If you are able to find a great signal supplier – go ahead. Keep in mind that usually the volume of the transaction is not provided in a signal, this is why you need to apply the rules of risk management on your own.
What is more important is that most probably you will get 60% of the losing signals and 40% of the profitable ones. Sounds bad? Well, this is honestly a good ratio. Just your TP should be about 50% higher (in terms of pips) than your SL.
Always test any signals provider on a demo account first.
Note, have you ever seen a forum message of a happy person made a lot of money following Forex signals ? Have you ever red about unsatisfied customers in the forum of a signal platform ?
We divide signals in two categories:
- Signals created by a discretionary trader (human).
Research show, profitable traders do not participate in signal business – so who is it you follow then ?
Put 10.000 monkeys in front of a computer with a BUY and SELL button, and some will perform within a time span – but not all the time.
- Signals generated by a computer running an automated program.
Such signal works some times, some times not – which is the best manner to explain this. A deeper explanations is, a strategy perform in the type of market it was developed to perform – if the market is changing behaviour, the strategy will stop working. —–> since strategies were developed long time ago, its a gamble if the strategy works today, and for how long.
Here are some thinks to look for if you want a good signal provider.
- Price: You won’t find a profitable and cheap signals. The good ones start at 100$ per month.
- Free trial: If they are not offering at least 1 week free trial, that means there is something fishy going on.
- No commitment: If the service provider is good, he won’t ask you for monthly subscriptikon or ask you to deposite to some partner broker.
- Reviews: Of course customer reviews are important as always.