Signal service

An alternative to marketing a Forex trading strategy as an Expert Advisor are the different forms of a signal service. A major advantage for the provider is the protection of the trading strategy from illegal copies, as the strategy itself never leaves the provider’s sphere of influence and only the result – namely that Signal – is communicated. Programming knowledge is not absolutely necessary to set up a signal service, so manual strategies can also be made available to a wide range of customers.

For the customer, a signal service offers both advantages and disadvantages. Advantages – especially when differentiated from a managed account – are the free choice of broker and the possibility to intervene manually in the trading strategy. Disadvantages can result from an insufficient degree of automation and a possible time delay in the implementation of the signals offered.

costs

On the cost side, too, there is a signal service between buying an forex Bonus and a managed account in south Africa. In contrast to an EA, there is usually no fixed purchase price but a monthly fee similar to a subscription – the costs often exceed the purchase price of an EA quite significantly after just one year. In contrast to a managed account, with a signal service there is no success commission and no additional costs hidden in the brokerage fees.

Since the monthly fees are often in the region of USD 100 (possibly with a discount for quarterly or annual payments), a signal service usually requires a significantly higher share capital. The planned monthly profit before costs should be at least twice the monthly fees. A signal service that strives for a return of 5% with monthly costs of USD 100 therefore requires a starting credit of at least USD 4,000. Of course, a smaller amount of credit can be used to test a strategy, but the test months will hardly cover costs.

implementation

There are various ways to follow a signal provider, these differ mainly in the degree of automation and the control and filter options of the customer.

Manual signals

In the simplest form of a forex trading Australia service, the signal provider provides the customer with manual trading signals, e.g. in the customer area of ​​a website, by newsletter, by email or by SMS. This can be done several hours in advance in the form of a verbal pending order or almost in real time.

Whether and how the signals are implemented is entirely at the discretion of the customer. Since permanent monitoring of the signals is hardly possible, there is always the risk of missing individual signals or of not implementing signals until they are actually no longer valid.

Trade copier

In another widespread form of signal service, the provider uses a trade copier – an Expert Advisor that copies the trades that have been made on the basis of the trading signals on a master account of the provider to the customer’s accounts. Some providers develop their own EAs for this, but there are also a number of standard products such as Signal Copy, which can be easily licensed.

Especially in the case of short-term strategies, the “detour” via the trade copier can result in a disadvantage. In a first step, the trade must first be implemented on the signal provider’s master account and then passed on to the trade copier. Only then is this information forwarded to the customer’s trade copier, where this order must then be implemented. Depending on the market environment, the time lag when opening or closing positions can make a difference of a few pips, e.g. a scalping strategy can already make it unprofitable.

Depending on the characteristics of the forex trading usa copier or Broker used, the customer usually has the option of specifying the risk and lot size, the currency pairs used, the number of positions and other parameters. Good EAs also offer trade management, with which the temporal validity of the signals is controlled and e.g. a maximum slippage between the order on the master account and the position to be opened on the customer account can also be set.

Signal platform

Signal platforms are another alternative to using a forex Canada These are mostly web portals that have concluded appropriate sales agreements with signal providers and take care of the technical and administrative implementation. The portals often offer a wide range of signals, with the advantage that they are processed using a forex trading sa architecture and not separate EAs for each signal