Wells, Somerset -- (SBWIRE) -- 06/14/2012 -- Many forex traders like to use third party signal providers to help them find winning trades, but according to this article that has appeared on the Online-Trading-News.com website, it can be just as profitable to reverse trade those forex signals provided by losing forex traders.
This is now an option thanks to automated signal services such as Zulutrade which hosts thousands of different signal providers on their website.
Users can open a free account, configure their broker account to work with Zulutrade, and then trade the signals of whichever signal providers they want, completely free of charge. When a signal provider enters a trade (and closes a trade), this position is replicated in the user's trading account as well.
There are lots of profitable signal providers on this site, and users can look for the most profitable ones if they so wish, using vast amounts of data and trading records to help them choose.
However according to many Zulutrade reviews, reverse trading is possible on this website as well. In this instance users just need to find those providers that consistently lose money (either unintentionally or deliberately) and choose to reverse trade their signals.
So if a signal provider ends up losing 200 pips in a given month, for example, and a user has decided to reverse trade their signals, they will end the month 200 pips in profit.
Plus if they choose to reverse trade the signals of 10 more losing traders and each of them loses an average of 100 pips, then this would add up to an additional profit of 1000 pips for that particular month.
Of course there are risks attached to reverse trading, as there is with any type of trading. Just because a signal provider knows that he has a losing trading system on his hands, and is happy for users to reverse trade their signals, does not mean that the system will not be profitable at some stage.
However there is an option for users to enter their own stop loss limits to control losses, and drawdown can be controlled by the user rather than the signal provider if they so wish.
More information about reverse trading, and how traders can profit from using the Zulutrade website, can be found at:
http://online-trading-news.com/2012/06/14/why-reverse-trading-poor-signal-providers-can-yield-big-profits/
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