profitable have your signals been?
ForexSignals.net's trading signals have been
profitable since inception in May 2005, returning
more than 31% in 2006 and more than 10% year-to-date
in 2007. Our performance in the 2006 exceeded the
performance of the major U.S. indices and most other
global benchmarks including other global equity
indices, managed funds, and other performance
2. Are your returns correlated to other asset
No. Unlike some asset classes where traders cannot
establish short positions as easily as they can
establish long positions, our signals focus on
instruments where clients can readily go long and
short with ease. Our signals perform well in both
bullish and bearish equity environments.
3. I sometimes see that your signal levels haven't
updated for a couple of days? Why is that?
The mathematical algorithms that are instrumental in
generating our precise buy and sell signals are
robust and well-developed. If levels do not update
for a couple of days or more, it is because the
algorithms that comprise each signal have not
generated new entry or exit levels. Signals are
valid until a new level is generated.
4. I came to Forexsignals.net expecting to trade
every day but the signals are only generating
trading opportunities a few times per year. Why is
You don't need to trade every day to trade
profitably. Risk management is the most crucial
element in the generation of our signals and they've
been structured to generate market exposure only
when inefficiencies arise in the market. Successful
trading involves the management of risk, and when
traders cannot exploit market inefficiencies for
profit, it's best to remain market-neutral and in
cash (i.e. flat).
5. I see three numbers below each instrument. What
do they represent?
a. All signals are generated using entry limits
as order types to open positions. This means
positions are opened at levels that are more
advantageous than current market levels. For
instance, if the entry limit is a sell position, it
means the Entry Sell Limit level will be higher than
the current market rate. Conversely, if the entry
limit is a buy position, it means the Entry Buy
Limit level will be lower than the current market
rate. We don't believe in chasing the market with
entry stops. Instead, we'd rather let the market
come to our levels.
b. The second value represents the level at which
profits should be taken, again with an exit buy
limit or an exit sell limit.
c. The third value represents the level at which
the trade should be exited with a stop-loss.
6. A couple of your trades have been exited with
stop losses consecutively. Why should I trust your
Stop-losses are crucial risk management tools that
must be utilized in successful trading. Most online
traders trade on margin, meaning their trades are
leveraged in the market. The fact that one or more
trades have been margined-out is positive because it
means our system is working. Many profitable
trading systems generate profitable trading signals
less than 50% of the time yet they still manage to
make money because they let their winning trades
"run" and they "cut" their losing trades.
7. Do you trade according to market fundamentals
or market news?
It is impossible to trade profitably according to
market news. By the time you generate a trading
idea in response to some piece of market news,
someone else has already placed the same trade and
exploited the market inefficiencies that may have
existed seconds later. Furthermore, it really
doesn't matter what you as a trader think about a
bit of news or the underlying fundamental
situation. Instead, it is important what big
traders and the market as a whole think about market
news, fundamentals, and the like. Fundamentalists
can never tell to what extent news or anticipated
news are already discounted in the market. On the
contrary, technically-minded traders know that news
and fundamentals are always 100% discounted in the
8. If a new position is opened using one of your
signals and neither the exit stop nor the exit limit
is reached before the next signal is generated, what
should I do with my open position?
When a new position is opened using one of our
signals and neither the exit stop nor the exit limit
is reached before the next signal is generated, the
trade should be closed at the time of the next
signal update. Our signals are intraday - and not
interday - signals.
9. I see so many buying and selling opportunities
in the market, and your signals do not appear to be
taking advantage of them. Why not?
Again, our signals are robust and well-developed and
are designed to enter and exit positions at precise
levels. If you feel that you need to have more
market exposure than our signals provide, our
signals may not be for you. We strongly suggest,
however, that you carefully review your trading
objectives. Our approach has yielded real-time
results for more than two years that have exceeded
many conventional equities, fixed-income, and
commodities benchmarks. Our signals have not
changed during that period and our performance is
indicative of the fact that you do not need to have
market exposure at all - or many - times to be
10. Are your trading signals optimized or
No, our trading signals are neither optimized or
curve-fit. The optimization of trading signals
usually results in an algorithm that is geared
towards a finite amount of historical data, and does
not take the randomness of price activity into