Signal Trader just added a new indicator which is very useful for evaluating the historical performance of their systems, and more specifically historical drawdown. When you go click on the “Balance” tab under “Historical Performance”, the graph will now not only show the historical balance, but also the actual historical equity, which takes into account the Floating P/L at that time (i.e. the open trades). Hence you can quickly view by how much (in real money) the account of the Signal Trader system was drown down in the past. On the graph (click it to enlarge), it’s the red line. Please note that the balance graph also still displays the actual profits withdrawn from the system account by the trader.
Unfortunately the time frame of the historical equity indicator currently only goes back until July 2014. Nevertheless, this is a great addition in our opinion, making the information provided by Signal Trader clearer and more transparent. One caveat we mention in our Signal Trader review is that the calculation of the drawdown displayed in the historical performance can be confusing and optimistic. This is because this value is currently calculated as per a set of negative closed trades. Comparing the equity value with the balance value on the graph gives you a more convenient and easier to understand indication of the past drawdown.
Signal Trader was formed with the aim to provide the best possible solution for automated trading, enabling investors to automatically copy the trades of other traders in their own brokerage accounts. Signal Trader does not act as a broker themselves. Their motto is “Real Money, Real Trades, Real Time”. In fact they’re one of the only social trading networks were all the systems are required to trade with their own money and where the actual value of their trading accounts is shared with the investors.