Auto trading signals

Hi All,

What is the best/most cost effective way to auto trade an email signal from a signal provider. I know there are a few services out there, some charge in the spread, and some charge a monthly rate. Is there a broker that offers this service free? Can it be done with MT4 somehow? Love to hear your feedback.

cq

Cre
I have looked into a variety of signal providers and even subscribed to one early on in my trading. My thought was that since I was new to Forex and not succeeding that I might learn how to trade Forex by watching the signals and hopefully make some money too.

There were several problems however,

1) Even if you get good signals you still need to have a good understanding of money management. You can bust up your account with good signals and poor MM.

2) The signals came when I wasn't ready. There were times when I was away from the computer and didn't feel comfortable placing a trade without seeing the price action on the chart. I knew that trading blind was not a smart idea even if I was trusting a supposed expert.

3) There are some brokers that provide signals but only if you have certain minimum amount. A lot of these signal providers are better at marketing than they are a giving good signals. Signal providers are always looking for new clients. Mmmmm, I wonder why?

4) I have had for more success in Forex by learning everything I could myself by reading, testing, analyzing, creating different chart setups, and basicly soaking in everything I could get my hands related to Forex. Eventually, after much study I came up with my own system that works for me. The signal trader has no idea what my risk tolerance is, but I have learned through much trial and error. The signal provider does not know what my trading style is, but I have learned

5) A lot of signal providers try to reach a broad number of clients by offering signals for a long list of pairs. The temptation is to try to trade a signal when it comes even if it is from a pair that you have not studied. I now only trade pairs that I have studied their pair characteristics and can keep track of on a daily basis. You cannot master Forex if you do not master a pair's characteristics.

6) Signal providers do not always tell you how you should set your stops, exit your trades or using other profit protecting techniques with their signals. If you get a good signal you still need to know what to do with it.

For what it's worth, I do not recommend signal providers if you want to learn Forex and be successful.

Thanks for your feedback KudzuFX. I know most people on this forum seem to be quite adverse to signal providers, and I know that many of them are shonky (I have experienced a few). here is my response to those points...

1) Agree 100%. Having said that, for me personally, my forex skills need some sharpening, but I have confidence in my MM skills. Unlike the trading side of things, MM is pure mathematics, which happens to be a strength of mine.

2) The fact that the signals came when you were not ready is the exact reason for the post, looking for a way to automate it. I know you said you are not comfortable with this, but for me, I would do this on a demo account for a couple of months, and if I found it profitable, and consistent with that being reported, then I would feel comfortable to go live starting small.

3) Yes, there are some crap signal providers. I guess you have to keep looking until you find one. You talk about "I wonder why they are looking for new clients"... They are a business, all businesses are looking for new clients. There is a common thought that if thier signals were any good they wouldn't sell them, because they would make money trading them. I strongly disagree. The average signal provider charges about $150 USD per month for their signals. Being in marketing myself, I have no doubt that if these signals did what they say it does, and given a small outlay, I could sell 1000 subscriptions very quickly, and probably over 10,000 given a little time. This equates to $1.5mil income per month. This would be more than they would earn trading. I know you probably don't believe you could sell so many subscriptions, but think about it, every man and thier dog wants to get out of the rat race, trading for a living is about half of the worlds dream. If you can show people how to do it, it is an easy sale. I won't go into how to do it here, but if you want to know more, PM me. Also, if anyone is a consistently profitable trader, and would like to go into business doing just that, PM me.

4) You just have to find a signal provider who's signals suit your style. As for risk tolerance, you still have a fair degree of control over that, since you are controlling the money management. What you are saying about earning more doing it yourself, I see this as hedging my bets. I will learn everything I can (which is why I am getting involved in this forum), and I will develop my own strategies. Signal providers are just another string to my bow.

5) Again, find a signal provider that suits you. There are enough of them out there.

6) Don't use those ones.

Well that was a long one. Still interested in knowing the best way to automate this if anyone has any feedback.