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Manual or Automated Forex Signals?

Manual or Automated Forex Signals?

The Forex market can be utterly confusing to trade in. Sometimes, it seems impossible to know the direction in which it is headed. Other times, you find that easy to know but you are just clueless about when to enter and exit your trades. As a Forex trader, there are many challenges that you will meet along the way.

So, how do you solve those challenges? How do you emerge from the ashes of Forex trading challenges as a successful trader that you can be and should be? The path to doing that is long if you will be going all alone. The efforts can be daunting if you want to make it happen yourself. But a way to cut the path short and make the efforts less is the use of top trading signals.

But to begin with, do you know at all what signals are?

What are Forex Signals?

Forex Signals can help you shorten your journey towards becoming an expert Forex trader. They can also help to make the journey less stressful for you. As a result, they can tremendously boost your chances for trading success. But what exactly are they? How are they generated? What are they made up of? Those are important things about them that you should know.

Forex signals are essentially messages that call the attention of Forex traders to market opportunities. They inform their potential users of trading setups in the market, the right time to initiate a trade, and the right prices to place a stop and take their profit. Trading Signals Providers often require their potential users to subscribe before they can access their signals.

There are two types of signals. They are manual and automated ones. Manual Forex signals are issued by teams of financial analysts and experienced traders. Most Forex signals from social network groups are manual signals. You can also get manual signals via the MQL Network and social trading brokers.

On the other hand, automated Forex signals are those Forex signals issued by automated trading software. They are also known as expert advisors (EAs). They are based on different methods and can be extremely useful particularly when the market is in clear trends.

Both manual and automated Forex signals have their advantages and disadvantages. Although there is a lot of debate about the best one to choose, the answer is not straightforward. The right one for you to use will depend on a number of factors. That is why here, we compare both.

Advantages of Manual Signals

  • Larger Take Profit (TP): If you seek larger profits, then you should go for manual Forex signals.
  • Better risk-reward ratios: Manual signals have better risk-reward ratios than automated ones. And this is because of their larger take-profit (TP) targets.
  • Adaptability: By not eliminating human intelligence, manual signals are more adaptable than automated signals. You can become creative with them.
  • Versatility: Manual signals are more versatile than automated Forex signals. Why? Because they can be founded on and combined with different strategies (e.g. trading the news).

Advantages of Automated Signals

Automated Forex signals equally have some advantages over manual signals. Some of those advantages include:

  • Time-saving: Automated Forex signals are time-saving. You do not have to place and monitor any trade yourself; every trade is entered and exited based on the conditions that have been programmed into the software.
  • Convenience: By automating so many aspects of trading, they are so convenient to use. However, it is the same automation that makes them inflexible.
  • Fast execution speed: Automated signals are executed within the twinkling of an eye. Moreover, they do not require you to lift a finger at all.
  • Wide market range: A trading robot can track multiple markets at the same time efficiently. It will even recognize opportunities in them once the required conditions are met.

Disadvantages of Manual Signals

So, what are the disadvantages of manual signals?

  • Time-consuming: A prominent disadvantage of manual signals is that they are time-consuming. You still have to place and monitor your trades yourself when you use them.
  • Drudgery: Although manual signals remove the need to do your own analyses, the need to still place and monitor your trades every time can be stressful if you do not have the time.
  • Trade miss: If you have other commitments that you need to attend to or responsibilities that you need to take care of, you will most likely not always be on the ground to receive and execute your manual signals. This can lead to missed trades.
  • Limited market range: Most manual signals have a limited market range. However, not all. For example, at Technical Trading Signals, we cover multiple markets including Forex, commodities, cryptocurrencies, and even indices.

Disadvantages of Automated Signals

  • Inflexibility: Since automated signals are generated by computer software based on the data they have been fed with, they are not as flexible as manual signals.
  • Drawdown: Automated signals have severe drawdown. Also, they tend not to do well during highly-volatile market situations, when the market doesn’t seem to have any pattern to it.

Finally, if becoming an independent Forex trader is your goal, then manual signals are better advised. At Technical Trading Signals, we have you covered. Our manual signals provide the adaptable advantages of larger take profit (TP) targets, better risk-reward ratios, and the creativity of human intelligence. You can subscribe to them here.