Forex Signals in the Forex Market 2016
Since 2014 when we launched the Foreign Exchange (Forex) market has changed dramatically. We have witnessed the central banks taking drastic measures in order to revive the economy, thus affecting the currency correlations in the market. When the currency correlations began to naturally mutate many signal providers and automated trading strategies that are commonly used in the MetaTrader4 (MT4) began malfunctioning.
Many signal providers that were focusing on EURUSD were scarred by safe haven flows Euro Dollar has been enjoying in the Forex market, which is a small part of the mutation we have referred to earlier. As our subscribers already know, the European Central Bank (ECB) target was on growth rather than a weak exchange rate.
The Fed on the other hand targets a weak US Dollar in its monetary policy, which is another reason Euro Dollar has been triggering stops in its recent gains in the past several months.
Forex Signal Providers Continue to Promise
Although we are in 2016 we are still witnessing many signal providers promising the world, claiming to guarantee thousands of pips in matter of days while some opt for a ‘less exaggerated’ approach claim to profit in 30 days. If you are new to forex signals or to the market itself a profit can never be guaranteed regardless of your trading strategy.
Social Trading, the Pressure to Profit
The signal providers industry continue to compensate signal providers from the spread, which motivates scalpers to join to the numerous programs. Scalping is a trading strategy where the signal provider aims to profit several pips, often between 3 – 5 pips, sometimes even as much as 15 pips.
The more trades the signal providers executes the higher his or her commission would be. The platform that hosts the signal providers enjoys a cut from the spread so there is little interest in evolving the mainstream signal providers industry.
If you have been burned by a signal provider that used scalping as his or her trading strategy in the Forex market it was probably due to the intense pressure of producing results and ensuring countless of trades are provided to increase his or her commission.
As the Forex market constantly changes many algorithms and automated strategies posted hefty losses rather than profits, mainly in Euro Dollar as we explained earlier. It is one of the biggest flaws of using an automated software for trading as the software must be manually adjusted to the current market conditions.
If the developer does not tweak his or her trading strategy the algorithm may spiral out of control, especially if the notorious martingale is used. It has definitely been a rough start in 2016 for many Algo traders.
DDMarkets Hybrid Forex Trade Alerts
Aside providing the actual trade alert we also monitor the markets around the clock and provide updates until the trade is closed.
The updates consist of general market updates, partials’ realization and shifting the protective stop above the entry or adjusting the take profits. In rare occasions we increase the size of the stop loss. We have been providing our trade alerts research for the past 2 years at the time of this writing.
No Scalping Signals
We are not fond of scalping in the Forex market. We have much respect for scalpers but our tactical approach targets over 100 pips per trade as we do not use short time frames such as the 5 minutes for deriving our trade alerts. We focus on the daily, weekly and monthly charts that often contain the ‘intraday noise’ so the intraday price movements are less concerning us.
We do provide a separate plan for intraday traders where the 4hr chart is used, which is more appropriate for day trading.
Is the Signal Performance Real?
The main concern of using a forex signal provider is the authenticity of the signals. It’s not difficult to forge a trades performance and present stunning results to online traders. What we do at ddmarkets is simply document every trade alert we release.
For example, let’s say we have a long entry in EURUSD. We outline our technical or fundamental reasons for anticipating EURUSD gains in the Forex market, screenshot Euro Dollar chart and upload the strategy to the website.
As the trade progresses we continue taking screenshots of the charts every time we issue an update on the trade alerts. In addition to the forex trade alerts being updated to the website with the charts, the trade alert itself and any updates that follow are sent via email to our subscribers.
After we release a trade alert the link to the strategy is published on our Facebook page, which can only be accessed by our subscribers. Once the trade is closed we unlock the strategy and it can be reviewed by everyone, dating back to 2014.
Extra Trading Flexibility
In managed forex accounts such as Multi Account Manager (MAM) or Percentage Allocation Module Management (PAMM) the money manager is in charge. The trader that gave his or her consent to the money manager have zero control over the trades that are being executed on their behalf.
With DDMarkets every trader understands why we decided to long or short the currency pair and why the protective stop loss order and take profit are placed on certain levels. The trader may at anytime exit the trade, increase or decrease the position size form trade to trade and even enter the market in a different price. If the trader disagrees with our views the trade doesn’t have to be taken and can be easily dismissed.
Swing Trading Benefits
The main advantage of using the daily, weekly or monthly charts is that it does not require the trader to be glued to the screen all day. Trades from intraday signals must be constantly monitored, which may nor suit all traders. As many forex brokers offer a mobile platform if we do send updates throughout the day every trader can easily access his or her trading platform from any mobile device.
The expected Return on Investment (ROI) is generally higher with swing trading strategies but it greatly depends on the actual trades’ size.
Aside being transparent in our forex trade alerts we offer competitive pricing on all our trading plans. We understand the importance of profiting in the market and paying high fees may dent the ROI regardless of the quality of the trade alerts.