Q: Does FxMagnetic indicator work on Android or iPhone or can it send alerts to my mobile?
MT4 Mobile App on Android/iPhone does not allow running any custom indicators so FxMagnetic cannot work on mobile. But you can setup FxMagnetic on Desktop MT4 and tell it to send trading signals to your MT4 Mobile App. You can see an example at the bottom of the FxMagnetic installation guide:
Q: Does FxMagnetic software place the trades automatically or I have to follow signals manually and open the trades myself?
The FxMagnetic is an indicator, and it does not open trades automatically. It is not an Expert Advisor.
Q: Can you turn the FxMagnetic indicator into Expert Advisor (EA) a.k.a. Forex Robot?
Technically it is possible to turn FxMagnetic indicator into EA, but I will not do that because I created this product for manual Forex traders. Manual Forex traders observe each entry signal of FxMagnetic but if it does not align with their technical or fundamental analysis they might skip particular trading signals. The EA, in this case, would be worthless because EA cannot read the mind of every trader. If you are into automated trading then I invite you to our webinar at www.forexrobotacademy.com where you can learn how to create EAs yourself without programming.
Q: What results can we expect from FxMagnetic?
When you attach FxMagnetic on the chart it will show previous 100 trading signals and their results on your chart right in front of you. Past performance doesn't guarantee future results but we can expect FxMagnetic indicator to work in a similar way in the future too. Remember, no one can predict the future, but FxMagnetic can make educated forecasts based on the stats of the previous 100 Forex signals.
Q: What's the logic behind the FxMagnetic algorithm?
The FxMagnetic algorithm is scanning the market for extreme conditions and looking for prices that are far above their average or far below their average. In other words, the FxMagnetic algorithm is trying to identify overbought and oversold levels to detect mean reversion.
FxMagnetic has a unique algorithm inside which adapts to the current timeframe and pair. Yes, every timeframe and pair is different, and they need different parameters. FxMagnetic adjusts automatically but also allows you to change its settings manually should you want to. Apparently, after FxMagnetic detects overbought conditions the price can continue moving higher. Likewise, the market price can continue moving lower after an indicator identifies oversold conditions.
IMPORTANT: FxMagnetic does not tell Forex market where should it go next 🙂
FxMagnetic shows where it is likely to go, but note that it's all about the statistics and probabilities. It's like a forecast. It means FxMagnetic will catch losing trades as well as winning trades.
What’s important is to win more pips than lose, and that's the main task FxMagnetic is focusing on when scanning the market for trading opportunities.
Q: Can you give me proof that the FxMagnetic indicator is effective?
Asking if a trading indicator is effective is the same as asking if a fishing rod is effective. The answer is the same - it depends on who is using it.
FxMagnetic shows the outcome of the last 100 trading signals it produced. Those signals are not repainted or modified to trick anyone and they appear exactly as they appeared right from the moment FxMagnetic displayed them for the first time. You can already see there are many winning and losing trades on the chart that happened in the past and you can see the outcome of each trading signals from FxMagnetic. I cannot provide you any other proof that the FxMagnetic indicator works. Look, FxMagnetic is not a "crystal ball" that tells you the future nor it is a holy grail. FxMagnetic will provide winning signals as well as losing signals. What's important is to have more winning trades than the losing trades.
Q: What lot size should I use when trading with the FxMagnetic indicator?
I recommend using 0.01 lot size for every $500 of your capital when trading a single instrument. This means if your trading account is $10,000 and you decide to use $2,000 for trading with FxMagnetic then ($2,000 / $500) * 0.01 = 0.04 lot size per trade. You would have to divide the lot size by the number of pairs you are trading. For example, if you'll be trading 2 pairs then you would divide 0.04 by 2 pairs and use 0.02 lot size for each. We will use 0.04 for a $2,000 capital in this example.
Let me explain my recommendation.
Good traders aim for the best scenario but prepare for the worst scenario. Then, when the Forex market bites you (and trust me, eventually it will bite you), you won't end up with an empty account.
Imagine if you get 10 losing trades in a row (never happened before but no one knows the future), where each hit -55 pips stop loss. That would be -55 pips x 10 = -550 pips loss. For the sake of this example, we'll assume that 0.01 is worth $0.10 for each 1 pip. This means -550 pips with the 0.01 lot size would produce -$55 loss which is -11% of your capital. It's a loss but not a disaster.
