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gurujohn

Best of the Worst

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I realize all TA indicators lag and I'm willing to accept that. I trade the ES.

 

I am looking for the best indicator for TradeStation, that will give me the highest probability of capturing 1 point from the trigger of the indicator. I know there are many indicators posted and written about on TL (let alone TS), but I look to the members here to drill down and give me the best of the worst, so to speak. Please include the eld download for TradeStation if you can.

 

Thanks to all and may you have great success!

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If you are just starting to learn, the best advice is to forget the indicators and learn to read charts from scratch. It is a hard road, but far more rewarding financially in the long run. If you get into a bad habit now of trying to use an indicator "crutch" it will lead to frustration and failure quickly.

 

Try looking around the forum to see what best suits you.

There is a nice Candlestick group/thread

or

Volume Spread Analysis as well

 

or other methods that assist you in learning to read the bars and what they tell you- far better than trying to take the lagging indicator route.

Sledge

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It'd be so nice wouldn't it - find an indicator that you can program that just cranks out 1 pt a trade like no tomorrow.

 

;)

 

You have a choice here:

1) Keep searching for this and spend a great deal of time and money

 

2) Spend that same time learning how to trade for yourself

 

Your money, your time, your decision.

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FWIW

 

I got rid of all of my "indicators" and just trade price and volume, trend, support and resistance. I was all tied up into moving averages for some time but after spending alot of time on this forum, reading material I got about the subject and applying it in real time I don't think I will go back to a squiggly. I am still learning, but since getting rid of all that stuff I have made more progress than ever.

 

Good luck,

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Any tips on defining support and resistance?

I paper trade the YM and use 2 tactics.

 

1) I do a weekly chart up with S&R based on the waves/cycles and what seem to be stumbling blocks, then put those into intraday charts to use as key levels.

 

2) I run the big gaps on intraday and bracket the levels just outside the gap that appear to have the most action.

 

I know some use WRB etc... I'm just gathering ideas since I too am dumping all but 1 indicator and getting in touch with the basics.

 

I'm very interested in what you guys have to say. :)

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I personally have no problems with indicators. However, you need to know what information you are looking to get out of one. Sit down and look at a chart on different time frames. Study the patterns you see, and learn how to read the story. After this has been completed and you understand what is going on, then you can think about using indicators to increase the speed and efficiency of mining data you have a specific purpose for. In my opinion you shouldn't have to look any further than some of you standard indicators such as a stoch or sma. Also, the concept of "lagging" doesn't really bother me for an experienced trader. I think some traders get caught up on using that as an attack against indicators. Just like anything, if used improperly you will get bad results. They key is to take account of multiple time frames and understand the different levels of possible support/resistance and supply/demand surrounding price at any given time.

 

Now a more direct answer to your question. If you are looking for pure momentum plays to squeak out a point or so (not taking into account RR) many traders just use standard indicators. Most will have at least one oscillator be it a Stoch or MACD. They will also usually have a few SMAs or EMAs up to take trades off of or to trade tight crosses. Of course I do not condone this type of trading without first knowing how to read the market. My main point is that I believe there is no overall "best" indicator out there. The closest you will get is the handful that everyone uses and talks about. When using indicators you shouldn't have to go any further than what's already in your platform.

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And to piggyback on what Hlm said, if you do use indicator(s), make sure to find ones that are dis-similar in what they are representing to you. In other words, you do not want or need to almost identical oscillators. Bollinger on Bollinger Bands talks about that in his book actually.

 

I realize, like hlm, that most consider indicators to be voo-doo or lagging, or whatever you want to call it, but they can be an aid to a trader looking for that one little vote of confidence.

The biggest concern you have to have when using any indicator is what does it look like when it fails (usually trend day or range day) and how will you shut it down when this happens.

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I wish there was something like that available. I would have used it along time ago on my search for great indicators. Now I use a few different indicators from time to time, and it changes depending on what market I'm using and the time frame. The simple reason I use them is to help confirm what I am looking at on a chart. I won't sell because I see an "overbought" (btw I hate that word) signal, nor will I buy on an "oversold" indicator. Instead, I will look for a signal to enter a trade WITHOUT the indicator, and the indicator is simply there to say, "James, once again you have proved to be a badass."

 

When you do decide to work with indicators - when you are past the holy grail stage - I suggest going over to http://www.stockcharts.com and playing around with what they have available. Use the MACD, stochastic, RSI, whatever and find one that fits your trading style and personality. You may walk away thinking you don't need one, and that's absolutely fine. But don't count on them doing you any favors ;)

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Well said gsx.

 

In addition to using stockcharts.com, you can get a monthly platform from OpenECry. There is a trial period after which there is a small monthly fee for the platform AND data.

 

Or just sign up again after the trial period for another account, as needed.

 

Customers of OEC can get this fee waived; if you ask nicely, I hear. :hmmmm:

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Or just sign up again after the trial period for another account, as needed.

 

Customers of OEC can get this fee waived; if you ask nicely, I hear. :hmmmm:

 

Big surprise, I mention OEC and here comes FS.

 

Yes, you can try to beat the system and create multiple accounts.

 

And yes, if you trade size (aka no piker accounts) you just might be able to get that sim account for free.

 

No surprise here, but FS has no idea what I am talking about. ;)

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No surprise here, but FS has no idea what I am talking about. ;)

 

Whatever you say, Brownie . . .:puke:

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Whatever you say, Brownie

 

Like I said, piker accounts need not apply for a free sim account.

 

rotfl.gif

 

I don't know why you want to keep bringing this up FS, but you seem to enjoy the fact that I point out time and time again that you must obviously be trading a whole $5,000 dollars in your account and can't qualify for a free sim account.

 

But hell, if you want to keep bringing it up, I'll be more than happy to point out what a piker you are.

 

laughing025.gif

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I appreciate your replies, but none are specific. Can't anyone, among all the Market Scientists here, post an eld for an indicator that has a high probability of capturing one ES point?

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I appreciate your replies, but none are specific. Can't anyone, among all the Market Scientists here, post an eld for an indicator that has a high probability of capturing one ES point?

 

Your use of "market scientists" as a jab seems to indicate to me you might just be trolling. :\ I'll play along for another round and we'll see where this goes.

 

You could enter at random and if your stops as well as your mind are conditioned right you could maybe catch a point quite often. There is no magic potion, the grail is in your mind and you just need to find what works for you. :)

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:\ There is a thread on this board with a bunch of eld's already there...

 

What more do you want?????

 

It's pretty clear to me we probably have a troll on our hands, what they want is what their parents didn't give them...ATTENTION! :o

 

I mean if you can't find .eld's on this site you really didn't try at all. :crap:

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I appreciate your replies, but none are specific. Can't anyone, among all the Market Scientists here, post an eld for an indicator that has a high probability of capturing one ES point?

 

Maybe Brownie can steer you in the right direction!

 

:crap:

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A random entry has a high probability of catching one point as long as you are prepared to risk enough to get it - a 20 point stop should make it a pretty high probability. If you are prepared to do a bit of data mining you could hone in on an entry that has statistical significance. Certain stuff has a tendency to happen at certain times. Stuff happens at previous days highs lows closes mid points. Its not hard to come up with a reasonably robust strategy to catch a point while only risking a similar amount. The first suggestions was the easy option.

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Not an eld but psuedo code

 

if time = 10:00am and last tick = up enter long else enter short.

if long and last = entry price + 1 close

if short and last = entry price - 1 close.

 

>>>>Insert stop logic here but realise that anything you put in will alter your very close to but not quite 100% expected wins.

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