Trading signal programs are similar to forex robots, but instead of automatically executing the trades on our behalf they create signals and alerts and allow the trader to make his own trading decisions. In other words, these tools will do the analysis for you and then it is up to you to carry out the trade.
The challenge with this type of automation is similar to that with the forex robots but it is a somewhat milder version. Signals generated in deference to some arbitrary rules are unlikely to have much credibility in the complex and constantly changing trading environment. Of course, it is not hard to generate signals in any market: Just combine and rearrange the indicators a number of times and there will always be some that suggest a potential trade. The difference between a valid trading signal and an invalid one is only clear in hindsight. Identifying such opportunities requires a flexible analytical attitude that can balance and weigh the various inputs from many sources according to the nature of the market, the time period and the market psychology. None of that can be recognized or evaluated by a machine that will churn out the same results based on the same unchanging algorithm all the time.
One of the most important aspects of a successful trading strategy is the ability to adapt to changes. The trading signal software is incapable of doing this because it is supplied with a predefined set of rules the basic mechanism of which remains the same. Instead of wasting his time on deciding which of the signals issued by the various systems at his disposal is correct, the trader can study to refine his understanding of the markets and do his own job for himself which will be far more rewarding than the random gains or losses registered by the use of these products.
Trading Signal Options for your trading needs:
- Automated, manual signals from large banks, pension funds, hedge funds, companies and websites.
- Manual signals from social networks like Facebook, Twitter, LinkedIn, and Forex blogs.
- Automated manual signals from brokers with social trading networks.
- Automated signals from algorithmic or trade robots which can be purchased online.
- Automated manual signals from the MQL network, where you can follow and copy the trades of individual traders, or traders signaled by trading software that have been developed.