Indicators will never give reliable robots
Indicators will never give reliable robots
20 Nov 2013, 19:37
I built sort of an experiment by entering trades at a complete random moment and direction (long or short that is), with fixed SL and TP end all the same live cycle 1 bar. With the spread and commission set to NILL, it loses as much as it wins as statistically should. So here the mathematical average works fine.
So, the thought was: if we add some basic indicator based rules when NOT to trade and skip the random trades that contradict with these rules, results should be better.
But as soon as we added intelligence from anyone of the many indicators and highly recomended strategies, it starts losing money. Why? I think because indicators always calculate old facts, they can't asume new facts. And while following old facts you're always steps behind.
Folks: if you want to make a working robot, stop using indicators and start using the behaviour that's hidden in the last 5 to 20 candles.
Replies
Cerunnos
21 Nov 2013, 11:00
Many successful traders work with price action. They are looking for engulfing bars, pin bars, big belts, inside bar combos etc. But trading without indicators only works if support & resistance zones are used. And these zones have just made in the past :-) To use S & R zones in robots is likely to be quite difficult. Therefore, many prefer to use indicators ...
@Cerunnos
breakermind
25 Nov 2013, 16:20
RE:
Hi,
simple methods are the best !!!
Look how much you earned without using robots just by looking at the Chart D1 beginning of each of the first month on the low or high up on the first day to buy or sell down holding the position until the end of the month?
It more than 200 pips and it is 100% per month (often it is only the first week without guessing and poring just waiting)
Regards
@breakermind
Kate
20 Nov 2013, 23:23
5 to 20 candles on one timeframe are hundreds candles on another timeframe :)
@Kate