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Answers to frequently asked questions |
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Q: Who is your target group for this service? Q: Which markets do you cover? Q: When do you send your messages? Q: How often will I receive trade signals? Q: How does a buy/sell alert look like? Q: What does the percentage weighting mean in a buy/sell alert? Q: How long are buy/sell alerts valid? Q: Which prices do you refer to when you talk about stop prices? Q: What does a 'period' subscription mean? Q: Can I use only the intraday signals if I am a day trader? Q: What is the respective meaning of your abbreviations id, st, mt, and lt? Q: Your stops are often relatively far away from your entry levels. Why? Q: If I go online and find a message to exit a position @ the market, what shall I do? Q: Who is your target group for this service? This service is designed for any market participant with a directional risk component over short, medium or long-term time frames. Back to top Q: Which markets do you cover? EURUSD, EURJPY, EURCHF, EURGBP, AUDJPY USDJPY, USDCHF, USDCAD, AUDUSD, GBPUSD Back to top Q: When do you send your messages? As this is an alert service there are neither predetermined days nor hours. If I have identified an interesting trade opportunity I will send you an email with all necessary information normally many hours before the market reaches the entry level. So you do not need to sit in front of your screen all day long. Back to top
Q: How often will I receive trade signals? That depends on the markets. About 2 to 4 trade signals per month. Back to top
Q: How does a buy/sell alert look like? Very concise: e.g.: usdjpy mt: sell 50% @ 124.00, stop 124.50, target 123.00. The target is the profit-taking price. If the forecast resulted in a trade and the market reaches the target price, you will receive no further updates. Back to top
Q: What does the percentage weighting mean in a buy/sell alert? Each buy/sell signal is weighted by a percentage that amounts 25%, 50%, 75% or 100%. The different weightings can be understood as a ranking as to the supposed quality of a trading opportunity. The highest reading of 100% refers to excellent market opportunities with an estimated high profit probability and/or great reward/risk ratios. The ranking enables you to adapt the size of your position flexibly to the respective quality of a trading opportunity. If for example your maximum risk tolerance per trade is 2% of your trade equity, you could use a reading of 50% to risk in that trade only 1% of your trade equity. The weighting can also be used to build up positions step by step to a given size: e.g. 2 entry levels of 25% are added to make a 50% risk position. Back to top
Q: How long are buy/sell alerts valid? In the Daylight Saving Time buy/sell entry levels are normally valid till 21:00 GMT. In the Winter Time the entry levels are valid till 22:00 GMT. Signals, which are valid 'good till cancelled', are characterized as 'GTC'. A GTC forecast is valid only in the time between Sundays and Thursdays (21:00 GMT in the Daylight Saving Time, 22:00 GMT in the Winter Time). A GTC entry signal becomes automatically invalid if (a) the forecast resulted in a trade, (b) I sent an update, or (c) I sent the notification that the forecast is no longer valid. Back to top
Q: Which prices do you refer to when you talk about stop prices? for buy stops: stop bid, for sell stops: stop offer. Back to top
Q: What does a 'Period' Subscription mean? A 'Period' is not necessarily identical with a month. It may be shorter or longer than a month. A 'Period' expires in one of the following 2 cases: you have received trade signals which generated a total profit of 500 pips or more, or you have received a minimum of five trade recommendations with a total profit of at least 20 pips. In the latter case a 'Period' lasts at least one month. The next period starts one day after the end of the expired period. Six "1 Periods" are added to make a "6 Period Subscription", and twelve "1 Periods" are added to make a "12 Period Subscription".
A signal is considered an 'executed trade', if charts show that the signal price was quoted. In cases of doubt the average price of three different chart suppliers is considered as the quoted price.
The following applies: - Sell entry signals refer to bid prices - Buy entry signals refer to ask prices - The assumed bid/ask spread amounts to 3 pips - If a chart shows the bid prices, 3 pips are added in order to calculate the respective ask prices - If a chart shows the ask prices, 3 pips are subtracted in order to calculate the respective bid prices - If a chart shows bid/ask prices, 3 pips are added to lows in order to calculate the respective ask prices, and 3 pips are subtracted from the highs in order to calculate the respective bid prices.
Please note that there is no difference in the meaning of the expressions 'trade signal' and 'trade recommendation'. Back to top
Q: Can I use only the intraday signals if I am a day trader? No. On the one hand I expect that my entry levels of every buy/sell alert are close to market turns. On the other hand the target price of each signal informs you about the forecasted price direction and the potential of the expected price move. However you should take into account the reduced reward/risk ratio of a day trade, and if necessary, trade with a tighter stop than suggested in the respective buy/sell signal. Back to top
Q: What is the respective meaning of your abbreviations id, st, mt, and lt? id: intraday = 24 h st: short-term = 1-3 days mt: medium-term = 4-10 days lt: longer-term = > 10 days
The time periods refer to the estimated time between the execution of a trade and the achievement of the target price. Back to top
Q: Your stops are often relatively far away from your entry levels. Why? In todays thin and volatile markets, tight stops mean rather to accumulate losses, than to limit them. By distant stops the reward/risk ratios are indeed reduced, but I believe that the considerable increase in profit quota overcompensates this disadvantage. Back to top
Q: If I go online and find a message to exit a position @ the market, what shall I do? If the message was sent some time before your logon, ignore the message. Should you then need my help, please feel free to contact me. Back to top |
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