InfoRe: The system is not a set of indicators

#11
I would like to be more participatory in this forum, and I created this topic to talk about my opinions, whether they are right or wrong. But the fact is that I do not have much time or patience to try to expose what I think, because I spend a lot of time thinking about how to explain this in English. But continuing now a little more...

I think most of the price moves are ramdom walk, but there are some moves that actually give us an idea where they will go next although they are not 100% reliable. Patterns and indicators help to have a mathematical strategy so that our emotions do not interfere much. The problem is that when we follow a strategy more day or less day it starts to fail a lot, that is why we are always looking to improve our system. In fact we are not improving the system but rather changing to adapt to the current market.

The question is what are the indicators and what patterns can we take with us always?

I think the strongest indicators are the RSI and with their furniture averages that also help aka TDI, and trend lines with some patterns.

The parameters of the indicators can be changed to better adapt to the market, which means that I do not think there are the best parameters for everyone to make things work. In studying these indicators, I realized that there is a lot of information that does not seem right for me to get the best out of them.

For example the RSI also creates trendlines, and the over-import of the level of 50. The importance at this level is sometimes not the crossing but rather the re-crossing that in price can be seen as the first reverse pattern 123, and where the resistance fractal has become support if it is buy position. In fact I think that a trend line is exponentially more reliable if it becomes support / resistance or resistance / support. They can work only with breakout, but if we analyze it well it seems ramdom walk, sometimes it works, sometimes not. The break out also has a lot to tell you. it is necessary to analyze the time of the small break out and the time of correction, and for having that correction I am speaking of it, to be accurate, the correction must never have much less time.

One of the things I see happen is the traders bugging at the fickle little timeframes to go to bigger ones. I think all timeframes work, but in a big timeframe the market and more constant time in the movements. Is difficult to explain, but the tools that are used in the various strategies and that are transversal, also work in small timeframes. The news is something that needs to be careful in small time frames, but also in the big ones. I can see a trade in a timeframe of 1 minute that gives me a stoploss of 15pip and target of 20/30pips, and I see the same thing in a 15min. It is all a matter of notion of what happens and evaluate the movements.

The trade in the end does not have many aspects that can be reliable. For me the entries have to be a reversal. If you can not see the waves, lower the time frame until you can see... and here comes another part... make trade in several timeframes is to have a capacity of analysis in several time frames, which is different from who makes trade in 2 or 3 or 4 static timeframes. Sometimes I see what happens in the time frame of 1 minute and I'm going to upload up to 1 week looking for an entry if it does not come, change the currency and look again from the smallest to the largest. Sometimes we want this to be mathematical, but we begin to impose rules that come out of our head. It is difficult to try not to be obsessive compulsive in what defines the true patterns.

The more bumpy the graph is, the more patterns we see, and in fact a bumpy graph is an uncontrolled consolidation and ramdom walk. Tell me what I am wrong so I try to improve my opinion.


Re: The system is not a set of indicators

#12
Lithus Insanemind wrote:
Wed Feb 14, 2018 1:36 am
I would like to be more participatory in this forum, and I created this topic to talk about my opinions, whether they are right or wrong. But the fact is that I do not have much time or patience to try to expose what I think, because I spend a lot of time thinking about how to explain this in English. But continuing now a little more...
Hello, I experience zero: I want to give you my opinion anyway: It seems that they want us to believe that the various indicators are useful for something, they are useless, I think it's like a battle attacking first or defending, then hang up, the important thing is lose a few soldiers in combat and in the final victory.
The perfect indicatoris our head ...

Too many indicators confuse the head

Re: The system is not a set of indicators

#13
Trading without indicators is absolutely impossible! My feeling is: this forum or other places, there are many indicators that are clearly accurate, but looking at almost all trading systems published on the Internet, the core is still indicators-and the accuracy is extremely poor (you can see from the eye , You don’t need to use historical data, software or indicators to measure), very strange! :D

Re: The system is not a set of indicators

#15
太虚一毫 wrote:
Thu Apr 08, 2021 12:44 pm
almost all trading systems published on the Internet, the core is still indicators-and the accuracy is extremely poor
I agree. There is just something interesting and fun about using indicators. Especially good indicators.

But coding by Mladen & Mrtools from Forex-TSD and FS has opened my eyes. Especially non-repainting versions of repainters like the TDI made me realize some indicators are just not as good as they really seem.
📖 Download over 600+ Forex & Trading books from Forex-Station's Trader's Library.


Attachments 5
  1. Similar Topics

    1. Trading system (TS) 4 indicators

      10 Replies 5722 Views

      by Antonio, Sun Sep 29, 2019 6:14 pm in Trading Systems

      10 Replies
      5722 Views
    2. 41 Replies
      8623 Views

Return to “Trading Systems”