Here are three principles that every accurate trading signals have in common. And it’s no secret what they are either. They just do not get applied as often as they must be. The application of these three principles isn’t difficult and this is the reason very few people really do them. They assume that currency trading should be difficult and pass over the obvious, for the empty promises of easy riches.
- Apply no more than 2 indicators. Regardless of what you have heard, you do not a plethora of indicators simply to see whether you went to take a trade. Besides the obvious fault of colinearity, indicators tell you the same thing since they are using the same information, it results in cluttered thinking. Simply attach two indicators that aren’t calculated using the same information and you’ll start to find accurate forex signals. Any forex system ought to provide you with the indicator which is determining its trade and make it abundantly clear which direction to trade.
- Back Test the strategy. If you cannot backtest the strategy yourself and get exactly the same signals as the seller of the supposedly accurate forex signals, then the system is worthless. If you can’t duplicate the historical trades they then are hiding something forms you. You need to be able to perform all your own testing on historical data so you can get a feel for its drawdowns and risks. One system available out there tells you that you can’t backtest because it depends on proprietary information. What they are really saying is when you saw low the system back tests, you can get your refund right away.
- Journal all your live trades. You have heard it all online, and yet so few people do it. Unsuccessful traders should not be held responsible for their trading decisions. Post them online or journal those for a trading partner to see. The reason behind this is that you’re accountable to someone for your trading decisions. If you are not accountable for your trading decisions you make the mistake and poor judgment calls. Consistent application of these three principles will result in consistent profits and provide you with accurate best fox signals.