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Fibosignals FAQ

Frequently Asked Questions

Please select your question

Are your services suitable for me?
Do you use the same system for every instrument?
How profitable have your signals been?
Are your returns correlated to other asset classes?
I sometimes see that signal levels in some instruments haven't updated for a couple of days? Why?
I see three numbers below each instrument. What do they represent?
A couple of your trades have been exited with stop losses consecutively. Why should I trust your signals?
Do you trade according to market fundamentals or market news?
If a new position is opened using one of your signals and neither the exit stop nor the exit limit is reached before the next signal is generated, what should I do with my open position?
I see so many buying and selling opportunities in the market, and your signals do not appear to be taking advantage of them. Why not?

Are your services suitable for me?
Our service is for any trader who is looking for an emotionless way to trade. You can use our signals as well as your own ideas, or just concentrate on our time-tested signals.

Do you use the same system for every instrument?
No; each instrument is analysed based on its unique characteristics and has a taylored set of rules.

How profitable have your signals been?
Fibosignals.com's trading signals have been profitable since inception in January 2007, returning more than 25% year-to-date in 2007. Our performance in the 2007 exceeded the performance of the major U.S. indices and most other global benchmarks including other global equity indices, managed funds, and other performance benchmarks.

Are your returns correlated to other asset classes?
No; unlike some asset classes where traders cannot establish short positions as easily as they can establish long positions, our signals focus on instruments where clients can readily go long and short with ease. Our signals perform well in both bullish and bearish equity environments.

I sometimes see that signal levels in some instruments haven't updated for a couple of days? Why?
The mathematical algorithms that are instrumental in generating our precise buy and sell signals are robust and well-developed. If levels do not update for a couple of days or more, it is because the algorithms that comprise each signal have not generated new entry or exit levels. Signals are valid until a new level is generated.

I see three numbers below each instrument. What do they represent?
a. All signals are generated using entry limits as order types to open positions. This means positions are opened at levels that are more advantageous than current market levels. For instance, if the entry limit is a sell position, it means the Entry Sell Limit level will be higher than the current market rate. Conversely, if the entry limit is a buy position, it means the Entry Buy Limit level will be lower than the current market rate. We don't believe in chasing the market with entry stops. Instead, we'd rather let the market come to our levels.
b. The second value represents the level at which profits should be taken, again with an exit buy limit or an exit sell limit.
c. The third value represents the level at which the trade should be exited with a stop-loss.

A couple of your trades have been exited with stop losses consecutively. Why should I trust your signals?
Stop-losses are crucial risk management tools that must be utilized in successful trading. Most online traders trade on margin, meaning their trades are leveraged in the market. The fact that one or more trades have been margined-out is positive because it means our system is working.
Many profitable trading systems generate profitable trading signals less than 50% of the time yet they still manage to make money because they let their winning trades "run" and they "cut" their losing trades.

Do you trade according to market fundamentals or market news?
It is impossible to trade profitably according to market news. By the time you generate a trading idea in response to some piece of market news, someone else has already placed the same trade and exploited the market inefficiencies that may have existed seconds later. Furthermore, it really doesn't matter what you as a trader think about a bit of news or the underlying fundamental situation.
Instead, it is important what big traders and the market as a whole think about market news, fundamentals, and the like. Fundamentalists can never tell to what extent news or anticipated news are already discounted in the market. On the contrary, technically-minded traders know that news and fundamentals are always 100% discounted in the market.

If a new position is opened using one of your signals and neither the exit stop nor the exit limit is reached before the next signal is generated, what should I do with my open position?
When a new position is opened using one of our signals and neither the exit stop nor the exit limit is reached before the next signal is generated, the trade should be closed at the time of the next signal update at the current market price. Our signals are intraday - and not interday - signals.

I see so many buying and selling opportunities in the market, and your signals do not appear to be taking advantage of them. Why not?
Our signals are robust and well-developed and are designed to enter and exit positions at precise levels. If you feel that you need to have more market exposure than our signals provide, our signals may not be for you. We strongly suggest, however, that you carefully review your trading objectives. Our approach has yielded real-time results for more than two years that have exceeded many conventional equities, fixed-income, and commodities benchmarks.
Our signals have not changed during that period and our performance is indicative of the fact that you do not need to have market exposure at all - or many - times to be profitable.