10 Checks to Verify Trusted Myfxbook Accounts
Are you looking for reliable tests on trading robots or signals? To avoid mistakes, familiarize yourself with these 10 key signs to spot reliable Myfxbook accounts.
Have you ever heard of Myfxbook? Introduced as a tool to help automate the process of forex technical analysis, Myfxbook has developed into a social trading platform where users can publish their trading records and performance statistics.
It allows trading signal providers to use Myfxbook as a platform to share their results and promote their services. Trading robot (EA) sellers can also use the platform to their benefit. As such, many traders rely on the Myfxbook platform before choosing a signal provider or using a specific EA.
The challenge of using Myfxbook arises from identifying trustworthy accounts. Without adequate guidance, novice traders will have difficulty sorting through the numerous portfolios. To avoid choosing blindly, pay attention to these 10 key aspects to ensure the authenticity and credibility of Myfxbook accounts.
1. Track Record Verified
Verification of an account track record is important for identifying the authenticity of a Myfxbook account. If it is already verified, it means that all track records (history, open trades, open orders) of the account are consistent with the data received by Myfxbook from the broker's server. For your information, a Myfxbook account can be linked with a broker's account via an investor password.
If the Myfxbook account is not connected to the broker's account, the track record will not be verified and will be marked with a cross (x) next to the label "Track Record Not Verified". Conversely, if the Myfxbook account is already connected to the broker's account and the data has been confirmed, a green check mark will appear next to the label "Track Record Verified".
It should be noted that old portfolios that have previously been verified may lose their "Track Record Verified" status. This can happen because brokers always delete historical data from time to time. For example, trading portfolios' records from 2012 can no longer be confirmed because data from that period is no longer on the broker's server.
One more thing to note here is that the "Track Record Verified" status applies not only to real account trading records, but also to demo accounts. So if you only prioritize portfolios that have been proven in real accounts, don't miss the next points.
2. Trading Privileges Verified
Trading privileges are an indicator used to display the ownership status of a Myfxbook account. Verified trading privileges means the account owner is a trader who actually conducts their own trading and can prove that the portfolio is their own results.
However, if the Myfxbook account owner is unable to activate the green check mark next to "Trading Privileges Verified", there is no guarantee that the displayed track record is their own performance. It's possible that they are just using the investor password from another trader with a good track record.
Thus, having just the investor password is not sufficient if a genuine Myfxbook account owner wants to get verification for trading privileges. In this case, the account owner can choose one of the following ways to prove their ownership status:
- Open a pending order with the key provided by Myfxbook.
- Change the investor password with a specific one that is automatically generated by Myfxbook.
3. Real Broker
In addition to track record and trading privileges, an aspect that can mark a trusted Myfxbook account is the broker's name. Believe it or not, the broker's name on Myfxbook can be faked so it does not always reflect the actual broker. This situation can occur because, fundamentally, Myfxbook works by verifying trades on MQL4 servers. If an account owner can set up a fake server to resemble MQL4, they can use it as the broker's identity on the Myfxbook platform. If the broker itself is not genuine, then its track record is certainly very doubtful.
The good news is, Myfxbook can identify fake servers that are not associated with genuine brokers. Accounts that do not use genuine brokers are labeled as "Other (MT4)". In addition, the green checkmark (verification) will not appear in the track record and trading privileges sections.
4. Real Account
Successful trading systems used on a demo platform do not always reflect the same results on a real account. Certain conditions like spreads and slippage can't be accurately reflected on the demo account. In addition, an account that only provides a track record in a demo account may not have a strong mentality to manage a real account.
Because the risks are not real, demo account users will be very willing to take high risks. But once they start trading in a real account, they usually tend to be very cautious because of the real risks involved. And so, track records in a real account are definitely more credible than on a demo account.
The most practical way to know the characteristics of a Myfxbook account is to open the "General" tab, as shown in the image below:
5. Gain and Absolute Gain
To understand this point, you need to understand the basic difference between gain and absolute gain (abs. gain). Gain indicates the growth of the account equity since the initial deposit. Whether the growth comes from profits or additional deposits, gain will calculate it all. On the other hand, absolute gain is the ROI (return on investment) that only calculates the account equity growth from profits.
When considering a trading portfolio on Myfxbook, absolute gain is usually considered more important because it can better reflect the level of profitability. In addition, gain is easier to manipulate because the account owner simply needs to make additional deposits to increase their value. On the other hand, they would have to increase profits In order to raise absolute gain.
Therefore, Myfxbook accounts with gain significantly larger than absolute gain should be subjected to suspicion. The account may be manipulating gains by adding a large deposit without being able to balance it with profit growth.
A trusted Myfxbook account should have a balanced gain and absolute gain. It would be even better if both data could reflect the same figure, or if the absolute gain surpasses the gain.
6. No Custom Start Date Notification
Did you know? The Myfxbook platform has a custom date feature so account owners can choose specific moments where their track record shows outstanding results. When the trade results are not profitable, they can hide it from the public by excluding certain dates. Therefore, the displayed performance will not truly be real because it does not reflect the account's overall track record.
You can recognize such a suspicion by the presence of a custom start date label. If the notification appears at the top of the platform, then the displayed track record may not be credible after all.
Below is an example of a track record that has been polished with a custom start date:
You can still see the "original" track records from such an account. Just use the "Custom Analysis" feature in the top right corner, check all options in the "Timing" tab, and then click "Analyze".
After checking with "Custom Analysis," the resulting gain from the account above turned out to be very small, and the absolute gain deficit is actually greater than -2.69%.
7. Small Drawdown
Dubious Myfxbook accounts can manipulate the equity record by leaving positions open continuously. This is because the "Equity" record on Myfxbook only takes closed transactions into account. So if you want to see the actual returns, open the "Drawdown" tab in the "Chart" section. As a note, the "Drawdown" information in the "Stats" column is considered less relevant because it reflects the "maximum drawdown" and is rarely updated.
The size of the drawdown determines the loss of the account. The losses calculated do not only come from closed positions, but also current losses from all positions, including those still floating. As a basic rule, the drawdown threshold should only be around 30%. If the drawdown exceeds 30%, it is safe to say that the system is extremely risky.
8. Performance Statistics
The "advanced statistics" column displays the summary of the account's trading performance, so you can practically assess their strategies based on the following criteria:
- Average Win and Average Loss: The average of the total profit and loss divided by the number of positions.
- Profit Factor: The ratio of how many times gross profit exceeds gross loss.
- Expectancy: The expected profit figure from each position.
A trusted Myfxbook should have a greater average win than average loss, and a profit factor above 1.0.
9. Account Experience
Quite a lot of amateur traders make big profits just after opening a real account. However, due to the unpredictable volatility of the forex market, many of them experience significant losses shortly after. Therefore, the longer a trader can survive, the more proven their skills will be.
Following this idea, you can also verify a reliable Myfxbook account from its length of existence. If it has been able to maintain consistent profit growth for more than a year, then the account is considered trusted.
10. Trading History Displayed Transparently
Another aspect to determine a reliable Myfxbook account is the trading history. An honest and reliable account should not hesitate to display their trading history in detail. On the other hand, accounts that often make fatal mistakes usually try to cover up their poor records by hiding certain statistics.
A Myfxbook account is considered more reliable if it can display the "Trading History" from the opening of the account to the most recent date. However, note that it's normal for signal providers to hide their real-time data, as it is valuable information that is usually "sold" to their customers.
The 10 checks above can provide a useful guide to help you verify Myfxbook accounts. For easier access and more uses of the platform, you may check on the forex brokers that provide Myfxbook autotrading.