Interestingly, you should actually disobey them, often to optimize the value of your trading signals. Or rather, modify some of the variables that make up them.
Moving your taking benefit is an easy way of increasing the opportunity for profit. Many Forex signal services use a fixed amount of pip when setting both the take benefit level and the stop loss. Rarely do they step in to tweak these factors as trade evolves.
Take Profit and Stop Loss
In certain cases, moving your stop loss can save a trade which is otherwise doomed. As with the gains, a fixed pip number is set to the stop loss. In addition, it often lands just below a moving average or a point of resistance. In these cases it might be a good idea to push it beyond critical point.
The manual closure of a trade could be the right course of action when a sudden, real-world occurrence rattles the asset price. The signal provider does not have a way of predicting these events. If one does, the bets are clearly off.
Trade Size
Lot size tinkering is just another path for signal optimization. Some of the FX signals which the service provides are obviously more likely than others.
You’ll be able to say which trades are what when you rack up experience. It makes perfect sense to increase the size of your lot traded on high likelihood signals. The same applies to reducing the traded number on low-likely signals.
Correlation
It’s also wise to keep an eye on linked FX pairs. For instance, if you have a signal for the AUD/USD, you should possibly apply the same signal for the NZD/USD pair too. The “inspired” trade through this approach will sometimes prove more efficient than the original one indicated by the signal.
Often traders fail to take the spread into consideration when setting their stop losses and making money. Make no mistake of that. The automated closing points change accordingly. Keep in mind that the propagation varies from one FX pair to another.
Free Forex Signals
Commonly, signal service providers use free Forex signals for promotional purposes. They make them available looking for some kind of service or product to be offered further down the line.
Premium
A premium signal service has to be provided right from the outset. Considering that these premium Forex signals reflect the bread and butter provided by the service provider, they are typically of exceptional quality.
Live/Daily Signals
In fact, the live / daily trading signals are run-of-the-mill Forex signals that are transmitted at a higher frequency. Thus, these signals are best suited for intra-day trade.
