How to Expose GOLD XAUUSD Scam Signals Channels on Telegram

Most of Gold XAUUSD signals channel on Telegram lie!

They will provide you fake reviews, tweaked trading results and false statistics.

In this article, I will show you a very common dirty trick scam Gold signals channels will use to mislead you.

Let me equip you with the knowledge and skills to easily expose scammers and find a trusted group on Telegram.

What Scammers Do

You will see this trick in many popular free gold signals groups on Telegram.

For the sake of the example, let's take a free Gold XAUUSD signal of this channel and see what is wrong with that.

Gold sell now @ 3365 - 3368

Sl: 3373

TP1: 3360

TP2 : 3354

Signal on Chart

Here is how this signal looks on a price chart.

It has quite a wide entry zone, stop loss and 2 take profits.

Update

As the trade became active, in 2 hours an update for that was provided.

+60 pips on profit! WOW.

Update on Chart

Let's see how it looks on a price chart.

He calculated 60 pips of profit based on an entry level that is way above the entry zone that he provided.

Reward / Risk Analysis

In fact, if you took a trade from the low of the entry zone, you would have made a very tiny profit.

Risking 1000$ for that trade, your running profit would be 30$.

Closing a portion of that, your net profit would be 15$ if you decided to close half.

End Result

According to trade management rules, you should have moved your stop to entry.

The price went above the entry zone then.

And the trade should have been closed.

Don't Trust the Numbers

And here is where scam signal providers will fool you.

The update for this signal is accompanied by a screenshot of running profits.

You can see that he has almost 15000$ running profit.

First, there is no proof at all that these profits are real.

But, the main problem with that is that in trading, the profitability of a trade is based on 2 main elements:

• your potential risk,

• your potential reward.

To achieve the result that this guy got for this trade, you should have risked more than 200000$ for this setup.

Closing half of his running profits, he would make 7000$ dollars.

7000$ dollar for 200000$ risk.

Does it worth it?

I don't think so.

Illusion of Success

Screenshots with running profits create an illusion of efficiency and profitability of this trade.

While real testing of this setup shows, how awful this trade was.

I think that the majority of the members of this group did not plot this setup on a price chart and did not test it.

Instead, the majority would trust these profit numbers.

AND IT IS A FATAL MISTAKE.

What this guy does next, he advertises his VIP community, showing how profitable his premium members are.

Common Scheme

And you will see such a scheme in many other Gold channels.

MT4 screenshots with huge profits, claims of big pips wins.

Once you noticed that a signal provider uses that, spend a minute on backtesting. Open a price chart and compare potential risks and real returns.

If you detect very low real reward to risk ratios of booked profits,

it will be a red flag that will mean that group authors are trying to fool you.

Running profits does not prove trading results.

What matters in trading is your reward to risk ratio.

Your potential profit should always be bigger than a risk.

A trusted signal provider will stick to the target and will provide a profit update only when take profit level is hit.

Be Careful

Do not let scammers fool you.

Remember that while they brag their running profit, they will never warn you about the potential losses.

Be careful, choosing a gold signals provider on Telegram and good luck to you in XAUUSD trading.