DislikedTbh it makes no sense at all to me after spending hour up on hour creating and testing a method/system, sorting reasonable targets and stops adding rules, then from time to time ignore all the effort you have made How can you create a money-management method based on your method/system and test results if you do not have the discipline to take a stop, or even get a little greedyIgnored
Now, suppose you trade this system on a day where some unexpected good news breaks in the markets. Say the FED decides to keep the interest rates low when the mkt is pricing a hike, or the news of certain war peace agreement hits the wires. Now if you trade your carefully designed system you're going to enter the trade short in the retracement and the price will take off from there resulting in your maximum loss, or worse.
Big money will design a system that will take into account many more factors, including the market sentiment, the news, the analysis of what other MM are doing and further, their own undisclosed to the market information or analysis. More often than not, they also take into account something called the "human factor". That is, the human bias is baked into the formulas and the system accounts for them. This is the only way you can be ahead of the markets.
If you know that something just happened in oil, you're going to trade it *now*. A fully automatic, but dumb system will wait until the price moves because the indicators that are reliable are slow while the fast ones are very unreliable.
Off course, there's a way to design higher frequency systems (i don't mean HTF, I mean 1-60 seconds systems) that are quite reliable and use market dynamics and microstructure. In these systems retail is still at very big disadvantage, but it's possible to prosper using low capacity algos, living off the pockets that are not tradable with higher capital. You'll need something better than an MT4 tough and a proper connection and broker to the market. But this is another story and FF is probably not the right place for it.
Ok, HTH I think I gave you enough food for thought and research.
Wealth is not built in a day.
Makes me think of what a former colleague, who used to run the algo shop for a major investment bank, used to say: There is no algo that is profitable all the time, and the trick is to know when to turn them on and off. And only in the millisecond timeframe can you make money without discretion. Personally, he didn't think he'd be able to make a living from trading on a retail platform.
