[candlesticks] Indicator Forex Strategie

[samuel23 10]

Indicator Forex Strategies are such trading strategies that are based on the standard Forex chart indicators and can be used by anyone who has an access to some charting software (e.g. MetaTrader platform). These Forex strategies are recommended to traders that prefer technical analysis indicators over everything else:

 

Moving Average Cross Strategy

 

Parabolic SAR Strategy

 

Stochastic Oscillator Strategy

 

MACD Divergence Forex Strategy

 

Combined Stochastic Oscillator/MA Strategy

[mohsinqureshii 10]

Indicator Forex Strategies are such trading strategies that are based on the standard Forex chart indicators and can be used by anyone who has an access to some charting software (e.g. MetaTrader platform). These Forex strategies are recommended to traders that prefer technical analysis indicators over everything else:

 

Moving Average Cross Strategy

 

Parabolic SAR Strategy

 

Stochastic Oscillator Strategy

 

MACD Divergence Forex Strategy

 

Combined Stochastic Oscillator/MA Strategy

 

Do you have grip on all these Technical Indicators ?

[samuel23 10]

No sorry, i do not have grip about these stategies. However, i have myself learn it from my reading about forex and i wanted to share it here as maybe there will be some interested who can elaborate more about the Indicator Forex Stategies.:missy: I have make some researches about necessary tools that can enhance our trade. I have tried some of the tips and advices about Forex and this is quite helping me at the moment. I will welcome if there is other interested to join in this Thread and start sharing their knowledge so that we can be able to learn more about forex and use it in our daily trade. Hope to see more comments in the near future. Thanks

[Mysticforex 13]

Indicator Forex Strategies are such trading strategies that are based on the standard Forex chart indicators and can be used by anyone who has an access to some charting software (e.g. MetaTrader platform). These Forex strategies are recommended to traders that prefer technical analysis indicators over everything else:

 

Moving Average Cross Strategy

 

Parabolic SAR Strategy

 

Stochastic Oscillator Strategy

 

MACD Divergence Forex Strategy

 

Combined Stochastic Oscillator/MA Strategy

 

 

Hi Samuel23,

 

Just speaking for myself I don't give any weight to an MA cross. I do have MAs on my chart but they are there more to give me a visual representation of what's happening on the chart.

 

I don't have enough experience with Parabolic SAR to comment.

 

I do like MACD Divergence. This is how I look at it. Notice the 2 trend lines. The one on price is making a lower low. The one on the MACD is making a higher low. Then view the result.

As with any indicator or method YOU must test it to see if it suits you, and it is producing the results you are looking for.

[JMB 10]

Hi Samuel,

 

I personally do not trade with any indicator. I might on smaller timeframes look at a Bollinger Band as it moves faster to see if it has confluence at the level i'm looking to take.

Many traders are not very succesful at this game and yet many traders are using the same indicators. If you want to have a real look at how to use indicators in a better way (so you can have an edge,...or bigger edge over other traders) you might want to consider Constance Brown's book "Technical analysis for the trading proffesional" . It will give you a better understanding on the WHY you should use but more so HOW to use them. Oscillators do not always move between 0 to 100. You'll be surprised.

 

Good trading to all.

[Obsidian 10]

when you inspect-learn trading strategies, study their behavior as well...

moving average crossover for example would generate too many false signals when the market is flat, so you may want to integrate it with ATR (average true range) or a similar indicator...

if you master the tools you are using, you will pick the right ones when you need...

[samuel23 10]

Great to have such good advice here guys, i have read your post and seems really interesting. I will therefore apply it and see the outcome in my trade. I just want to thank you as you given good and precise information about your way of trading and also some disadvantages regarding Indicator. I will try to follow your instructions and see how it goes. if ever you have anything else to add or share, please do so as i will surely update my Threads as soon as i see more infos and new thing concerning forex. It can be of great help for us and other as for the moment i am happy to learn what you have share with me. Thanks again

[BlueHorseshoe 10]

Hi Samuel23,

 

Just speaking for myself I don't give any weight to an MA cross. I do have MAs on my chart but they are there more to give me a visual representation of what's happening on the chart.

 

 

Like you, I only use an MA for trend confirmation and not for entry signals.

 

Rather than a cross of two MAs, or a cross of price and an MA, I would encourage people to try looking at the directional slope of the MA. By this I mean whether the MA value is higher or lower than it was one period ago. I have always found this to be more robust both when testing strategies and in real trading.

