Review of ALL STAR FOREX Telegram Channel
- Anna Taimes
- 16 hours ago
- 3 min read
One of the most popular social media platforms for traders is Telegram channels. These channels offer "free signals" and have an enormous amount of subscribers. As we all know, there's no such thing as a free lunch and "too good to be true" is an understatement of the month. This article aims to shed light on the activity of one of these channels, ALL STAR FOREX. Our thorough and analytic review of their signals and performance might help you not to lose your money following this group.
Channel Overview
Telegram Channel Link - https://t.me/tradewithzafrre
Feature | Details |
Channel Name | ALL STAR FOREX |
Channel Link | Not Applicable (No Website/Other Socials) |
Subscriber Count | 25,252 |
Average Views Per Post | 1,800 |
Operational Since | July 1, 2020 |
Posts Per Day | ~16 (Very Active) |
Main Content | Free Signals, Trade Updates, Paid Channel Promotion |
Markets Analyzed | Primarily Gold (XAUUSD) |
Free Signals Per Day | ~2 |
Trading Style | Scalping (Asia/London Sessions) |
Free Education | No |
Real/Face/Name | No |
Suspicious Signal Format and An Acceptably Bad Winning Rate
The main point that attracts traders to this channel is a "Free Signals". After a close inspection of these signals, we found the systematic issue with them. Signals usually have the following format:
GOLD Buy 4175-4176
TP 4182
TP 4190
TP 4220
SL 4169
Everything looks perfectly okay until the execution of the trade comes into the question. Our independent analysis shows that ALL STAR FOREX uses "limit orders" to enter the position. Though, there's nothing wrong with it per se, except one point. Usually, the market doesn't reach the specified level to execute the signal.
Low Activation Rate: Our analysis shows that in the majority of cases the signal is never activated. The market simply doesn't retrace to the overly optimistic entry zone and moves in the expected direction, making the signal useless for the follower.
Deceptive Marketing: The channel's owners lie on the regular basis by claiming that the orders are bringing them big wins when actually the signal isn't being activated. It builds the false expectation of profitability among the subscribers and makes them join a paid premium channel of the owners.
The Winning Rate
For an objective assessment of the channel, we did a backtest of each free forecast during the last 6 months. And the results are horrifying.
Average Winning Rate: We found an average winning rate of 27%.
It means that the channel got the direction wrong nearly 3 times out of 4. Although some strategies can be profitable even with a low win rate if they have a high Risk to Reward Ratio (RRR), this strategy doesn't.
A Catastrophic Risk to Reward Ratio
Although winning in 27% of the trades is not automatically a deal breaker if the strategy brings huge gains on the winners to compensate the losses on losers, this particular strategy has a terrible Real Risk to Reward Ratio (RRR).
As shown on the example above, the risk here is the difference between the entry price and the stop loss (4175-4169 = 6 pips). The rewards to the Take Profit levels (TP1, TP2, TP3) are 7 pips, 15 pips, and 45 pips respectively. Although the targets are quite profitable, it's almost never a home run. With ALL STAR FOREX, the rarity of winners makes the trade quite unprofitable due to small profits in comparison to losers. Losers are being closed near the SL-level making a follower suffer for 6 pips per losing trade.
The low win rate and small profits make the math simple – you will need 3-4 winners on average to cover one losing trade.
Conclusion: Does The Channel Deserves Your Attention?
No. We don't recommend following this channel because the statistics show us quite a different situation. The low activation rate (due to limit orders), poor winning rate (27%) and bad RRR don't make following the signals a profitable decision.
0/10 TRUST SCORE
The promotion of unactivated "big wins" of the channel is a borderline behavior and can be qualified as misleading advertising. The channel has a lot of subscribers, but the considerable decline in views (1,800 views vs 25,000 subscribers) is an evidence of the existence of many fake accounts. At the end of the day, the only one who might make money from this channel is the owner of the channel who promotes a paid version of these unprofitable signals.