxPro offers trading access through a range of platforms including the innovative ECN platform – FxPro cTrader – supported by industry-leading market news and outstanding levels of customer support 24 hours a day. FxPro’s goal is to be the world’s preferred Forex broker and it has become the first choice for Forex traders needing user-friendly market access and superior trading infrastructure.
With offices in the United Kingdom, Austria, Cyprus, France, Russia and Spain, FxPro Financial Services Limited is authorized and regulated by the Cyprus Securities and Exchange Commission, under license number 078/07, and operates under the EU Markets in Financial Instruments Directive (MiFID).