Forex signals are an extraordinary method for expanding your prosperity available and they could empower you to put forth more significant yields with negligible attempt. Valuable for first-time and experienced traders. Forex signals give you a knowledge into how different traders are profiting from trading stocks and permit you to imitate their Forex exchanging methodologies. FX Signals can be an ideal method for perceiving how the market functions however before you begin, why not investigate a Tie-Breaker!
If your trading system is anything like mine, it will sometimes generate signals that conflict, telling you to go both long and short at the same time. Or alternatively, it may generate no signals at all, essentially saying, “sit this one out.”
A clear trading direction Is important
For me, this occurs most often in situations where the market has been ranging for a while, and my formulas are having a hard time picking a clear trading direction out of the noise. Some people would decide to stay on the sidelines in these situations, concluding that there was insufficient information to make a clear prediction and having the discipline to step back from their trading system when it’s giving no clear signals. But not me. Since I have a tendency to overtrade – getting into the market even in ambiguous trading situations – of course, I had to find a way to extend my system to resolve these types of “ties.”
Signal is equal to pip value
The solution was to run a bunch of backtests with the criteria “IF Long Signal = YES and Short Signal = YES” OR “IF Long Signal = NO and Short Signal = NO,” which show results in all hypothetical long and short trades. This gave me a pip value for whether the market tended to go long or short in these situations. As it turned out, when my signals are tied, the market tends to go long. So, in essence, I’ve forced a new long signal out of my system and have also ensured that it will always provide a usable signal for trading.
Now I can indulge my desire to (over)trade every day and not miss any action, but in a way, that’s at least based on historical data. No more frustration over conflicting signals!