 

Hope that's helpful,

 

BlueHorseshoe

[Mysticforex 13]

Like you, I only use an MA for trend confirmation and not for entry signals.

 

Rather than a cross of two MAs, or a cross of price and an MA, I would encourage people to try looking at the directional slope of the MA. By this I mean whether the MA value is higher or lower than it was one period ago. I have always found this to be more robust both when testing strategies and in real trading.

 

Hope that's helpful,

 

BlueHorseshoe

 

Certainly sounds worth looking into.

[BlueHorseshoe 10]

Certainly sounds worth looking into.

 

The results are never dramatically better with what I'm suggesting, just consistently slightly better across dozens of strategies and markets that I have tested. Also, using a single MA in this way means only one variable (MA length). It could be argued (and I would be very interested to hear anybody else's thoughts on this) that using a price MA cross involves two variables, where price is simply a 1 period MA, and might therefore be curve-fit across a data set. That might seem a perverse and even slightly paranoid way of understanding things, however . . .

 

Anyway, as I said, it's always worth investigating.

 

BlueHorseshoe

[onesmith 10]

Counting price as sma1 is brilliant! but constraining vars to reduce curve fitting, like most well known edges, causes more harm than good. Curve fitting must be eliminated. Not reduced. Will you ever stop looking at test results? and thinking in terms of performance reports? Take a year off. Become an expert at some type of handicraft. It will better prepare you to write strats with viable tactics than any amount of time spent backtesting.

[BlueHorseshoe 10]

Counting price as sma1 is brilliant! but constraining vars to reduce curve fitting, like most well known edges, causes more harm than good. Curve fitting must be eliminated. Not reduced. Will you ever stop looking at test results? and thinking in terms of performance reports? Take a year off. Become an expert at some type of handicraft. It will better prepare you to write strats with viable tactics than any amount of time spent backtesting.

 

Unfortunately, unless a system contains zero data inputs, then the elimination of the possibility of curve fitting is impossible.

 

Can you explain to me how I could even begin to distinguish a bad strategy from a good strategy without either back testing, or forward testing? Ultimately a strategy's viability must be measured against the ruler that is the market, whether historically in sim, or in live trading with real money. There's no escaping that, I'm afraid . . .

 

I always welcome advice Onesmith, so if you'd like to provide some that is neither cryptically obtuse nor dismissively facetious, then I would love to hear it.

 

BlueHorseshoe

[NW27 10]

Ok, sounds good so far.

Build a system using the 1sma or was that ema. ;-)

What price was being used for the sma, (h+l+c)/3 ???

 

Sent from my GT-I9100T using Tapatalk 2

[onesmith 10]

BHs, fitting to non-recurring features of price is eliminated by targeting recurring features, not by constraining efforts to fit recurring features. Value is determined by the existence of tactical and logical advantages. This is analogous to knowing which recurring feature of price was targeted. I hope you point me toward stronger truth rather than pointing out my obvious semantic and logic breaches, or suggesting I can gain something by being less cryptic.

[BlueHorseshoe 10]

BHs, fitting to non-recurring features of price is eliminated by targeting recurring features, not by constraining efforts to fit recurring features. Value is determined by the existence of tactical and logical advantages. This is analogous to knowing which recurring feature of price was targeted. I hope you point me toward stronger truth rather than pointing out my obvious semantic and logic breaches, or suggesting I can gain something by being less cryptic.

 

Thanks for your reply.

 

Targeting recurring features is difficult. This is because (except on a tick-by-tick basis) the data we have to work with is essentially continuous rather than discrete. If it were a simple binary bet - will tomorrow's close be higher or lower - then it would be easy. But recurring patterns often require the recognition of connectedness between countless data points. The logical bounding of any recurring pattern is ill-defined, and yet algorithms can only deal with the specific. At what point does the recurring feature cease to be such?

 

Here is a quote from Wittgenstein that better explains this:

 

“A rope is made of a huge number of fibres, but not a single fibre goes through the ropes entire length, it’s the way they overlap that creates the strength.”

 

How do you teach an algorithm to recognise family semblances in patterns of market data?

 

I wasn't suggesting that you could gain something by being less cryptic, I was suggesting that I could gain something by you being less cryptic.

