Short-hold signal services face an arithmetic problem: the shorter the intended hold, the larger the proportion of the move consumed by spread, commission and slippage — and the more your own execution speed decides the outcome.
Do the cost arithmetic first
Take the service's stated signal frequency, multiply by your round-trip cost per trade on the relevant instrument, and compare that figure to the typical target distance the service publishes. If cost is a large fraction of target, the strategy depends on execution quality you may not have.
Latency sensitivity
- Notification delay on mobile devices.
- Time to reach a trading platform and place the order.
- Spread widening in the same interval.
- Requotes or rejections on fast markets.
Account conditions matter more here
The same short-hold signal can be viable on a tight-spread account and unviable on a wide-spread one. Assess the service against your own account conditions, not against the provider's.
Leveraged trading involves substantial risk of loss. This guide describes mechanics and does not recommend any approach.
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