Hi Truville
You are absolutely right.
This is a good approach and some hedge funds use it. In messages it is refered sometimes as "black box" or "model" trading.
Unfortunately it is not available for everyone:
- some novices have no idea about TA signals. They are just looking for $$$.
- it is difficult to design the proper model signal even for advanced traders. For example, it should not give you two consecutive Buy signals, etc...
- you need some kind of trading robot which will follow real prices and compute signal for you while you are playing golf.
And here come problems with compatibility to your broker's platform etc...
Of course many problems can be solved, but not on the Beginners Forum.
Some novices have a little undersanding of money management (please no offence intended). So, I've started this thread to bring different opinions on risk:reward into collision
