TWILIGHTTRADE, SAFETY DRAGON AND THEIR “HEIRS”
We are very well aware that the latest update was released just a few days ago, but, hell, the last 48 hours have been extremely painful for most of MQL5's subscriber base - within 48 hours 5 of the 10 (many versions of Twilighttrade and Safety Dragon signals) most subscribed trading signals managed to blow up. What are our takeaways from all of this and how reasonable investors should react on this?
From our perspective, movements in currency markets in the recent month have been extremely wierd and driven by large institutional investors. All the stories surrounding possible problems in Turkey and struggling Brexit talks lead to enormously weak Euro and Pound currencies. These were clearly fundamental reasons, which usually tend to shake the "weak hands" of retail traders. In these types of conditions, trading systems with rather poor money management tend to struggle, and this happened here as well. Not only the most popular trading systems were tested, but one of our own systems went through the fire and, as we see it, passed the ultimate test.
When we compared Twilighttrade trading signal with Safety Dragon signal Mid-August Outlook, we highlighted the possible risks with both of these systems, however, we did not expect for both of these to blow up simultaneously within 48 hours. Did we miss anything? - We honestly don't think so and we still believe that such outcome could not be predicted, given the historical behaviour of both signals. Despite that, we previously mentioned that the recent moves in EURUSD/GBPUSD/USDJPY pairs were associated directly with fundamental reasons, rather than technical analysis. Because of that, these were the perfect conditions when technical trading was struggling and money management became so much more important; unfortunately, both of these signals (as well as their duplicates) didn't pass the ultimate test: