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7 Indicators: Professional?

Discussion in 'Beginners Bootcamp' started by iamarto, Oct 21, 2007.

  1. iamarto

    iamarto Private

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    Someone sent me an email advertising his own MT4 Signal indicator.

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    Do you think it's possible to trade with 7 indicators?
     
  2. Pharaoh

    Pharaoh Colonel

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    In theory, the more indicators you have pointing in the same direction, the less likely the price will go the wrong way. There are (at least) 2 problems with this.

    Firstly, although some indicators may look very different, they might be measuring approximately the same basic information. This would mean that Indicator A will almost always give the same signal as Indicator B, and thus they don't really provide serious confirmation.

    Secondly, even if you have 7 very different indicators, waiting for all of them to say Buy or Sell before trading might make for safer trading, but will also mean you could be waiting for a very, very long time for all of them to agree. If they only line up once every few months (probably at 2 in the morning), they may keep you out of losing trades, but you may almost never get a shot at a winning trade.

    Yes, if it's really that good, you might set up an EA to place that "perfect trade" at 2 am once every few months. The problem with such rare trades is that it's hard to make money trading so rarely (unless you are a long-term trader, and I think most of us trade on much smaller timeframes here) without risking too much of your account. Personally, I would never risk more than 5% of an account even if I had an advance copy of Bernake's next interest rate announcement and it indicated a move that would correlate with 20 indicators.
     
  3. iamarto

    iamarto Private

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    My friend, this is exactly why I think the person who is advertising me his indicator is a big scam. Do you personally think that the indicators he's offering could ever be all UP at the same time? Sounds quite fraudulent to me.. and He's asking to pay him $40 by paypal so that he sends me the indicator (expert).

    I think it doesn't make sense to me, so I thought of taking your opinion. Thanks for providing the info man.
     
  4. 3BlackCrows

    3BlackCrows Corporal

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    Would just like to add that from what I've heard regarding the experience of traders using MT4 and associated brokers, most are marketmakers and fills and trades on EA's are less than desirable
     

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