Forex Signal Providers & Automated Forex Trading

In some previous posts, i was mentioning that one of the most effective ways to trade is by getting a solid grasp on Support and Resistance and Candlestick Analysis. Nothing has changed and i still believe that with 100% conviction. But not all traders are built the same and therefore what i consider to be the best may turn out to be the worst thing for another.

Having said that i would be doing the readers of this blog a serious disservice by not expanding my discussion to other types of trading - which brings me to the topic of this post: Signal Providers and Automated Trading

The fact of the matter is that S&R and Candlestick analysis take time to learn. They probably take more practice than any other style of trading out there. All the literature you get your hands on will tell you that trading has to be kept objective, but trading these methods is considered, by some, to be very subjective and time consuming to back test.

Many traders feel much more at ease with a method that is 100% mechanical, void of any judgement and subjective interpretation. This style of trading is very practical to program and quickly backtest because trading rules are extremely precise. It is, to this group of traders, the best way to remove emotional interference from the trading equation. These arguements are the primary reasons we see automated trading growing in popularity so quickly.

Signal Providers are now, more than ever, providing complete automated solutions to traders. Essentially, they provide you with buy and sell recommendations and automate the execution of the trades for you on your brokerage platform with the ability to override trades if you so choose.

I wrote an article outlining several things to watch out for when choosing providers and under what cicumstances traders can use them successfully because let's face it - there are many scams out there. I won't rehash it here so feel free to read it here if you haven't already. http://www.goarticles.com/cgi-bin/showa.cgi?C=1107835

What i want you to take away from that article is the importance of managing your expectations and CONSERVATIVELY testing everything out for yourself. Question everything and never take anything for granted and you will come out so far ahead of other traders who don't bother. Every action you take should ensure you are protecting yourself.

If you read my article and are 100% serious about my guidelines, then you're ready to give the Automated Forex Trading System by PROSIGNAL a look. I have personally used these guys when i started trading about 6 years ago and they are still around today. They have evolved into something quite impressive as far as automated trading goes.

The way thier automated service works is this: Have a look at the performance data of the 200+ signal providers Prosignal has partnered with and decide which combination of strategies appeal to you the most. You then create a portfolio of providers that PROSIGNAL will trade for you through your brokerage platform.

Why i like PROSIGNAL in particular?

• Creating a portfolio of so many providers allows you to effectively diversify risk
  
• You have the flexibility to trade strategies from only 1 provider to as many as 100.
  
• Loads of statistical data provided to help you decide which providers are best
  
• PROSIGNAL provides plenty of sensible guidance to help you create your ideal portfolio (In my opinion, use a portfolio of providers that offer a profit factor of 1.5 or higher, at least 100 trades on record and a tolerable drawdown relative to total profit)
  
• Performance history also includes live trading results
  
• PROSIGNAL takes education seriously. They have a complete educational package to help get you up to speed on FOREX basics, risk management and trader psychology.
  
• They have phenomenal customer support
  
• Low cost trades.
  

WORD OF CAUTION:
It is very easy to look at the performance pages and get excited. Stay calm and objective and realize that what and how you trade will be dictated by a conservative risk management plan and how capitalized you are. You may or may not duplicate posted results.

In my experience, the posted results are legitimate, Prosignal is legitimate, and you can make money with them. But as with any style of trading, proceeding conservatively and patiently and protecting your downside risk is the only way to go, especially in the beginning. What i like most about Prosignal is that they are very open with this notion. Just decide upfront whether trading a black-box system fits with you. If it does, i truly believe there is no better choice than PROSIGNAL.