Forex Fundamentals·Your First Forex Trade on Markitel
Reading a Signal Card
Anatomy of an Markitel Signal Card
Every signal on Markitel is presented as a card with all the information you need to decide whether to take the trade. Understanding each component of the signal card is essential — it's the difference between making an informed decision and gambling. Let's break down each element in detail.
Signal Card Components — Top to Bottom
- 1
Asset & Direction
The top of the card shows the pair (e.g., EUR/USD) and the direction — LONG (green arrow up) or SHORT (red arrow down). This tells you which currency pair and which side of the trade.
- 2
Entry Price
The recommended price to enter the trade. If the current market price has moved significantly past this level, the signal's risk-reward may no longer be valid. Always check if the entry is still achievable.
- 3
Stop Loss (SL)
The price where you should exit if the trade goes against you. This is your maximum loss on the trade. Never move your stop loss FURTHER from your entry — only closer (to lock in profit). The SL is usually placed beyond a key support/resistance level.
- 4
Take Profit (TP)
The target price where you should take your profits. Some signals have multiple TP levels (TP1, TP2, TP3) for scaling out. TP1 is the minimum target; TP3 is the aggressive target.
- 5
Risk-to-Reward Ratio (R:R)
How much you stand to gain vs how much you risk. A 1:2 R:R means you risk 1 unit to potentially make 2. This is calculated as: (TP - Entry) / (Entry - SL) for longs. Always look for 1:2 or better.
- 6
Confidence Score
Markitel's AI confidence in this signal, from 0-100. Above 70 = strong setup. 50-70 = moderate. Below 50 = mixed signals. The score reflects alignment of trend, momentum, volume, and key levels.
- 7
Timeframe
The intended timeframe for the trade. 1H signals play out within hours. 4H signals over a day. 1D signals over several days. Match this to your availability.
- 8
Key Factors
A summary of the main technical and fundamental factors supporting the signal. Look for multiple confirming factors (e.g., trend alignment + volume increase + key level test).
Understanding Risk-to-Reward Ratio
Risk-to-reward ratio (R:R) is the most important number on the signal card after the direction. It tells you the mathematical expectation of the trade — how much you could make versus how much you could lose. A good R:R can make a mediocre win rate profitable, while a bad R:R makes even a high win rate unprofitable.
| R:R Ratio | Win Rate Needed to Break Even | Assessment |
|---|---|---|
| 1:1 | 50% | Neutral — you need to win more than half your trades |
| 1:1.5 | 40% | Decent — room for error with disciplined risk management |
| 1:2 | 33% | Good — you can lose two-thirds of your trades and still break even |
| 1:3 | 25% | Excellent — only need to win one in four trades to break even |
| 1:4 | 20% | Outstanding — very forgiving of losing streaks |
Why R:R matters more than win rate
Many beginners obsess over win rate ('I want to win 80% of my trades!'). But a trader who wins 40% of the time with a 1:3 R:R makes more money than a trader who wins 70% with a 1:0.5 R:R. Focus on R:R first, win rate second. A signal with 1:2 R:R means even with a 40% win rate, you're profitable.
Example Signal Cards
Entry
1.2680
Stop
1.2630
Target
1.2780
Long GBP/USD from 1.2680 after price bounced off the 1.2650 support zone with bullish engulfing candle on the 4H chart. Stop loss 50 pips below entry at 1.2630 (below the support zone). Take profit 100 pips above entry at 1.2780 (at previous resistance). R:R = 1:2. Confidence score: 78. Supporting factors: price at key support, RSI oversold and turning up, London session open momentum.
Entry
151.80
Stop
152.50
Target
150.40
Short USD/JPY from 151.80 as price tests the 152.00 resistance level for the third time without breaking through (triple top pattern). Stop loss 70 pips above entry at 152.50 (above the resistance zone). Take profit 140 pips below at 150.40 (at the 50-day moving average). R:R = 1:2. Confidence score: 72. Supporting factors: bearish divergence on RSI, BoJ intervention risk near 152.00, risk-off sentiment building.
Never skip the stop loss — ever
A signal without a stop loss is like driving without a seatbelt. Even the best signals fail sometimes — the market is fundamentally unpredictable. Your stop loss is your insurance policy against the unexpected. Always set it BEFORE entering the trade, not after. And never, ever move it further away from your entry. The only acceptable direction to move a stop loss is toward your entry (to reduce risk or lock in profit).
Multiple Take Profit Levels
Some signals include multiple take profit levels (TP1, TP2, TP3). This allows for a scaling-out strategy where you close portions of your position at each level, locking in profits while letting the remaining position run for potentially larger gains.
Scaling Out Strategy with Multiple TPs
- 1
At TP1 — Close 50%
Close half your position at TP1. This locks in profit on half the trade. Then move your stop loss to break-even on the remaining 50%.
- 2
At TP2 — Close another 25%
Close half the remaining position (25% of original). Move stop loss to TP1 on the final 25%. You're now playing with 'house money' — guaranteed profit.
- 3
At TP3 — Close final 25%
Close the last portion. If price never reaches TP3, your trailing stop locks in profits at TP2 or wherever you trailed it to.
R:R is king — the math doesn't lie
A strategy that wins only 40% of the time can still be profitable if the average winner is 2x the average loser. Suppose you take 100 trades: 40 winners at $200 each = $8,000. 60 losers at $100 each = $6,000. Net profit = $2,000 from a 40% win rate. That's why risk-to-reward ratio matters more than win rate.
Knowledge check
A signal shows entry at 1.1050, SL at 1.1000, and TP at 1.1150. What is the risk-to-reward ratio?
Knowledge check
A trader with a 1:3 R:R only needs what win rate to break even?