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FAQs: What do you mean by "Signal Life" or "Signal is valid until..."


"Signal Life" is defined as the time span (number of days) within which a trade has to be initiated. If an option’s price does not reach the "Suggested Entry Price" or trade below it within this period of time, the signal is cancelled.

We provide our members with the signal life parameter, because each day an option loses part of its (time) value as it gets closer to expiration.

The signal life parameter also prevents you from opening a trade if the market doesn't move according to our signal.

Question: An option I follow hit your "Suggested Entry Price", but I did not yet open a trade and now the price has moved up. Should I wait for another signal or should I still open a trade?

  • It all depends on your risk tolerance and personal trading style. You may wait for our next signal or decide to open a trade at the current market price ". In any case, we do not recommend opening a trade once the current market price exceeds our "Suggested Exit Price".

Important: A signal that does not lead to the initiation of a trade is always cancelled. (see “signal life”. A review of changing market situations may prompt us issue a new trading signal along with a new "Suggested Entry Price". A new signal will always cancel out a previous signal.

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3/12/2010 - SV1