I recently looked at a money management broker plugin which is aimed towards new traders who are learning the ropes of forex trading. “Guardian Angel” is an automated guidance system which gives traders the analysis and support they need to develop. By directing the trader’s attention to the strengths and weaknesses in their trading style it helps traders grow: extending their lifespan as active customers. In short, the software acts as a guide, informing traders concerning their risk. That’s at the heart of the software.
I have to say that the name itself “Guardian Angel”, is not a great choice as it may be blasphemous to some people.
Moving away from religion, concerning the actual software, then frankly, it does do some good things. Here is what the developers claim it does:
- The “Guardian Angel” is a personalized decision support tool that provides feedback to each trader in real time about various aspects of trading – most useful for novice traders.
- First indications show that it has a positive impact on traders – they tend to last longer in trading comparing to a control group.
- The system provides insight about market volatility and relevant news events that may have an effect on market behavior.
- The GUI is designed to allow flexibility for the user in choosing the desired messages.
Specific stats include:
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- Increased deposit rates (over 70% increase)
- Increased transaction volumes (over 70% increase)
- Increased customer retention rates (15% increase )
Now, whether these claims are true or not remains to be seen. But frankly, I highly doubt it.
What the software does is to analyze the traders’ own performance to seek out identifiable trends. It never tells traders what to do. Instead it helps traders identify the successes and failures in their own trading, thus enabling them to trade more effectively in regards to money management.
There are a lot of options a trader can choose, concerning what info they want to appear…
Bottom line is, this is not going to help you learn how to trade price action, or trendlines, or Fibonacci, or support and resistance, or pivot points, or the news. No. This software is simply there to tell you, in an elaborate manner, with lots of statistics, whether you’re risking too much per trade, and the potential consequence.
At the moment, Etoro is the main broker supporting the software, so no MT4 as of yet. A Metatrader plugin should be released early next year. This is what their CEO Jonathan Assia had to say about the software: “One of our main goals is to continuously educate our investors and give them the necessary tools and guidance to improve their financial investing skills and decision making process. We have therefore launched the responsible trading program, one of the tools we provide within this program is the innovative Guardian Angel system. This tool individually analyzes each trader’s activity and instantly provides the trader with valuable feedback and tips on risk management, trading performance, statistics and issues alerts about upcoming financial news. Both novice and advanced traders in our investing network use the Guardian Angel on a regular basis and report back to us with positive feedback about improving their investment decisions.”
Overall, the software may have some promise, but because this is an optional addon for a trader, from my perspective, there’s not much of an incentive to take it up. Firstly, new traders (no matter how much you tell them about money management), don’t care about risk, they’ll do what they wanna do, purely for curiosity’s sake, usually they learn themselves to calm down after mashing up. And secondly, experienced traders won’t even need this. So unless it was there by default, I personally don’t see large numbers of traders referring to it.