What brokers can I use in order to trade on your Signals?
Particular attention must be devoted also to the choice of the broker that will execute your trades. This topic is broader than just commissions, spreads, rollovers, slippage, and margins. It also entails the trading hours and liquidity of the instrument of your choice. As a rule of thumb, it’s advisable to go with an established, well-capitalized and experienced broker headquartered in a reputable jurisdiction that provides access to the most commonly traded vehicle(s). As always, do your own diligence first. In the case of CFDs, we know that many people are happy with IC Markets, so it might be a good idea to take a look at what they provide. You can open an IC Markets account here.
There's a signal but the entry price is not touched that day...
The Signal that didn't result in opening a position is valid only for the day when it was provided (a.k.a. Day Orders).
If a given signal opens a position, how long should it stay active?
If a given Signal opens a position, then the position remains active until any of the following happens:
1. Profit target is reached.
2. Stop-loss is reached.
3. We send another Day Trading Signal on the following day (this rule applies to all trading days except Fridays and other days that directly precede "long weekends").
4. It's 2 PM or later on Friday or other day that directly precedes a "long weekend".
In the third case, we might send a Signal message without the previous Day's indication (meaning that it should be closed - in such case we would most likely comment on that), we might adjust the profit target or the stop-loss level (this is the relatively likely option), or we might leave the position intact along with its profit target and stop-loss levels (this is relatively unlikely).
In other words, if neither profit-take, nor stop-loss are reached, you will be informed regarding the position in the following Day Trading Signal, with the exception being Friday's and other days that precede "long weekends". Longer breaks from trading are relatively likely to result in bigger price gaps, which is unfavorable in case of our very short-term positions.
How will I get alerted? How do you provide the Signals?
The Signals are delivered primarily via publication on our website. Making sure that you don‘t miss anything, they are sent to you also by e-mail. These all happen in real time. To be precise, once we see a profitable opportunity emerging, we’ll immediately start estimating the entry, profit-take and stop-loss levels and once the above is completed, we’ll put it on the chart, publish it on the website and send you an e-mail notification. On average, it should take about 10-15 minutes. As the opportunity is emerging, i.e. developing, we’re making sure you don‘t miss any trade worth acting upon. The important detail here is that we usually provide Signals with entry orders that still remain to be reached. This means that usually we are sending a Signal that is not yet „in” and thus that there is a good chance that will be some time (perhaps in a matter of minutes and perhaps in a matter of hours) before the entry price is reached. In other words, there should be some (not much, but still) time to react to get the entry prices, should you decide to enter a trade based on the opinions from our Signals.
Should we see no profitable opportunity on any given day, you’d be still notified via email not to expect any new Signal for that day.
How do the Signals work?
We do not disclose the full details of our day trading strategy, but we can tell out a bit about our approach with regard to this time frame. Signals are usually provided for the middle part of a given short-term move because of its power and ease of catching. In other words, the risk to reward ratio is usually most favorable for such situations. The philosophy can be expressed as:
- Acting on the strongest intraday opportunities only
- Taking whatever adequate profit the market is willing to give us
- Focusing on consistently increasing the trading capital
The Signals process might be divided into three parts:
- We present what’s in our opinion is a promising opportunity and we post it on our website in the password-protected section
- We send you a notification e-mail with all the trade details in it, allowing for faster action on your part
- Based on our above-mentioned opinion on the market and its details, you may (it’s up to you) combine this information with your own details like risk tolerance etc. and make a transaction.
How do the Signals look like?
With each Signal, we provide the following price points (entry, take-profit, stop-loss that also works as the cancellation level).
Do you guarantee any rate of return, profits, or a number of Signals per month?
We can’t guarantee any number of signals, because it’s too analyst-dependent. Analysts are people and people sometimes get sick, have to react to personal emergencies and so on. The odds are that there will be at least several Signals per week, but because of the above, we can’t guarantee this frequency. Please keep in mind that in case of any health issues it’s better not to send any Signal at all as its quality might be impaired.
