How To Use Professional Signals – Part 1

You may well know Steve Lucas and Alan Collins as the traders who provide our signals at FX Renew, but it’s not likely you know their story.

In 2007 Steve and Alan, after close to 30 years working on the Forex, fixed income, and equity desks of major banks, left Dresdner Kleinwort (a prestigious European bank) to start their own business.

At the behest of some of their top Dresdner clients, they formed a small bespoke technical analysis firm providing forex signals to institutions.  Their client list of around 40 major banks and hedge funds reads like a who’s who of the interbank foreign exchange market.

Over the years, they have achieved an impressive track record of getting the direction right on 70% of their calls.

For seven years, these signals remained accessible only to high net-worth individuals and institutions due to licencing restrictions. This was until, through a chance encounter with myself, we became able to offer their signals through FX Renew.

Not only do we send out our favourite signal each day with a standard FX Renew subscription, but traders can get access to the full service (the same one the banks and funds access) through our professional subscription.

FX Renew Professional Signals

The professional subscription includes 11 Forex signals on the London open, with daily, weekly and quarterly calls as well as the option to add equity indices and bond signals. Importantly, as the markets change, updates to the signals are issued.

You can find out more here.

You can see an example of the signals email here:

professional-signals

Here is an example of an update:

professional-signals-update

You also get access to the member’s area:

3ca-signal

But making the most of these signals requires a different mindset. They are not for the retail trader who wants to be told exactly what to do; they require you to think like a professional too.

Here are their accuracy rates for the year.

directional-accuracy

Retail Trader vs. Professional Trader

Professionals use signals in a different manner than the average retail trader (as you might expect!). Retail traders tend to want to follow the signal exactly, and may view altering the signal as a trading sin.

In contrast, the professionals rarely use the signal “as is”. Instead, the signal becomes a trusted input. They are quite comfortable modifying or trading around the signal, to fit their personal or institutional goals, and to maximise performance.

In fact, this is what we do for our daily signal at FX Renew. We have a process for selecting the signal we consider to be our favourite from the eleven available, and then we often modify the signal to fit our clients’ objectives and the fundamental picture. This leads to very consistent performance.

This is what Steve and Alan suggest you do, and this is how they have seen traders generate the best results.

There are several ways the signals can be used, which we will explore in part 2 of this article. Before we get into those, it’s important to understand three key benefits of the professional signals.

Non-correlated Systems and Diversification

To produce robust returns over a long period of time, you may want to run several non-correlated systems.

This provides an element of diversification to your approach, which will help you to produce a smooth equity curve.

Ideally, when one of your systems is not working, you can rely on another to produce results for you.

You can also use the wealth of signals provided to add non-correlated trades to your portfolio, again increasing your diversity.

Objectivity – Outsourcing Your “analyst part”

Retail traders tend to wear many hats. They are:

  • Analyst
  • Risk Manager
  • Trader
  • Business manager, and more.

This multitude of roles not only creates a heavy time burden, but it can lead to confusion.  For example, if you have a position on, it can be hard to remain objective about your analysis.

Outsourcing your analysis allows you to focus on your core role as a trader. You receive objective, unclouded information that allows you to make effective trading decisions.

Hint: You might also find that the analysis is more accurate than your own: after all, they have been doing this for over 30 years and have developed somewhat of a sixth sense for the direction.

Employing a Systematic Approach

Due to the consistent and reliable nature of the signals, you can easily add a systematic aspect to your trading. The importance of this should not be underrated.

When trading, you operate in an unlimited environment. You have no rules, apart from those that are self-imposed. This causes issues with traders who operate out of impulse, due to the lack of structure, such as:

  • Over-trading
  • Cutting profits short,
  • Not taking profit when the market makes it available.

Making your trading more systematic can be a big help in overcoming these psychological issues.

Your Trusted Source

Our professional signals serve as your trusted source of Forex market analysis.

You can rely on them for their accuracy, consistency and timeliness. You can get a free trial or upgrade your current subscription here.

In the second part of this article, we will cover some of the different ways you can use the signals in your trading.

Cheers,

Sam

About the Author

Sam Eder is a currency trader and author of the Definitive Guide to Developing a Winning Forex Trading System and the Advanced Forex Course for Smart Traders (get free access). He is the owner of  www.fxrenew.com a provider of Forex signals from ex-bank and hedge fund traders (get a free trial). If you like Sam’s writing you can subscribe to his newsletter.

 

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