How it works. If a trader is trading on signals, why not sell them? True, the question is how to organize this and most importantly – where to look for buyers. The first question is solved easier. You can use indicators or fundamental analysis to generate signals. Or take advantage of analytic automated applications. For example, an application for MT4 Autochartist is a program of automatic trading signals in MT4. It recognizes the appearance of patterns (figures of graphic analysis), finds key price levels and determines the likely direction of the trend.
From theory to practice. The practical implementation of this idea can be divided into two stages: the generation of signals and their delivery to the investor. There are two ways to create signals:
- Manual signal generation. What strategy the signal provider will choose is each individual business. You can use everything from technical and fundamental analysis to insider information. A signal is a simultaneous coincidence of several factors, which makes it possible with a high probability to assume a further direction and strength of the price trend. The suppliers of effective signals are successful traders or a team of traders, for whom earning on the supply of signals is additional.
- Automatic signal generation. Launching advisors marking the most successful points for opening deals, or using special programs. Also mentioned above is the Autochartist application, more about which can be found on the autochartist website.com.
The second part of the task is more difficult to implement. There are several options for organizing a sales scheme:
- Targeted work with potential traders on forums or social networks in order to form an audience interested in signals. Signals are sent to all subscribers.
- Creating an analytical blog site that attracts readers with its content and invites everyone to subscribe to the newsletter. Signals are sent to your phone or email. It is also possible to publish signals in the blog itself. True, we can only talk about long-term trading, since the intraday account goes for minutes, the information simply becomes outdated.
- Creating your own mailing service. There are several options for implementing the idea. For example, it can be a platform with built-in signal alerts (the cost of such a platform only for binary options starts from 30 thousand US dollars, the signal provider is the platform developer). A simpler option is to order the development of a mailing service on freelance exchanges.
- Work for a broker. Most often, brokers themselves offer signals as a separate service or an attractive addition to the trading package. Conclusion: you need to convince the broker of the effectiveness of their signals. How to do it? Compose a convincing portfolio of your work with detailed statistics and go directly to the broker’s representatives.
In addition to brokers, specialized companies also provide signals, although there are not so many of them. You can subscribe to them, or vice versa, you can become a signal provider for such a company, proving your professionalism.
Recently, the signal distribution service has given way to social trading, where the same principle of copying is used, only in automatic mode.
Pros. The possibility of additional earnings.Cons. Time spent looking for customers could be used more productively. The payback of the mailing service is in question. Most services aim to entice money from the client (for example, why then the services do not have real trading statistics for these signals, but only performance statistics?). The service can only be requested by novice traders who do not know how to use Autochartist, scripts or advisors that generate signals automatically.