day trading assistance

Day-trading Signals – Important Details for New Subscribers

Scope

We provide the Day-trading Signals for the following markets:

  • Precious Metals (gold, silver, platinum, palladium)
  • Commodities (crude oil, brent, copper)
  • Softs (cocoa, cotton #2)
  • Forex (euro, Japanese yen, Swiss franc, Canadian dollar, British pound, Australian dollar, USD Index)
  • Stocks (DJIA, S&P 500, Nasdaq, FTSE, DAX, Euro Stoxx 50, Nikkei)
  • Cryptocurrencies (signals for futures and/or one of the CFDs on Bitcoin, Ethereum, Ripple, Litecoin)

Note: Each “market” is actually a group of markets and while we will be monitoring all the above-mentioned markets, the Signals will be reported based on their availability and it may not be evenly distributed across a given group. For instance, in case of stock indices, there may be several times more signals for DJIA than for Nikkei.

Timeliness

In the Signals, we describe the situation as close to the moment of publishing as it gets. In practice, that means the situation of approximately 10-15 minutes ago. That’s highly actionable given that instead describing signals that just flashed, we are describing the signals that are (likely) going to be seen in the near future. We’re serving you on a silver platter the three key trade parameters you need: the entry price, the take-profit price and the stop-loss price. All of them are binding, which means that when price reaches a certain level, we think (our opinion), the positions should be either entered, or closed. The stop-loss price also works as the order cancellation price – if the stop-loss level is reached prior to reaching the entry limit price, it means that the trade opportunity ceases to exist. In other words, if we had any order in the system based on the previous parameters, we would cancel it in such case.

Additional Individual Choices

Thanks to providing all the above-mentioned price levels, you can immediately see the risk parameters of any given trade (how far is the stop-loss level from the entry price) and adjust other parameters to your individual circumstances. Other parameters include:

  • Trading platform and brokerage. Our signals usually involve a trade, whose size is significant enough to easily allow for profitability despite commissions or experienced slippage, but we suggest that you check your costs before acting on the Signals in practice. In particular, it should be useful to become familiar with the following terms that apply to you: commission, spreads, rollover fees, slippage, and margin requirements. We know that many individual investors are happy while using Interactive Brokers, however, we are using a managed futures program to trade our capital through Chicago-based SRB Capital Management, Inc. If you want, you can contact them using this link.
  • The amount you are willing to put up for a given trade (the rule of thumb is to make sure that no single intraday trade could erase more than 5% of the trading capital, but this amount is highly individual and will vary from one trader to the other)
  • The trading vehicle you’ll use to act on the Signal - we provide price levels for futures contracts and for CFDs that are quoted by Admiral Markets, but this instrument may not be available for everyone or not be preferred by everyone. In case of CFDs quoted by other brokers, one would need to adjust the price levels accordingly. In addition to providing the price levels, we will provide a chart illustrating how they reflect the recent price movements, which should make the above adjustment easier.
  • The leverage, which may or may not be connected with the choice of a given instrument and / or the amount of capital that is provided as collateral (futures). We cannot provide advice regarding the use of leverage; however, the rule of thumb is that the less experience one has with trading, the less leverage they should use. Of course, the ability and willingness to take on risk plays an important role as well.

Except for the discussed general rules that we outline on this page and in our Signals, we cannot provide the details with regard to each individual investor’s situation, because that would be an investment advice. We simply cannot provide such. Moreover, even if we could, we wouldn’t be able to provide a detailed reply without knowing the details regarding details of one’s financial situation, such as investment goals, liquidity needs, risk tolerance (willingness and ability to take risk), tax situation, and other important considerations.

Signal Frequency

While we may provide quick updates on a given trade from time to time, this is not the rule, but an exception. On almost all trading days we will either provide 0 or 1 Signals for a given market. 0 if we don’t find any suitable trade for a given market and 1 if we do. We will generally not provide intraday follow-ups to a given Signal on the same day, regardless of whether the trade is entered, not entered, closed profitably, or closed unprofitably. We found that the intraday follow-ups to the quick, day-trading positions rarely increase the overall profitability and we found that the additional stress associated with monitoring the position during the day results in worse quality of Signals for the following day. It makes more sense to provide the Signals one time per day at most, simply because that’s more effective as it keeps the high Signals’ quality each day. It’s also more convenient as it saves everyone’s time later on during the day.

