Signal Factory

Signal Factory

Signal Factory is a signal provider that promises to give its clients profitable trading ideas. However, the vendor is not the one who generates the signals. Rather, signals are obtained from professional traders who trade live accounts with their own money. The signals are then delivered to your trading platform directly. 

The team behind this service is not introduced in this presentation. Therefore, we know nothing about the names of the people who run it or their professional experience. 

Signal Factory at a glance

Price$49.99, $199.99, $99.99
Trading platformsN/A
Currency pairsAUDCAD, AUDCHF, AUDJPY, AUDUSD, CADCHF, CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURNZD, EURUSD, GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPUSD, NZDCAD, NZDCHF, NZDJPY, NZDUSD, USDCAD, USDCHF, and USDJPY
StrategyRisk aversion
TimeframeN/A
Recommended depositN/A
Recommended leverageN/A
Money managementN/A

Signal Factory functionality

The additional features of the service as described by the vendor can be found here:

  • The signals include the buy/sell price, the currency pair to trade on, and TP and SL levels.
  • You don’t have to open a new trading account. Use your current one. 
  • It does not have any hidden costs.
  • It is independent of brokers.
  • The system guarantees better results. 
  • Customer support is present.

Signal Factory trading strategy tests

The company uses risk aversion as a trading strategy. What the team does is to depress any kind of martingale money management techniques as they study different signals they obtain from professional traders. To determine which signals they are going to supply to their clients, the devs measure the provider’s performance by net pips change. The lot size used during trading is not considered at all when assessing the performance of the providers. 

Backtest results are unavailable. This process is invaluable as it predicts how a strategy will work in a live market. The vendor needs to inform us if they have backtested the signals they receive from their providers or not. We need to know how they performed under historical data, and if the test wasn’t done, it is paramount for the company to explain why. 

What about Signal Factory live trading results

Live trading stats
Live trading stats

This is a real USD account on FXBlue that is applying the signals to trade. The account started with a balance of $10000, but after trading for 45 days, a loss of -$2069.58 has been reported. So, we have a current balance of $7930.40. 

How trades performed
How trades performed

The signals have a win rate of 51%. So far, they have generated a peak drawdown of -21.3% after making an average loss of -3.5% weekly and -13.7% monthly. The profit factor, which is 0.22, indicates that the service is not lucrative. 

Trading history
Trading history

The signals have led to many losses. 

User reviews

We found 3 reviews for this signal provider on FPA, but as you can see below, one of them was written in 2014, and the remaining two in 2020. At the time, the traders accused the company of providing unprofitable signals, though one customer was of the contrary opinion. Anyway, we can’t know for sure how traders currently feel about the service by relying on only three reviews.  

User reviews on FPA
User reviews on FPA

Signal Factory Review Summary

Signal Factory
3 5 0 1
The signals support multiple currency pairs, and the vendor takes the time to explain the strategy used to generate the signals. Though live trading results are shown, they are not good as of now. Also, since customer reviews are insufficient, we don’t know how customers who are currently using the service feel about it.
The signals support multiple currency pairs, and the vendor takes the time to explain the strategy used to generate the signals. Though live trading results are shown, they are not good as of now. Also, since customer reviews are insufficient, we don’t know how customers who are currently using the service feel about it.
3/5
Total Score
  • Functionality
    3/5 Neutral
    The vendor mentions some of the features they provide for those who subscribe to their services.
  • Trading strategy
    3/5 Neutral
    The professionals explain how they source their signals and what criteria they use to select the signals they will send to clients.
  • Live results
    2/5 Bad
    From the trading results, it is apparent that the signals can generate undesirable outcomes for the user.
  • Customer support
    3/5 Neutral
    The only channels you can use to contact customer support is through the company’s Facebook and Twitter pages, as well as its Telegram channel.
  • User reviews
    2/5 Bad
    There are only 3 customer reviews for the service, which are not enough to help determine how customers generally view it.

The Good

  • Can trade on multiple currency pairs
  • Trading strategy is mentioned
  • Live trading results are available

The Bad

  • Backtest results are not provided
  • Negative customer reviews
  • High losing streak
Total
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