Losing 10 trades in a row would be a clear sign that there's something wrong with the indicator and I would have to re-optimize it. If you use a higher risk you would end up losing much more and might not get a chance to try the reoptimized version of the indicator to recover losses.
Q: How much signals will I get daily with the FxMagnetic?
The number of entry signals FxMagnetic gives depends on the market and how the price is moving. There might be times when FxMagnetic will provide two signals per day while later it might provide only one signal per week. If the market does not move much then, FxMagnetic will not give entry signals just for the sake of giving you something. FxMagnetic provides entry signals according to the specific algorithm which is tracking the market price, and it does not focus on how often you want to trade but instead focus where best possible trading opportunities occur.
Q: What success rate FxMagnetic has?
At the time I created FxMagnetic the success rate was 62%. It means 62 trades out of a 100 are profitable and hit the take profit. But it is essential to understand that the success rate always changes. FxMagnetic measures the success rate (winning ratio) based on the last 100 trading signals it gave in the past which means the success rate will vary as FxMagnetic gives you more and more trading signals. The success rate can grow higher or it can go lower.
Q: Why FxMagnetic does not show the last 100 trading signals on my MT4?
Different brokers have different price history data so you might see different entry signals on different brokers. Personally, I use FxMagnetic on FxOpen.
Because of different price feeds the calculations of the FxMagnetic algorithm will produce slightly different results, and you may see somewhat different entry times and prices. Sometimes it is even possible to get entry signals in different directions on two different brokers. If this happens, do not freak out and follow the signals. After all, no one knows for sure which one will end up winning - none of us have a "crystal ball." It's all about the probabilities.
Q: Do FxMagnetic work on all pairs?
For now, FxMagnetic works only on EURUSD and GBPUSD charts (any timeframe). We are working to find new algorithms for other pairs. FxMagnetic indicator for each pair will cost extra.
Q: What return and drawdown can I expect?
Every trader uses FxMagnetic differently and everyone will have different results. If you give two fishermen a fishing rod, then one might catch lots of fish while another one might catch none. No matter what trading indicator you are using, you need to use your common sense for each entry signal as well. There's no answer what return and drawdown you will experience when using FxMagnetic because no one can tell the future. There will be losing trades and winning trades. What's important is to have more winning trades than the losing trades.
Q: After following entry signals from FxMagnetic on a 1-minute timeframe for a few weeks I noticed quite a big difference in results when compared to the result published after the FxMagnetic optimization. Any idea why this happened?
You should never expect the results to be the same as shown on the chart, especially on a 1-minute timeframe. Markets change fast and move randomly on small timeframes.
FxMagnetic stats are based on historical data and are somewhat subject to curve-fitting. We do our best to avoid curve-fitting, but that's almost impossible and it would be the same as never having bad weather when you go fishing.
FxMagnetic stats does not change that much on higher timeframes like H4, Daily, etc. But on H1 and below, stats change and it will be like that forever. No one can guess the future, no one. What we can do is just act on the stats from the past data. It's like going back fishing to the same spot for months as long as you keep catching lots of fish there.
But on 1-minute and other small timeframes markets create lots of waves (also known as market noise) and this can invalidate any trading strategy quite fast.
Remember, success is in the long term. Stick to the higher timeframes. I know you all want action and scalp the market for a quick buck, but that's sort of an illusion. Don't be fooled by a few lucky stories you heard about scalping the market. Scalping is short term luck. If it was that easy and consistent then Warren Buffet would be doing it too.
We reoptimize FxMagnetic every 3-6 months. This gives better stats, but they are never guaranteed and never promise future results.
Q: Do you provide trade copier signals?
We do not provide trading signals from FxMagnetic.
Q: Can I see your trading history?
We do not provide a trading history for FxMagnetic because it would be the same as providing the results of a fishing rod. If you give two fishermen a fishing rod, then one might catch lots of fish while another one might catch none. I am more a programmer than a trader.
Q: Do FxMagnetic gives exact SL and TP as well as the exact entry price?
Yes, FxMagnetic gives exact entry price, stop loss and take profit.
Q: What "Signal Magnitude" and "Signal Amplitude" parameters mean and how they affect the indicator if I change them?
"Signal Magnitude" and "Signal Amplitude" are parameters which allow you to search for better indicator entry signals. But keep in mind that usually, FxMagnetic is fully optimized to show the best entries.