How would you react if you opened your MetaTrader 4 account and saw a trade opened with a floating loss of about $1000 USD? I am sure you would freak-out unless your account balance was above a million dollars.
That was my reaction, too, when I logged into my MT4 account on January the 3rd. Now I said the loss never happened… because after all it was just a mistake from the company that provides MT4 bridge solution to my Jforex account that I have with Dukascopy.
Now let me give you the full story. On January 3rd I logged into my Jforex account and placed a pending order of 1,000 units on AUD/USD pair. It was a quick test to see if Dukascopy Jforex account, which is connected with the MT4 bridge, would replicate that pending order into my live MT4 account. This is the same MT4 account that follows my trading signals from Vavatrade.com. The pending order was not replicated, but then I realized that it must be because of the trade size being too low or something. So I decided to change the trade size on that pending order in the Jforex account and modified the order size to be 20,000 units. That would be a 0.2 lot size equivalent on a MT4 account.
Then I switch to my live MT4 account and see that there is still no pending order, but instead I have a market order of 0.2 on AUD/USD and it is floating in a loss of about -1000 USD. So, to make it clear, the Jforex account, which holds my funds, has a pending order, and at the same price, there is a market order on my live MT4 account.
Yes, this seemed to be very unrealistic to me as well. At first I thought its just some simple mistake and tried to restart my Jforex and MT4 platforms, but that did not help.
So that pending order was placed @ 0.94620 and the market order had the same open price which was about -470 pips away from the current market price. Obviously this market order could not be opened in any way that far from the market price.
So I realized that it was some kind of an error caused by the MT4 bridge. Now please do not get me wrong, I write this story not to point to someones mistakes and make them feel bad about it. I make mistakes myself as so does every human on this planet. I write this story to explain about that AUDUSD trade that reports a loss of a little more than a thousand bucks, because my customers are already sending me questions and asking me about this a lot.
All this happened on Friday right after the New Year and the company that provides the MT4 bridge could not help me. I contacted their support desk about this, but they said they cannot help me until Tuesday, January 7th.
Now on Tuesday that trade was closed and I did not suffer any financial loss actually, because the trade really never existed, but the company said they cannot remove that from the MT4 reports. It means that trade will stay there forever just making my trading account history look bad.
In the image below you can see how the trade looks after it was closed. I mark the trade open and close prices and connect them with the line so you could easily see how impossible this is.
Here is how it looks in my Account History tab
You can see there are Auto-sync with Dukascopy transactions of significant amounts during the time that the trade was opened in the MT4 account. This was done because my funds at Jforex account did not match with the MT4 account balance. So these numbers will stay there forever.
Now the final MT4 account balance is correct as it was auto-synced with the Jforex account after the trade was closed by the MT4 bridge company, but the trading performance graph on MT4 and MyFxBook.com will look not that great because of this mess.
Here is how these numbers look in MyFxBook.com
You can see those Auto-sync transactions are reported as Deposit and Withdrawal transactions.
Also, the advanced statistics table shows the values that are actually not true, but that is what MT4 reports, so no blame to MyFxBook.com.
The worst thing here is that the Worst Trade($) is -1125.80 USD. Yes, the same trade that never happened in reality. So this may lower trust in my trading performance when people see this number and will not know this story. Also Worst Trade (Pips) is -562.9 pips, which comes from the same trade. As you may know, on Vavatrade, I never use stop loss larger than 300 pips, but now in advanced statistics people will see different number.
Also check out the monthly analytics table
The -11.54% loss for the January is definitely incorrect and is not what it is actually. At the moment when I write this article Vavatrade account is up by 200 pips already in January. Now it is obvious that this number will change as there will be more trading this month, but that -1000 USD loss will never go away from these statistics.
Now let me point a few things here. This live MT4 account that I show you having these problems with the account statement is not the master account for sending Vavatrade trading signals. This is my personal real money account that receives trading signals–as any regular customer of Vavatrade does. This account here is to show you the potential of my trading system on a live account.
The biggest problem with this losing order (that never really existed) is that it reflects in the trading performance graph on MyFxBook. In the picture above you can see the table saying +173.85% gain, which actually should be more. The other percentage numbers like Daily, Monthly, Drawdown would be higher as well if this mistake by MT4 bridge company never happened. Now, in the performance graph, the line goes down because of that incorrect number in the trading statement of MT4 and that does not belong there either.
Keep in mind that because MT4 and Jforex accounts perform auto-sync once a day, the Balance, Equity, Highest and Profit values seen in the table on the left are correct numbers.
My First Withdrawal
I would like to point out one more thing that some customers have been asking me quite a lot. See the image below which shows the balance graph of my real money account. You can see a significant drop down in April 2013. This is a withdrawal transaction that I have made. I have doubled my account in 12 months and then withdrawn the profit.
You may want to read this article next which will teach you how to dramatically improve your forex trading results.
I am sure you still wonder why I did said that the demo account is more stable than a live account? Well, the trading signals are sent from a demo account on Alpari UK, believe it or not, did not have any problems for the last 3 years, while I DID have problems with this LIVE MT4 account that was connected with my Jforex every 2-3 months. The good news is that sending the trading signals from a demo account proves that you can start your own trading signals service with little or no investment at all. I have done this and I will share this story with you in my recently expanded eBook in the next several weeks.
So, have you had any problems with MT4 bridges lately?
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