Don't Trade Half / Partial Close Trading Signals. Dirty Trick of Gold Forex Telegram Scam Signal Providers

Scammers will use partial close to fool you!

Learn why close half is a significant red flag in choosing a trusted Forex, Gold signal provider on Telegram, WhatsApp or any website or platform.

Discover how scam channels manipulate trading statistics and results with partial close.

I will teach you a simple trick that will help you expose when close half is in fact fake profits.

The Truth

And let me tell you from the start, that partial close is not always the scam. The problem is, however, that most of the forex, gold signals scammers use that.

I will share with the instances when close half works perfectly for protecting profits.

Half & Partial Close Explained

Also, let me explain in brief for the beginners, what is half/partial close.

Imagine that you have a running sell position on USDJPY forex pair.

The price is steadily heading to the target.

With partial close, you can close a portion of your running profits, keeping the position active.

In doing so, you will protect some of your gains.

Let's see how it works in practice.

• Imagine that we took that trade with 1% of our deposit risk.

• Our take profit level will give us 3.8% reward.

• Risking 1%, we are aiming to make 3.8%.

The level where the price is standing now gives us 2.1% reward.

When we close half of that, we book 1.05% profit (2.1%/2). 

That's indeed a great strategy to protect our gains from unexpected market reversal.

But there is one problem with that approach.

If we keep this trade active till it reaches TP, we will make not 3.8% reward on take profit level, but only HALF of that - 1.9%.

Because we already closed half earlier.

Our total gain with close half will be 1.05% (our early profit) + 1.9% (TP profit) = 2.95%.

If we decided to not use close half, we would make 3.8%.

Almost 1% more.

As you can see, partial close eats up our final gains.

Statistics & Results Manipulation

But what is the problem with that?

Why can't forex, gold signal providers use that to protect the gains?

Of course, they can! The problem is in final reporting their gains!

Let's take a signal of this Forex, Gold signals provider on telegram.

GBPUSD long trade with stunning 2,4 Reward to Risk ratio.

Looks like a great trade.

When the price starts going up and rises by 33 pips above the entry,

we see an update to close half.

• At that moment, the price reached 0.46% reward. 

• Closing half, we book 0.23% profits.

• While it is still 33 pips profit.

At the point, HALF of our trade is already closed.

In 2 hours, we see another update.

To partial close again.

He does not say what portion exactly, let's assume that it is half again.

• At that moment, GBPUSD reached 0.94% reward.

• We already closed half, so for us, it is 0.47% profit.

• If we close half of that, we will book 0.235% profit.

• BUT it is 68 pips profit in pips.

If we keep that trade till TP, here is a final reward that we will get.

When we close the rest of our active trade on take profit, we will get not 2,4% as we aimed initially. When TP will be reached we will have only 25% of our initial trade still active - 0.25%.

Net Profit Calculation:

0.23% (first half close) + 0.235% (second half close) + 0,6% (final tp 0.25% active trade * 2.4 Reward/Risk ratio) = 1.065% reward.

Add to that broker fees, swaps, spreads and a net final result will be below 1%.

But stunning 170 pips.

From a real percentage analysis, this trade is not good at all and has a terrible real reward to risk ratio.

But from pips perspective, it is a great result.

Fake Pips Statistics

When scam gold forex signals channels provide the reports of their signals, they provide the statistics in PIPS.

If a signal provider applies partial/half close, such results will be completely misleading and will not reflect real returns at all.

For that reason, you will need to ask him to provide statistics in percentage. If he does not provide you that, you are likely facing a scam.

Pips signal reports reflect real gains only if a signal provider trades with 1 take profit and does not use partial close.

Not Scam

But when close, half is not a scam.

First, when signal results are provided in %.

Secondly, I recommend you doing a back testing.

Partial close should be used when a running profit

exceeds the risk.

So if you risk 1% per trade, running profit should be strictly bigger than 1 (the bigger that number the better) for a half close. 

In such cases, partial close will truly be useful for profits protection.

Simple Trick

Scammers start partial close very close to entry to mislead traders and manipulate the results.

If you see that a signal provider sends the update to partial/close half when the price moved just a bit from the entry point, it is a significant red flag for you!

Good Partial / Half Close Example

That's an example of a valid application of a half close.

Half profit was booked only when the reward exceeded the risk.

Always remember that partial close is a dirty trick that scam forex, gold signals providers use. A simple backtesting and understanding how real results are calculated will help you to expose scammers.