How to Backtest Forex Signals Telegram Channels. Testing Signal Providers Groups Explained (full guide)
- VasilyTrader
- 4 hours ago
- 3 min read
Always backtest free signals performance of signal providers, before buying VIP signals.
Many of them will fake their free signal results to sell you worthless VIP access.
In this article, I will teach you how to do backtesting of forex signal channels on telegram and expose the scammers.
I will show you how to test multiple take profits, partial closes and a single take profit signals.
Discover the one secret signal providers hope you never learn.
MULTIPLE TPs FOREX SIGNALS BACKTESTING
Let's start with testing multiple take profits signals, because the majority of forex channels on telegram use that.
For the sake of the example, let's back test a free signal of this popular free forex signals channel on telegram.
Date & Time
📈 BUY EURCAD @ 1.57297
✅ TP1: 1.57497 ✅ (20 pips)
✅ TP2: 1.57797 ✅ (50 pips)
✅ TP3: 1.58297 ✅ (100 pips)
❌ SL: 1.56297 ❌ (-100 pips)
The signal is well-structures, it has entry, stop loss and 3 take profits.
For testing that, we will need the exact date and time of its publication.
It was 14th of April, 05:01 PM my local time.
TradingView Replay
After that, we will need to open EURCAD daily chart on TradingView and find a date of the publication of the signal.
Using "REPLAY" feature, we will cut a price action from the next trading day.
Plot Trading Position
On 15 minutes time frame, find the exact moment of the execution of the signal, plot the trading position with entry level, stop loss and targets.
That is how our signal looks.
Test Updates
Test the updates of a signal provider then.
The first update was in 26 minutes - TP1 reached.
The second update was in 1 hour and 29 minutes - TP2 reached.
Our backtesting confirms that.
Another thing that we see is a call to move stop loss to entry and apply partial close.
Expose False Claims
The last update for this free signal was provided in 2 days - TP3 reached.
Though, the price managed to reach the level of TP3, it went below a stop loss level first.
Looks like a signal provider "forgot" that stop was moved to entry.
And claimed a big win in his telegram channel while the trade was already closed.
As you can see, a signal provider lied. And you could expose that only with testing.
The Problem
Multiple take profits signals have a complex trade management, what makes them hard for back testing.
That is why so many scam forex channels on telegram use them.
For that reason, I recommend following signal providers that trade with a single take profit.
One TP Signals Testing
Let's backtest another signal.
💜 GBPUSD Massive Short! SELL!
👩💻My dear friends,
My technical analysis for GBPUSD is below:
The market is trading on 1.3309 pivot level.
Bias - Bearish
——————-
Target - 1.3295
Recommended Stop Loss - 1.3316
————————
💐#GBPUSD
💹Time Frame : 1H (signal)
———————————
This forex signal has entry, 1 TP and SL.
TradingView Backtesting
Let's plot that setup on TradingView, following the exact date and time when it was provided.
That is how this trading position looks.
Check Updates
Let's see if any update was provided for that.
The only update that I found was a claim that 14 pips of profit were made.
I measured how many pips were in fact made and also got 14 pips.
No lies were detected.
Remember This
As you can see, some signal providers on telegram may exaggerate their results. 5 minutes of backtesting will help you find a trusted free signal group and a scam one.
Don't let scammers fool you, and good luck in forex trading.
