Let's talk about trading signals today. Many novice traders write to me that the signals do not work and this is pure fraud. But is it really so? Let's figure it out!
Firstly, it is worth immediately clarifying the fact that there are many scammers and really good signal providers on the market today.
Secondly, if the signals were a scam, they would not have gained such popularity among traders.
So what's the catch?
A signal is a software algorithm that is generated based on various market indicators. It is impossible to perceive it as a 100% result, because it is only a recommendation based on several indicators, and the market is a complex system, the activity of which is influenced by too many factors that none of the developers are able to take into account, at least today.
So what to do?
A competent approach to the use of signals and assessment of the market from different angles, a well-defined trading strategy, in my opinion, is the basis of your success.
An excellent option for using signals is described by the xSignals provider on his blog in the article "How to use xSignals". This provider is sure that the key to success in trading is an integrated approach, therefore it provides maximum information on the market in a convenient graphical form.
If you focus on one signal, then your trade is probably doomed, because you need to take into account various technical analysis indicators and also heatmaps, which must also be bright green for a successful transaction.
Simply put, for a successful forecast, you need various market indicators to confirm the signal's forecast. And you can’t focus only on the Buy or Sell command.
What is important to pay attention to when choosing signals?
Before you select certain signals, you need to figure out how they work, what algorithms the developer uses, whether they are suitable for working on a particular market, and whether the signals correspond to your trading strategy.
This information should be maximally disclosed on the developer's website and publicly available, because a responsible signal provider understands the importance of informing and values its reputation.
For example, I am attaching a link to the section on how xSignals are formed, where you can get acquainted with signal generation algorithms, their structure and how to use them in a simple and accessible way.
Summarize.
Before using the signals, test them on a demo account of your broker and remember that the key to your success will always be strategy and money management.
