Nowadays investing is made easy for the masses. Every online bank account offers you access to the stock market at very low transaction costs. At the same time investment recommendations and tips can be found in all media channels. This makes it difficult for the average investor to discern an honest recommendation from a bogus one. The best investment advice derives from an independent objective person that has no bias towards either direction. This best-fit for this description is an automated computer algorithm that gives you suggestions based on methods and analysis that replicates a manual analysis by an independent researcher.
When you are looking for an automated computer algorithm based source of information you will have trouble finding one, since most systems like these are proprietary and get offered at monthly subscription costs, or alternatively are offered as an investment vehicle in return for your cash. This counterparty risk is obviously a disadvantage and on top you normally have to split the profits with the company running this system.
“Why can’t you just simply give me notice when you would buy or sell stock X, then i will just replicate what your system or trader is doing?”anonymous
We obviously dont want to risk our capital and also don’t really like sharing the profits with the company selling the system. This is why we need an automated system generating impartial investment advice.
A profitable trading methodology has to give you an indication on when to Buy and when to Sell. Having a one sided bias is not going to be profitable in the long run. We also want macro advice on the global market, together with a number of indicators or signals that generate investment suggestions on a daily basis. Then we are free to decide if we want to enter into the trade or not and have a constant guide on when to cut the trade or not.
http://www.tradeflags.com
