FX SMS signals are generated by a proprietary, rules-based algorithm, not by someone picking trades by hand. This page explains, in plain terms, what the algorithm looks at, what a signal contains and where its limits are.
1. What it watches
- Timeframe: the algorithm works from the hourly (H1) chart.
- Markets: EUR/AUD, EUR/CAD, EUR/GBP, EUR/USD, GBP/AUD, GBP/CAD, GBP/USD and USD/CAD, plus gold (XAU/USD).
- Hours: it monitors the market 24 hours a day while forex markets are open.
2. What it looks for
The algorithm looks for overbought and oversold conditions using a custom RSI, filtered by trend: it uses the 50-period EMA and additional trend filters so it only takes setups that agree with the broader direction.
3. How it was developed
The rules were developed on historical price data, with hundreds of variations tested before the current version was finalised. Signal results have been recorded since 2018 on the results page.
4. What a signal contains
- Currency pair
- Direction (buy or sell)
- Entry price
- Stop loss
- Take profit
- A close signal when the algorithm exits
5. How signals are delivered
Signals are posted to the free FX SMS Telegram channel and listed on the open and closed trades page. SMS delivery has been offered as a premium option; we are currently not taking new SMS members.
6. How results are recorded
Every signal and its outcome in pips is recorded and published on the results page, including losing trades.
7. Limitations
- Signals are generated on closed hourly bars; your fill may differ from the posted entry because of spread, slippage and delivery delay.
- Rules that worked historically can underperform when market conditions change.
- Losing trades and losing months happen.
Frequently asked questions
Where can I see the signals?
Open and closed signals are on the forex signals page and in the free FX SMS Telegram channel.
Does FX SMS place trades for me?
No. FX SMS provides the signals; you decide whether and how to trade them.
Which chart does the algorithm use?
The hourly (H1) chart.
Past performance does not guarantee future results. Trading forex and gold carries a high level of risk. See our risk disclaimer.
