How to Avoid Signal Failures While Trading on Forex Mobile Platforms

Analytical tools for Forex and various indicators help us to understand the direction in which the market moves and how most traders are set up. However, nobody is immune from technologies failure while working. A trader needs to be able to work efficiently, therefore, technology should be reliable.

Entrance to the Market

As a rule, traders use various indicators to open positions. In any case, there are several options for entering the market: aggressive and conservative.

Among the aggressive one can distinguish two ways:

  • entry at a current market price;
  • entrance after the candle closed.

These methods are called aggressive because they carry great risks: the price of a trading position at any moment may leap backward. Despite this, the opening position, after the candle closed, is a classic option.

The entrance to the market in the breakdown of the signal bar, i.e., input at a time when the price broke the maximum or minimum value of the signal candle, is more calm. This methodology allows you to cut off the maximum number of false links.

For example, the indicator RSI crosses the top down 70 and sends a signal to the sale. At the same time, the signal candle was closed by a significant decrease. Opening an agreement at this moment may be reasonable, but it is quite risky. This situation gives only minimal guarantees that the price will continue to decline. Thus, if the deal for sale is opened at this moment, then, as can be seen from the picture, it will lead to a loss.

If you wait for the closing of the next candle, it becomes obvious that it did not break the minimum signal. Therefore, this signal can be considered false. At this point, it becomes clear that an agreement for sale can’t be opened. Only when the second candle breaks, the minimum signal will be able to open a position for sale. If it closes below the minimum of the signal candle, this will be an additional confirmation of the possibility of opening the operation.

Similarly, it should be done with the receipt of the signal for purchase, only in this case, the second candle must break the maximum of the first one.

Disadvantages and Peculiarities of the Method

Of course, this method also has drawbacks. First of all, this loss in points is practically the magnitude of the whole candle. So, if your trading strategy is a priority of scalping, then this method is not relevant.

When using this method, there are several points when it should not be used. So, for example, with the weak volatility of a pair and in general “bearish” mood, it is better not to use a signal to buy. And, conversely, in a bullish movement, the signal for sale is also better to ignore.

The method of trading in the flow of orders, like all other methods of trading, is risky. After all, nobody is immune from a sharp change in prices, for example, as a result of the release of any news. But in such situations, it is always possible to set the Stop Loss level.

Features of Automatic Trading on Forex Mobile Terminals With the Help of Bots

You can try to earn money on the foreign exchange market. Maybe you have heard that someone was lucky, someone made a profit, using their knowledge and experience. However, there are people who, believing in numerous advertisements, buy an unlimited number of automated trading systems and are waiting for the moment to seize their luck.

To Use or Not To Use?

It is necessary to consider the automated trading system more closely. So-called “Bots” (as they are called by the developers) or the robots, in other words, are the assistants in Forex trading. Many traders, among whom there are mostly beginners, often blindly trust the electronic assistant. Is it worth it? The programs are somewhat adjusted to a certain video graph of the history of quotations. But you need to consider that any option requires a detailed layout, and is not universal. The robot is unable to think like a person despite the ability to analyze a huge number of options.

But, on the other hand, you can achieve certain positive results if you:

– carefully analyze all possible situations,

– compose a strategy for the future trade,

– and, most importantly, strictly follow the work of bots.

Common Beliefs Vs. Reality

To do this, it is necessary to exclude from trading the robot that failed. Many people believe the advertising: switch on the program, do whatever you want, and simply just prepare a purse to pack it with profit. That’s not true, as success is not possible without certain knowledge and experience.

It is worth paying attention to the fact that the new traders quickly leave trading on the Forex market as all the funds are lost. This is also due to the use of bots. After the purchasing automated systems on the Internet and uploading them to your computer or mobile phone, do not expect positive results straight away.

Using bots, trusting them blindly, beginners are at great risk. There may be a positive result for a short period of time, and then failures begin, resulting in a complete loss of all funds and withdrawal from the market. Automated trading systems fail for several reasons:

– no developer will be able to test their bots on all lists of Forex,

– the inability to predict all market scenarios.

Therefore, for a moment it’s not possible to trust the trading robots completely, but to discard them from the account is also wrong. The best option that can be considered is the use of automation of the trade process, but under own strategy. Without the knowledge of trader’s art and programming, it will be difficult to achieve great success. However, if you learn and examine, everything will work well for you.