Trade idea is a complementary tool to your trading experience and expertise. Bear with me and I will explain.
It is important to realize a trade-idea is not considered a signal, it does not necessarily indicate to go long or short for a trade.
So how should I use a trade idea?
It is a complementary tool to your trading experience and expertise. However, it does not take priority when it is in conflict with your protocol of dealing with the markets. Bear with me and I will explain.
You are an experienced trader, you have a feel for the market, you have set some basic ground rules, which you have stuck to up until now. These ground rules have kept you in the game and hopefully generated some profit for you to enjoy.
For example, lets say you always stick to the rule ”I don’t trade for the first hour of S&P opening”. You have learned this through experience and it is part of your style as a trader.
In this case, the trade idea should NOT override your rule, you should ignore any trade idea that conflict with your rules. Even if the statistics look promising, trust the rules that have served you so well up until now.
So what really is the use of them?
Trade ideas give you all the relevant information that you could need. It shows you where to focus your attention (i.e. which instruments are most relevant to trade now) and it gives you an idea of reasonable profit and what movement to expect. It can even generate for you new area to explore. However, it cannot tell the future, no one can. It can prepare you, but it needs to be in conjunction with your own skills.
Another example: you are involved in a trade idea which has a profit target which is 150 pips, which has been detected with significant data usage, this is a very starting point.
You are reading the charts and from your experience, you can see clearly there is a resistance at 135 pips, do you go with your experience and take the majority of the trade at 135 pips or do you hold out for 150? The best tactic to utilize would be to combine both methods to gain an edge. The trade ideas are statistical markers, combining them with your expertise is what makes the difference.
My personal recommendation is to try to master a few markets (3, max 4), this way you can really benefit from the trade ideas combining your expertise. Once you know a specific market’s dynamics , how it moves and its tendencies, you can really benefit massively from trade ideas.
It supports you with the abilities equal to a full team of analysts.
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