If there is one key factor that makes all the difference in profitable Forex trading, that factor has got to be timing. Knowing exactly when to buy and when to sell will determine whether you make a profit or loss on a position. A tool that is freely available to assist in the timing of your decision is the availability of trading signals that indicate market trends.
Finding a reliable source for signals or an appropriate software package that generates these signals requires a fair amount of homework. There are a number of packages that base their track record on back testing with historical data. As we all know, back testing is no indicator of future performance in live market conditions. Look for a software package whose creators have the confidence to display forward test data using live market conditions and then evaluate the track record. Also check out the technical analysis tools that are being used to generate signals to make sure that you are getting objective assessment and not individual opinions.
You also have to be confident that the signals are being transmitted to you quickly in real-time and reflect market conditions currently prevailing. That is nothing more infuriating than receiving data that may have been useful but is now dated.
Use your intuition and judgment to check out the data before you use it in trading. If you have been trading selected currency pairs for a while, it is likely that you would keep yourself updated on the latest economic and financial developments so you should be in a position to assess whether the signal is worth acting upon. It also helps if the package includes some form of automated trading so that signals are instantly translated into buy and sell orders.
There is a new generation of Forex robots that use advanced programming techniques and innovative trading algorithms to fulfill all the above conditions. They are well equipped to operate even in the most volatile market conditions, and to make accurate predictions about short-term price trends and movement. Or you need to do is to tweak the settings for your personal preferences in areas such as stop loss, take profit, and money-management. The robot will take it from there, and monitor the markets so that your entry and exit are both perfectly timed.