Just as practically everyone in the trading and investment business, we do not guarantee any kind of performance. Trading is a risky activity and can result in gains just as well as losses. Futures contracts, CFDs and other leveraged instruments involve substantial risk of loss and in rare cases, one can even lose more than the capital that they have on their account. We will continually do our best, but we simply cannot guarantee any kind of performance or reliability.
Do you as well trade the Signals (using the same instruments)?
We may (and are likely to) trade the Signals, but we don’t want to be obliged to do so in case of every particular signal. We may also trade according to other strategies. As explained above, there are many timeframes in which the trends can be traded. There are even more short-term oriented trends that last only several minutes. We may choose to act on the one of the other trends than the ones that are used to create the Signal. Or – which is more likely – each individual Sunshine Profits employee and associates may invest and trade according to their preferred trend, or a combination thereof.
We might also trade the moves that are too quick to be commented on. For instance, if the move that we aim to catch is starting right now and it seems likely that it will take not more than 10 minutes before the entire trade is over, we might trade it, but we would not attempt to issue a Signal as it would reach you too late to be used.
Additionally, we may (and are likely to) engage in trades that are designed to test new strategies and improve the existing ones. This is an important part of making sure that we deliver Signals (and products in general) that are only of the highest quality. As you probably experienced for yourself, testing a given strategy on a demo or paper-trading account is not enough to really verify a strategy. Therefore, before presenting something to you, we need to test it using our own capital, and this means entering trades based on a strategy that will not be available anywhere, as the service based on it wouldn’t exist yet. Some trading methodologies may become outdated and stop working and therefore it is our ethical responsibility to make sure that we’re doing all we can to detect that moment and have another strategy to switch to and/or to have strategies that we would diversify into.
Why are there no explanations for a given Signal?
Because time is a critical issue, and writing an explanation would delay the moment of delivering the Signal to you. The above-mentioned 10-15 minutes could easily become 30-45 minutes, which might mean that you miss a potentially significant part of the opportunity in question. This would be counter-productive.
Who are our intraday trading Signals particularly attractive for?
Our Signals are designed for traders and investors who want to make their trading easy and have some time to enter new trades each day. If you only want to receive a specific input without being bothered to understand the full reasoning and specifics of any given trade, then our Day-trading Signals are for you. Whether you are experienced, inexperienced or anything in between, you can find tremendous value and actionability that we share in the Signals.
What trading instruments are your Signals applicable to?
We provide price levels for futures contracts and CFDs quoted by IC Markets, however, there are other proxies for a given market that could be used, for instance, some traders may use CFDs (contracts for difference) quoted by other brokers, and some may use ETFs or ETNs. In our opinion, futures seem to be the optimal choice for more advanced traders, while beginning traders might be more interested in ETFs and ETNs as they limit the leverage that one can use (and the top reason for losses among beginning investors is over-trading, too much leverage, and too big position sizes). Having a professional manage one’s futures trades might also be a useful choice.
In case of non-IC-Markets-quoted CFDs, ETFs, ETNs or other trading vehicles, one would need to adjust the price levels that we provide for the futures contracts accordingly. In addition to providing the price levels for futures and CFDs, we will provide a CFD chart illustrating how they reflect the recent price movements, which should make the above adjustment easier. Please note that the more different the instrument is from what we provide Signals for, the more difficult it might be to achieve the similar level of profitability.
Please note that we do not provide entry / profit-take / stop-loss levels for multiple instruments in the Signals, as it would mean delaying the moment of publication, which would be counter-productive. In case of intraday price moves, timing is truly critical. Moreover, we cannot reply to questions with requests for providing such levels on an individual basis, because this might be viewed as investment advice, and we cannot provide such. We think that providing price levels for both: futures and CFDs of one broker is a good compromise, especially given the additional instructions, as outlined in the reply to the following questions.
What if I have any more 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 this FAQ section or in the general overview of our Signals and thus it may be available to you immediately. We encourage you to examine both before dropping us a note. Of course, we’ll be happy to help anyway.