I am a big fan of myfxbook (and similar sites like Mt4i and FXSTAT just to show I am not an affiliate) because its practically the only way to show
a) other users trading track record
b) Your own trading statistics
I have been criticized in the past for saying that ‘I don’t trust a trader/teacher without a track record’ mainly because those teachers/traders wish to hide their own failure and continue to provide a second class trading or teaching service. Trading, especially retail trading is full of ego, and having to admit that you are not successful shatters that ego. Myfxbook is an example of a trade verification service that checks with the server to ensure that the trader is telling the truth about how they trade.
Myfxbook can be used with Oanda, FXCM, ctrader and any MT4 or MT5 terminal (Mt5 is still in beta I believe), so no excuses!
However some people can be misled by myfxbook not due to the fault of the website, but because people use mybook properly - the rest of this post will be a guide on how to use myfxbook. This might sound simple to everyone, but I thought it may benefit a few people.
Setting up your own account is simple - it takes about 2-3 minutes, and you do not need to divulge your information to do so. There are 3 ways to set up an account:
a) Download and use the trade publisher EA.
The advantages of this is that you do not need to give away your investor password - simply download the EA onto your MT4 and it publishes your trade data for you. The disadvantage of this is that if you use a lot of EAs already it might clog up your metatrader platform. You also need to know how to set up an EA, although that should be easy to do.
b) Use the online auto update option
You give your investor password to myfxbook (this password has no trading privileges and is a safe password to use) and your trading stats are updated directly from your brokers server. The advantages of this are that it takes about 20 seconds to set up and it does not clog up your metatrader 4. Disadvantages are that you need to give away your investor password - although in my opinion its a completely safe password to use (it was designed by metatrader for the very reason to allow other people to view your trading results safely).
c) Use the publisher option
You set up your metatrader publisher on your myfxbook to publish your results periodically. The advantages of this is that you don’t need to give away your password, and you can control when the publisher updates your record. Disadvantages are that it takes slightly longer to set up (about a minute for the website to recognise your data).
Now you know how to set up your myfxbook!
Originally when MQL4 designed the MT4 platform they included a way for people to safely show their results. This allows users to give the investor password to allow people to look at an account with no way to access trading. There are a few people here who claim that they do not use myfxbook because there is a way to hack, but that’s simply not true (its usually an excuse they use so they do not want to post their results). Just don’t use your master password - use the investor one. It uses all the information on your account direct from the server so it can backdate your info. If anyone wanted to prove they were a good trader all they would need to do is to add the publisher and all their info from their MT4 account would be available. That goes for all traders who have been around since 2007/8/9/10/11 etc. They could prove their results in less than a minute. Any attempt at interference/hacking has to be done through the server end (ie: by the broker), and if your broker is fiddling with your account, that’s nothing to do with myfxbook.
Next I shall talk about how to recognise ‘manipulated myfxbooks’ and people faking results. Its my opinion that you shouldn’t trust any teacher/trader who is offering services who does not provide verified results. If you see one of my last posts you will recognise that 90% of traders are losing traders - and purely statistically, the teacher or trader who is offering you a service is 90% likely to be a losing trader - and not someone who you should be learning from or trusting your money.
Myfxbook has several inbuilt methods to prevent trade manipulation: you can still place a manipulated myfxbook on the website, but myfxbook simply flags this - its up to you to recognise these flags.
This is the format of the top of myfxbook:
Note the following:
Green tick for track record verified
Green tick for trading privileges verified
Real broker listed
Gain/real gain listed
Absence of a ‘custom start date’
Account listed as a real account
We shall also talk about using the drawdown tab (next to growth, balance and profit) later to spy those accounts that hold onto losers for ages before blowing up.
The account should have been traded for a substantial amount of time
Traders/teachers offering ‘screenshots’ of myfxbook as proof of their trading
The trading history should be open for viewing
All of these 10 points to identify trustworthy accounts versus ‘manipulated’ myfxbook accounts that are not really worth your time in recognising a proper track record.
