Forex.com Smart Trading – How Does it Work?
Forex signals play a major role in trading. They notify clients about market movements and conditions – how things change in a particular period of time. When using Forex signals, customers should understand that they all provide only informational support in the trading process and are not a guide to action, so if trading is automated, there is no guarantee that it will be profitable.
Past results do not guarantee future performance. This suggests that you should not completely rely on the trading recommendations of one or another signal or the trading deals opened by it. Yes, Forex signals can make your job easier and possibly help you make the right decision, but their use will never become a universal way of working on Forex.
As a rule, many brokers disclaim responsibility for the operation of the trading signals they provide, focusing the trader’s attention on the fact that they do not provide guarantees of the relative correctness and relevance of the information provided to him. Moreover, the trader always assumes all responsibility for possible losses and damage that can be directly or indirectly caused by the used Forex signal.
Trading signals are a useful tool both for novice traders – who need help or advice and for experienced traders – as an element that provides comfort and faster income. Forex trading signals give the trader a hint – when and how best to enter a trade. A living person physically will not be able to keep track of all currency pairs at the same time, and it is even more difficult to spot and choose a winning deal.
Using Forex trading signals, a trader just waits for a signal to arrive, conducts his own analysis to check and confirm the signals, and then selects from them those that are most suitable and pleasant to him. It is not necessary to open deals for each of the received signals – those that the trader for some reason did not like, he can ignore.
How does Forex.com Smart Trading Work?
Smart trading is one of the ways to make profits in FX trading and Forex.com offers its customers smart signals aimed at improving the trading process. Smart trading from Forex.com puts the trading algorithms in your hand. You actually get ideas that are based on statistics and not opinions. Using the powerful machine-assisted algorithm, smart signals analyze historical data of the market to identify potential trading opportunities.
The smart signal engine constantly adapts to current market conditions presenting you with the most up-to-date trading signals all based on recurring-price patterns. The Smart Signal engine on Forex.com monitors 36 global markets. The platform highlights short-term trading opportunities and provides a strategy as well. SMART is the word where each letter denotes to a specific characteristic which we will review later:
- S – Statistical
- M – Measurable
- A – Algorithmic
- R – Ready-To-Trade
- T – Timeframes
How to start using the Forex.com Smart Signals?
You can start using smart signals by logging into your Forex.com web platform or mobile app. It is possible to access smart signals by clicking “more” at the bottom right of the screen and then selecting smart signals. When you open it, you will see 3 tabs: All Signals, My Signals, and Performance History. The first one shows all active and expired signals from the last 48 hours. My signals show current, previous, and favorite signals.
The performance history details the performance of each signal the last 10 times it was triggered including profit and loss in points and win rate percentage. Objective and transparent, the smart signal engine presents you with a range of short-term opportunities with each signal lasting between 4 and 12 hours. When you have selected the signal you want to trade, simply open a pre-populated order ticket. Each signal has a pretty fine algorithmically generated optimal Stop Loss and Take Profit level. You can monitor the signals with notifications on the app or platform.
As soon as you select Smart Signals either in the app or platform, you will see a disclaimer’s notice. After reading and accepting you will see the Smart Signals dashboard. The most recent signals are usually located at the top. You will see 10 recent signals both ascending and descending.
Forex.com Smart Trading – Pros and Cons
On Forex.com, when you start using smart signals, there are obviously a lot of cons that you can use to your advantage. At the same time, everything has its negative sides as well. Below, we will have a look at both advantages and disadvantages of Forex.com Smart Trading.
Let’s start with the pros. We have mentioned above that each letter in the word SMART stands for a specific feature of trading. Let’s review these features.
Smart Signals analyze over 100,000 data points every day and hunt for 800+ price action patterns which are really beneficial for clients.
You can clearly see how signals have performed and changed in the market over time. Historical data is available where you can take a look at statistics.
You do not need to be a coding expert to use smart signals. You can embrace the power of trading algorithms immediately and follow them, which will guide you through the path of success.
Each signal that you are going to choose is accompanied by a particular strategy including stop-loss and take-profit levels. This will especially benefit novice traders.
We have mentioned that each signal comes with a particular time period ranging between 4-12 hours mostly. When the signal expires you will be instantly notified, so there is no need to be puzzled.
There are not too many cons of Smart Trading signals on Forex.com. In fact, the only thing we can mention is that it has limited timeframes. Also, it is specifically directed towards FX, Indices, and Gold and does not include other trading instruments. As for other disadvantages, we can really think of one, because Smart Trading is mostly a positive feature for traders.
The Final Words
The Smart Trading platform offered by Forex.com brokers will not leave anyone disappointed. Actually, Smart Trading signals will only enhance your trading experience and provide deeper insight into historical data that will be helpful for conducting trading efficiently. Also, the platform is supported not only for personal computers and laptops but also mobile devices, including tablets. The algorithm itself provides all signals to users.
What is the time period of Smart Signals?
Smart Signals cover a period of 4, 6, 8, and 12 hours of timeframes. Of course, it would be better to have more range, but the provided timeframes are also helpful for traders who wish to observe statistics and general tendencies in the Forex market.
Do I have to pay money for trading Smart Signals?
No, there is no extra charge for using Smart Signals. Forex.com broker took care of this matter in advance, so that the users could get the maximum experience and benefits from the feature, without paying additional money. However, you do need to have the money available on your balance to start trading, but you are not limited in the amount.