In the vast majority of trading days (we estimate that to be more than 90% of the time), we will provide a Day-trading Signal for at least one of the markets that we cover. However, at the same time, we cannot guarantee that there will be Signals for a single market (say, for gold) on even most of the trading days. There’s almost always a day-trading opportunity somewhere, but it’s usually not present on all the markets on all days.

The no-Signal days may appear disappointing because after all, this is a day-trading service. However, whether we provide a Signal or not on a given day doesn’t mean that we are not working for you. The same amount of analysis is dedicated to the days when we issue Signals and to the days when we don’t. We don’t allow the market to impose new trades on us – we are not addicted to trading action for the sake of it, nor do we want you to make your broker a lot of profits without having much to show for it. We work for you and to your benefit and if there’s no situation on a given market on a given day that justifies a trade from the risk to reward point of view, that’s exactly what we’ll report. You will receive an e-mail from us and we will post a note on the website if there are no Signals for a given day on a given market.

There are two primary reasons due to which we may not be providing Signals for a given day. The first one is quite obvious – it’s the lack of good risk/reward situations on a given market on a given day.

The other reason due to which we may not be posting any day-trading Signals is the unpredictable nature of some days. On days when important fundamental news is released (e.g. Fed’s or ECB’s interest rate decision), or when commodity options expire, the markets tend to act in a rather unpredictable manner. In case of the former, because the investors might be trying to front run their guesstimate of the news, or the reaction is too significant in the first few hours. In case of the latter, the various parties holding option contracts might be inclined to push the underlying commodities’ prices up or down, in order to benefit from the last-day move before the options either become profitable or expire worthless.

It might be a good idea to take a look at the frequency of the previous Signals to know more or less what to expect.

Signal Severity

Once we issue a given Signal, it becomes final and binding. It will remain in place until one of the following takes place:

  • The stop-loss level is reached before the entry price is reached. In this case, the entire Signal becomes null and void – it ceases to exist and even if the entry price level is reached after the stop-loss has been reached, no trade should be entered in our opinion.
  • The entry price is reached and then the profit target is reached.
  • The entry price is reached and then the stop-loss level is reached.
  • Neither entry price level, nor the stop-loss level are reached, and we publish another Signal for the same market either on the same day (unlikely), on the following day (most likely), or in the days after the following day (less likely but still possible).
  • The week is ending and it's 2 hours until the end of the trading week. We are not keeping any positions open over the weekend, and in order to avoid the volatility that could be seen right before the week ends, we are closing all positions in advance - 2 hours before the markets' close. 

In other words, a Signal remains active until the price levels mentioned in the Signal are reached, until we send a follow-up Signal, or 2 hours before the trading week ends. Although it might be the case from time to time, we will generally not provide intraday follow-ups, so the above-mentioned follow-up Signal would be the next day’s Signal.

Trade ideas presented within intraday Signals can be at odds with trade ideas presented within daily Alerts. This is perfectly normal as the Signals aim to catch intraday moves using our specific intraday toolbox. There are just so many intraday opportunities that can’t be profitably taken advantage of on a daily timeframe. Naturally, you can choose the timeframe and approach you are most comfortable with, but you can also diversify and benefit from using a combination of our services at the same time.

Disclaimer

Disclaimer is a part of our Terms of Use, so you have already accepted it, but in case you missed this part of the Terms, we want to remind its key points also here. We are providing you with our opinions on the market in the form of Signals as we view them to be justified from the risk to reward perspective, and this is not an investment advice. We are not responsible for how you use it and in particular, we are not responsible for your trades. We are providing our best-researched Signals, but it is you who may choose to use them along with other information (see: Additional Individual Choices section above) to place your trades – we are not responsible for their outcome, you are.

Questions

If you have any questions, we’ll be happy to help. Please keep in mind that we may have already replied to your question in our FAQ section and thus it may be available to you immediately. We encourage you to check it out before dropping us a note. Of course, we'll be happy to help anyway.

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