1: The ‘track record verified’
The track record verified is important in identifying a real account vs a demo account or if an account really belongs to the broker they say it does - it basically gives a green tick if the information you provide matches up with the brokers data provided by its servers. Myfxbook matches up trading/deposit/withdrawal information with your server. Any deposits/withdrawals/trades that do not match up mean that this green tick is not provided. This can be annoying for some trading accounts since if you have any extraordinary deposits/withdrawals outside of what myfxbook recognises then the account may not get the green tick (such as brokers refunding mistakes or market maker brokers correcting previous price spikes that too many people complained about).
A lack of a green tick should make you suspicious that the account is really a demo account vs real, although there are some provisos to this. One common misuse of this is when traders attempt to mark their demo account as a real account. When you set up myfxbook publisher you can mark your account as real or demo. You can in fact mark a demo account as real or even say that your broker is a more reputable broker (for example saying your broker is GFT when it is really a dodgy broker in Vietnam).
The advantage of marking a demo account as a real account means that a trader or investor can use the faster execution of a demo account to their advantage. Many trading systems will only work on demo accounts and will not work on real accounts because of slippage and requotes. Commonly arbitrage accounts that trade 1-2 seconds for trade duration generate huge profits via demo by trading latency between MT4 and the real price feed
How it works is basically MT4 lags slightly behind the real price especially during news events - impossible to take advantage in real life - you can see this happening during NFP or interest rate decisions - the MT4 price will freeze for a few seconds, and the price will suddenly gap up or down. The real price does not gap. A demo account trading latency can take advantage of this delay and place a buy/sell order knowing what the price actually is and then gain profits. If you tried to do this in real life, your order would not be filled. You can see this if the trade history is open - note the duration of the trades.
Another advantage demo traders have is that they are more relaxed in trading and can risk more. Over short periods of time in theory, a trader could line up a row of demos, go long on one demo, short on another. Of course, over longer periods of time trading this way is impossible (because the number of combinations would require 1000s of demo accounts), but over short periods of time this can be an exploit.
However, not having the green tick is not all bad - some accounts will not have it simply because your broker has given you credit for a mistake (which is not recognised by myfxbook) or a trade has been corrected because of a spike or error with your broker. These accounts unfortunately are marked with a red cross. Generally if an account has a red cross for verification, it has been trading a long time, it has an open history of trades and has not been exploiting MT4 with mega fast trades then its considered fairly trustworthy as live trading a demo successfully over many months is almost as hard as a live account. It is also worth noting that your broker will delete your history over time. If your account is years old, or your broker deletes data on the server after a couple of years to clear space, you may find that your account cannot get the green tick because the data cannot be verified with the server data (since the data has been deleted).
- The trading privileges should have a green tick.
This trading privileges is designed is designed to ensure that the person providing the results has the right to place trades on the account. This is to prevent people who have somehow got access to the investor password of a successful investor passing it off as their own.
For example, if I was an unscrupulous teacher and my pupils were clamoring for proof of my trading methods, I could go and find myself a successful trader, pretend I was an interested investor and ask for the investor password so I could check that successful traders account before I considered depositing my money. Of course, I have no intention of investing, and the ruse is just to get hold of the investor password and the account number so I can set up a myfxbook ‘proof’ of my trading. I would continue to teach badly all the while the successful trader can be an unwitting accomplice by trading a decent account which I claim as my own. However, the trading verification tick,lets you know that the myfxbook account owner has trading privileges and has not simply stolen the account from someone.
Setting up the trading privileges should be fairly easy, but some traders may not like to give out their investor password because they are suspicious that someone will steal it, or do something with it. If a trader has his trading privileges unverified you should consider whether someone else is doing the trading. Obviously the proviso is if you see the trader trading the numbered account live via video or livestream then you can pretty much ignore this check.
However if an account has both red crosses for the track record and the trading privileges you should be very cautious that the entire account is produced from ‘stolen metatrader details.’