How To Find Reliable Forex Trading Signals

Along with the growing popularity of the forex market, forex traders are increasingly looking for ways to increase the effectiveness of their trading despite being hindered by various limitations.

Beginner traders want to make profits quickly without the need for headaches, while experienced traders want to increase their portfolios, and traders who are busy with regular jobs want to participate in the forex market even if they don't have time to trade alone. So, because of that, forex trading signals are much sought after.

Forex trading signals can help traders to monitor and analyze market conditions, so traders don't have to learn various analysis techniques themselves, but only trade and manage capital investments.

Unfortunately, it is quite difficult to find reliable forex trading signals. You need to recognize the following characteristics when choosing a trading signal so that it is right on target.

How To Find Reliable Forex Trading Signals

In the previous article, various types of forex trading signals have been described, namely:

Signals that are executed automatically and signals that are not automatically executed.

Signals sent by software installed on the trader's computer, and signals sent by third party systems.

Signals generated based on a person's personal analysis, and signals generated based on certain algorithms.

Among the various types of trading signals, not every signal you can use comfortably. For most users of trading signals, algorithm-based signals that can be executed automatically are the favorite choice, but some traders are worried that if they use them they can actually make technical mistakes because they cannot control each execution themselves.

If you are an experienced trader who prefers to make your own trading decisions, then signals sent via Telegram may be more reliable for you than signals that are executed automatically.

If you are good at programming and understand the MQL4/5 language, then the signals generated by yourself on your trading platform may be more reliable than someone else's analysis.

For these reasons, the selection of trading signals should be according to your trading skills and habits. A trading signal that is considered superior and comfortable to use by others, may not be suitable for you. In order to check if a signal that other people recommend is reliable and suitable for your system, first try it on a demo account for some time and check some of the criteria below.

Things to Pay Attention to Find The Right Signal

Any type of trading signal that you choose, can be a reliable trading signal if you get clear information about the three things below:

1. Analysis Method Used by the Signal Provider

Every bona fide trading signal will provide a detailed description of the basis signal analysis, the default setting, and how the signal works. Pay close attention to these points.

There are signals that say they can be used in all currency pairs, but there are also those that clearly say they are only suitable for certain currencies.

There are signals that take advantage of potentially high-profit but high-risk strategies such as martingale, but many also strictly avoid such techniques even though the profits obtained are lower.

Especially if we talk about the types of automatic trading signals called Expert Advisors (EA), then there are more and more types. There are EA that can be used together with other EA, and some are not allowed at all.

There are EA that are free to use on 4-digit or 5-digit accounts, but some are not that free. There are signals that operate as usual, but there are also some that have interesting features, such as Invisible Mode and High Impact News Filter.

Each EA basically offers different privileges, depending on their characteristics. If the description is unclear, don't hesitate to contact the consumer service contact or the manufacturer, so you won't be disappointed in the future.

If you are not comfortable with the settings of an EA, then these settings can be modified. But if you are not comfortable with the way a signal is generated and delivered, then subscribing to that EA is in vain.

On the other hand, forex trading signals that are sent based on the analysis of the makers such as Autochartist and Trading Central will be very transparent in providing information about the analytical method used.

If you are reluctant to deal with signal providers who like to keep their systems secret, then just choose a forex trading signal that has been forthright from the start like that.

2. Track Record, Backtesting and Free Trial

A bona fide trading signal will provide a live track record as can be seen on myfxbook and similar services, not just a screen capture in .jpg or .png format (remember! nowadays, images are easy for anyone to edit.

By looking at the track record, you can find out since when the trading signal was active, as well as the trading results from time to time.In addition to providing live track record evidence, you can also look for forex trading signals that allow you to do backtesting and or provide a test try it for free for a limited time

Some suggest finding out the reputation of a trading signal from reviews and testimonials.Be careful though, as many trading signal providers either make their own reviews, or pay people to do them.

Don't choose a forex trading signal based solely on good reviews. Instead, keep looking for signals capable of demonstrating at least one of three things: live track record, backtesting, or free trial.

3. Supporting Infrastructure

If you are going to install automatic trading signals (Trading Robots / EA), then before using EA, you must first make sure that your broker allows the use of EA in trading. For this reason, signal makers will usually provide a number of suggestions in selecting a forex broker that is compatible with their product.

In addition, the reliability of an EA will also be determined by its supporting infrastructure, such as VPS (Virtual Private Server), internet and electricity connections, computers used, etc. If you don't want to bother taking care of various supporting infrastructure that require additional costs like that, then it's better to choose non-automated trading signals.

Many brokers already provide such signals, as well as third party services such as Autochartist and Trading Central. The majority are paid, but there are times when brokers provide them for free. By subscribing to such forex trading signals, you will receive information in the form of information on whether there is a buy or sell opportunity, in what currency, and at what price level.

Then you can choose yourself whether to trade the opportunity or not. Trade execution is done manually and signal transmission can be received via cellphone, so you don't need a VPS and you can still trade wherever you are.

In essence, before subscribing to a trading signal, make sure that you know what services you will receive after subscribing later. Examine his track record carefully. Profit fluctuating is natural, because market conditions also change.

Don't let yourself be fooled by the boasting of trading signals who claim that they can generate hundreds of percent of profit every month, because no one can be sure of profit or loss, except God. However, if a signal provider refuses to be transparent from the start, then its reliability is questionable.