 

BlueHorseshoe

[onesmith 10]

I didn't say pattern. I can broaden recurring features to recurring themes and recurring logic. I understand those descriptions include the concept of patterns and I'm not being difficult just clarifying a slight difference. Primarily because I do not have enough knowledge of things you mention to understand them or your intent or the direction I would need to follow to exploit them. Given this distinction where I place less emphasis on patterns and more on recurring concepts, can you elaborate on the subjects you mentioned or take a different approach if that changed anything from your perspective?

 

The repetition I'm referring to never ceases. Code that exploits it is vulnerable to error and being tricked by data that coincidentally mimics a recurring feature but wasn't caused by algorithms like the authentic cases. Writing code that captures the recurring aspects of authentic themes, concepts and logic is done in small steps without concern for whether it improves strategy results. I don't mean to repeat but not sure it's been said this way .. fine tuning the results of a strategy that doesn't have a logical advantage or edge as it's basis .. is essentially fitting to non-recurring features of the data. This can be eliminated by not considering improving the results as adding to or more importantly creating the edge that must be there before giving any thought to fine tuning the results.

 

The strategy results do not matter and are likely to still be unprofitable when it's time to look at them for the first time and begin fine tuning the results. At that time, with a thorough understanding of the edge, it's necessary to rewrite the previous attempts at implementing something to exploit the concept, without ever having looked at the test results. It's near impossible to find a profitable edge in it's raw state and near impossible to learn things about an edge while focusing on fitting (data) to a small aspect of an edge. This is backwards and simply more fitting of nothing to the non recurring features of the data.

[BlueHorseshoe 10]

I didn't say pattern. I can broaden recurring features to recurring themes and recurring logic. I understand those descriptions include the concept of patterns and I'm not being difficult just clarifying a slight difference. Primarily because I do not have enough knowledge of things you mention to understand them or your intent or the direction I would need to follow to exploit them. Given this distinction where I place less emphasis on patterns and more on recurring concepts, can you elaborate on the subjects you mentioned or take a different approach if that changed anything from your perspective?

 

The repetition I'm referring to never ceases. Code that exploits it is vulnerable to error and being tricked by data that coincidentally mimics a recurring feature but wasn't caused by algorithms like the authentic cases. Writing code that captures the recurring aspects of authentic themes, concepts and logic is done in small steps without concern for whether it improves strategy results. I don't mean to repeat but not sure it's been said this way .. fine tuning the results of a strategy that doesn't have a logical advantage or edge as it's basis .. is essentially fitting to non-recurring features of the data. This can be eliminated by not considering improving the results as adding to or more importantly creating the edge that must be there before giving any thought to fine tuning the results.

 

The strategy results do not matter and are likely to still be unprofitable when it's time to look at them for the first time and begin fine tuning the results. At that time, with a thorough understanding of the edge, it's necessary to rewrite the previous attempts at implementing something to exploit the concept, without ever having looked at the test results. It's near impossible to find a profitable edge in it's raw state and near impossible to learn things about an edge while focusing on fitting (data) to a small aspect of an edge. This is backwards and simply more fitting of nothing to the non recurring features of the data.

 

I need time to think about this more carefully before I can give a worthwhile response.

 

BlueHorseshoe

[andysteven 10]

As per your post i can say that i am not such a professional technical analysis but recently i have found one video on you tube which is showing simple forex trading strategy without usin indicator:

[samuel23 10]

Nice to share these video andy, seems really good. I guess that we can trade well without indicators. It good you put that here so that we can learn from it and it can help others as well. If you have any other suggestions or ideas like this, you can share it here and we can all benefit from them.:haha:

[onesmith 10]

I need time to think about this more carefully before I can give a worthwhile response.

 

Edges are plentiful on the smallest scale where they preference doing something one way instead of another way. Viable strats include significant edges independent of the sum of these smaller advantages.

 

imagine abstract truth that solves many of the markets riddles.

 

significant edge = known truth;

 

formulate understanding of se in a way "that must" result in significant edge.

 

guarantee by the mathematical certainty built into the formula that it must achieve the goal of exploiting that se.

[samuel23 10]

Edges are plentiful on the smallest scale where they preference doing something one way instead of another way. Viable strats include significant edges independent of the sum of these smaller advantages.

 

imagine abstract truth that solves many of the markets riddles.

 

significant edge = known truth;

 

formulate understanding of se in a way "that must" result in significant edge.

 

guarantee by the mathematical certainty built into the formula that it must achieve the goal of exploiting that se.

 

Hi OneSmith, am sorry to say but i was quite confused with your post. You might have share something really useful but it complicated to understand what you stated in here. Can you please elaborate more or give some more simple examples. Thanks