Forex Signals Services
Many forex traders are coming to a conclusion that some guidance in the market may assist them what currencies are expected to outperform or under-perform through the day, week or month. Many different services publish daily to weekly forex forecasts, some free and some are paid services.
We must first highlight that the free forex market review that is provided by the broker is generally superficial and is not intended to assist the traders in profiting in the market. The broker simply provides you with the means in trading the market rather than providing extraordinary assistance to ensure its traders are successful.
The majority of the forex reviews that are provided by brokers |(not all) tend to cover past events and do not provide a conclusive outlook or applicable trading strategy for the traders.
Some brokers may integrate the services of third parties such as zulutrade for example or other analytical tools but the ultimate goal of most forex brokers is to maximize the trading volume from its traders rather than focus on their success. This where forex signals services step in.
There are many forex signals providers and services in today’s markets, some are legitimate while some are not. In this article we will cover how forex signals and how to identify the best forex signals service that suits your needs and expectations.
Forex Signals Performance
Having a forex signals performance is essential. A forex signals service that does not show a track record on most occasions has a valid reason for it. The signals may not be as attractive as advertised regardless of the price the service charges. If a signals performance is presented it is important to have a track record of at least 2 years.
The reason for the above is to analyze how the signals service was able to handle consecutive losses. During the 2 years there has to be at least 1 phase where the service issued signals that resulted in losses. It is important to see how the service traded after these losses and whether any aggressive attempts were made to recover.
Many traders will often attempt to recover as soon as possible. This clouds their decision-making process in the Forex market and will often results in heftier losses.
After analyzing the performance the service must provide some means to verify the performance is real. It is relatively easy to falsify a performance as only numbers are displayed. If no means are available to verify the performance aside numbers we suggest taking extreme caution with signing with such a signal provider despite any reputation it may have.
Our forex signals service dates back to 2014 and yes, we have incurred phases where consecutive losses were incurred. While our performance is not displayed on myfxbook or any other similar platforms we do have a more unique approach of verifying our forex signals.
We outline the trading strategy for every signal before issuing the trade via email. Once the trade is issued we monitor the markets throughout the day and issue daily updates on the progress of our trades to our members. When a trade update is issued we take a screenshot of the chart and post the update on the website after it was issued via email.
Such transparency and documentation is virtually non-existent in today’s market and we pride ourselves for maintaining the forex signals service since 2014. As our members are fully aware of the strategies of our signals they may dismiss signals that are not align with their views or reduce the market exposure for the given signal.
Timing and Intraday Signals
Every trader lives in a different time zone. When the signals are issued are therefore important and whether these are intraday signals or swing signals. Intraday signals means a short time frame such as the 15min chart for example was used to produce the signal.
Intraday forex signals often mean the entry price is critical, especially if the trades are at market price and not entry orders. You will have to act fast or end executing the trade at a worst price, which may only increase the size of the stop (if used) and expected profit.
If entry orders are used in intraday signals such as buy limit or buy stop the concern will be when an update is issued to cancel these orders.
If the signals service determines the entry order is no longer valid and suggests cancelling the orders, should there be a significant price movement and the entry orders are triggered you will have trades open the service suggested are no longer valid.
At ddmarkets we do not issue intraday signals, the vast majority of our trades are based on the daily, weekly or monthly chart. Most entries are at market price but as a long time frame is used even if the price spiked higher or lower when the trade is issued it has little impact on the validity of the signal.
We started adding a price range to our signals to eliminate any concerns of initiating the trades should a spike take place when the signals are issued via email. Most of the signals are issued around the daily close, any trade updates that follow will be mostly during the US session. We do not randomly issue signals throughout the day that may difficult to track.
Profitable Forex Signals Services
Most of the respected forex signals services will not guarantee a profit or suggest in any manner that only profits are made. In trading, not just forex, there may be a weak month or a strong month. What we have been doing over the years is to ensure the losses are contained and may be recovered in future signals.
We do not implement hefty stops nor do we tolerate floating in a drawdown until a profit is made. If we misread the market we will incur the losses and focus on the next trade. Widening the stops in an effort not to incur a loss may only result in greater losses and an excruciating recovery.
While many forex traders focus on successful forex signals and the Return on Investment (ROI) percentage the key focus in our views should be on the consistency and the ability to withstand losses versus floating in an open drawdown.
We will discuss PAMM forex accounts in a separate article but the principle is almost identical and everything we discussed in this article is still applicable. The greatest danger in a managed forex account is if the trader mentality is damaged by either consecutive losses or a prolonged period of an open drawdown and opts for higher leverage as a result.
At the time of this writing we have been providing our forex signals for over three years. All our signals our fully documented in our performance with extreme transparency. We do not issue signals on a daily basis as we would like to control the open market exposure and limit the amount of open trades at any given time.