Isunia’s profit curve is like a well-measured slope that shows the steady rise in its equity. This is usually the signature of an account that is traded with an Expert Advisor. And true enough, Isunia utilizes a forex robot in trading this account. And that trading robot is primarily responsible for this steady rise in profits for Isunia.

Isunia also uses some hedging strategy with the trading robot that he is using. Therefore, it should be important to note that anyone eyeing to use Isunia as his trading signal provider should remember these two important factors. Isunia uses Metatrader 4 as his platform, and your forex broker should allow hedging for you to be able to utilize Isunia’s trading signals.

With that said, analyzing Isunia’s trading statistics would lead one to conclude that he is using one very powerful EA in his trading. With a trading winning percentage of 97%, Isunia is able to achieve a Return On Investment of 441% in only 31 weeks of trading as of March 2, 2010.

His drawdown statistics, however, may elicit some concern for conservative investors as he pegged his maximum drawdown at 31%. That is quite a hefty amount for any conservative investor who aims to protect his equity more than to grow it aggressively.

But for an aggressive investor, such a drawdown may be an acceptable figure as his ROI results certainly justify the risks that the EA is making.

For investors who prefer the emotionally-detached trading of a forex robot, then Isunia may be the right provider for your account. You can check the trading records for yourself and see how the account grew so fast in only about half-a-year of trading.

Isunia uses short term trend as basis for his trading positions. And he recommends some amount of strict capital management so that the signals he provides does not blow out your account away. As with any other strategy in forex, a well-thought-of and thoroughly-computed capital management strategy should be strictly observed. Know the number of lots that should be used optimally with this strategy. And calculate the total amount of equity that should be exposed with Isunia’s appetite for risk. And with all of these factors being factored in the trading of your account, you can certainly copy the rising slope of Isunia in you own equity curve.

View Isunia’s trading records here and scrutinize every trade that the trading robot has made. Better yet, open your own demo account and try out Isunia as you free service provider and watch your demo account rise steadily.

Forex investors are pretty much critical about the performance of their forex investments according to certain factors and benchmarks. The term ROI or Return On Investment and Drawdown are two of the most popular terms that are often used when referring to a forex account’s profitability and performance.

But what exactly are ROI and Drawdown? How can these two financial terms help a forex investor understand his account better? And in relation to free forex signal providers, how should an investor view ROI and Drawdown in evaluating the forex experts that should handle his account?

Return On Investment

ROI, the acronym for Return On Investment, is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of investments. To calculate the ROI, the benefit (return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

ROI = (Gain from Investment – Cost of Investment) / Cost of Investment

In simple terms, ROI measures the profitability of an investment, And in forex parlance, ROI is a result of all the pips gained from trading currency pairs. A positive ROI means that the forex investment has gained from trading. While a negative ROI indicates that the forex investment is losing.

It should be noted that when calculating the ROI of an investment, it is the actual value of the capital which should be used, and not the balance. The capital figure represents a more accurate standing of an investment account because it already factors in all past trading profits and gains, including all open positions which are also either gaining or losing.

Drawdown

Drawdown, on the other hand, is the peak-to-trough decline during a specific period of an investment. In forex trading, this is usually viewed in relation to trading positions. When an investor enters a position in the forex market, prices do not necessarily go immediately in the direction of his trade. In fact, whenever a forex trader enters a trade, he is immediately at a loss position because of the spread. Drawdown is the measure of the maximum loss that the forex trader must endure and go through before the position goes positive and turns to a profit, or liquidate. Of course, the lower drawdown, the better it is for the investor since drawdown connotes the risk involved in the trade. If a forex trader can always minimize the risk in every position that he takes by keeping his trading drawdown at a minimum level, then he can achieve an ideal risk-reward ratio for his investment.

Evaluating Forex Signal Providers

ROI and Drawdown are important measures that can be used when evaluating forex signal providers. While a forex signal provider may boast of a skyrocketing ROI for his investment portfolio, it is also important to take note of the drawdowns that he has incurred to be able to achieve his high ROI. If a forex signal provider’s drawdown is excessively high, it should redflag the investor that this provider may be putting too much risks on his trades. And a high-risk type of signal provider may not become effective for everyone, especially for forex investors with only a small amount of capital in the balance. High drawdowns can certainly wipe out small capital which cannot sustain the high-risk trades given out by the signal providers.

So, while a high ROI may be a good indication of the profitability of an account, the drawdown should be given equal importance as well, as it indicates the risk factor and even the resulting sustainability of an investment.

Of course, the best combination would be a high ROI with a low Drawdown type of investment. If a forex signal provider carries this kind of a combination, it improves a forex account’s profitability in the long run. But if such combination is hard to find, the next best solution is to find the perfect balance between the two.