Frequently Asked Questions

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 ForexWnk.com expecting to trade every day but the signals are only generating trading opportunities a few times per week. Why is that?

Although our average trades per day is 2 trades. 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 signals?

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 market.

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 profitable.

10.  Are your trading signals optimized or curve-fit?

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 account.