"truth About Indicators" - page 3
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well, his crap indicator is a part of my system and it has made me 992 dollars in the last 24hrs on demo testing so who am i to believe other than my positive statement. still needs some work but that good for three .1 lot trades i think!
there are a lot of scammers. my friend who has traded professionally before and will be again here in a couple of weeks told me to stay away from most of these boards and forums. you guys are right in saying the real traders don't hardly ever post because they're most likely too busy making money trading, or at least that's how it goes 98% of the time i just found some cool indicators for free and made a trade system out of about 2 of the 100 o found them and it's good so far.
I hate to burst your bubble, but if you live in the UK at least, you'll find that MANY medicines prescribed by your GP will be being prescribed precisely because the GP gets the best referral fee from the pharmacutical companies selling that productIndeed, many GP's believe that they are acting ethically in doing so as in general the referall fee benefits them personally, and it generally benefits the practice too.Now back to indicators. Correct me if Im wrong, but I believe you are referring to this silly probability meter marketed by FerruFX ?I agree that the pump and dump attempts are pretty amaturish, but surely noone is fooled by these for a moment, we all see them for what they are, nothing more and nothing less.The guy's pretty honest about the indicator, its a strength meter which is completely useless due to a very major design flaw that's obvious to most moderately intellegent 9 year olds, it also measures differential between the base and quote pairs, again the same basic design flaw renders this useless, and it monitors MACD and Stochastics, and displays em in pretty colors, and combines the signal from these variously flawed components to give an equally flawed overall probability.If I told you I was selling magic beans that would grow you a beanstalk which would allow you to enter a magic land where you'd be able to steal a goose than laid golden eggs from a giant would you believe me ?, would you buy the magic beans ? (If so theyre available for sale at www.ImAGullibleMoron.COM)Well then why the hell you you expect to identify trend from 2 fundementally flawed currency strength concepts and a couple of standard indicators. You dont need that crap to tell you what the market was doing 30 minutes ago, just look at a bleedin chart, its either going up or down !As for the video, he really must regret the day he made that, just take a look at it, I know its speeded up, and its hard to follow but just watch how this puppy lags, and check out the number of false signals. Anyone who actually watched that video wouldnt touch this thing with a bargepole !Now lets get to the crunch. Although I certainly dont endorse this indicator, the guy who made it posts his stuff for free on various forums, he's pretty open about what he's doing, and he contributes to the open source development forums, he's more of an assett than a liability, he does more good than harm. Now some of the people reading those forums are a bit thick, they arent capable of taking whats being offered for free and improving them, so its only fair that these people pay if they wish to take part in evaluating these ideas. They have a choice, do some feckin work, get their coding skills sharpened up, and contribute, or sit on their lazy fat arses and pay a few bucks in the hope that they get a holy grail indicator. I know which I'd do given the choice. The guy quite openly states that his indicator is simply a utility that he feels could benefit those with existing systems. So either you can incorporate this thing into your system and it helps confirm a trade, or it doesnt. Now if your trading a trend trading strategy, and your too thick to see that price is either going up or down, then I guess having a little box that lights up red or gree might just be of some help, similarly having a little box that lights up to tell you stochastics have crossed might be of some help, personally, Id just stick a stochastic on the charts, its hardly rocket science to check if it crosses is it ?So this guy had a signal from his system was confirmed by the probability meter, and he lost money, so whats the problem ?. Presumably he'll keep trading until such point he can determine if his system is fundementally crap, and if thats the case, the probability meter would have been of no help at all, or he determines that his system is sound, but the probability meter is actually diminishing his edge. Then at least he'll have gained some knowledge from his investment in time and money in evaluating this tool, he can use it, or bin it (or even fade it)its just a tool, you dont have to buy it
What's the reason you say that about him?
In this thread I will talk about why indicators should not be used to base trades on. I will discuss the reasons that they are not a reliable trading tool. I tried every indicator out there. When I threw them all out the window and focused on price action, that is when my trading turned around. I now get over 10% per month consistently, and I have done so for the last 4 months. Trading systems based on indicators alone is how con artists extract money from wannabe traders. This is not an opinion, it is a fact. Believe it or learn it the hard way like I did. This is not to say that indicators have no value. They are wonderful for quickly summarizing what has happened in the past. I use MA's just for that purpose. But all my entries and exits are based soley on price action tempered by fundamentals. I'd also like to add that elliot waves are one of the biggest jokes (or slaps in the face, depends on your preference) to ever be brought into technical analysis.I have not yet been able to identify a clear cycle in any type of instrument i tested, currency, stock etc. this can be easily assessed by calculating and plotting a power spectrum via either fourier transforms, wavelets or other methods.i pretty much get almost flat power spectrum graphs for anything i tested, which means no clearly indentifiable cycle. of course, this would require some DSP knowledge, something which i have to assume most traders don't have, otherwise there wouldn't be so much fuss about technical indicators which are mostly digital filters of different sorts that many either don't know how to use properly, or that are completely worthless to begin with and not worth bothering with. I really wish people would stop being lazy and instead of either choosing to blindly fall into the trap of a skilled conference presenter or continue to whine about how an indicator does not "work", they'd start studying some real science, like math, statistics and apply that to trading.
Just wanted to add my two cents.
Certain combinations of indicators truly outperform the market. I have coded myself several daytrading systems that outperform the market and actually shoud be making money.
BUT
When you add the market spread, or even the tiny interbank spread, it did not only take out all my profit but all caused losses.
I am telling you that because this proves that you are wrong in a certain sense; the indicators can truly give you a comptetitive edge on day trading, but only a very small one, OR a good edge if at any moment there is no market spread (which is possible sometimes if you deal for your own forex broker).
Now that being said, I have nothing about you method and trading naked charts, I even think that it is even better to do that and analyse fundamentals while swing trading instead of blindly overanalysing a set of indicators.
I am speaking only about day tading here, not weekly or monthly trades.
Happy to see you are making money consistently.
always the same questions !!!
++++++++ who was first: birds or eggs ??? +++++++++
What's the reason you say that about him?
In simple terms because its a fact.
Alternatively, a number of prolific open source contributors dont really provide anything of real value, or contribute anything remotely original, they tend to rename or reformat existing indicators and utilities, and as such they're a menace to society
They have hidden agenda of posting renamed rehashed indicators,one to impress new readers,secondly to promote their signatures for programming work from message boards. bloody scammers!
And of course lets not forget the "donations"
I do not agree.
Most indicators are in fact lagging, like the MACD or Moving Averages. However, many indicators can provide leading signals: Stochastic, Bollinger, CCI. It all depends on how you interpret them. Start by learning how each indicator is constructed, and you will know how to interpret indicators in the right way. Example:
Take the CCI for example. Most traders interpret it as an overbought\oversold indicator, like they are told to. But if you read and understand its interpretation, you will understand that this interpretation makes you enter trades when price is simply AWAY from its MOVING AVERAGE. This is not a trading signal.
However, if you wait for CCI to touch and bounce off its zero-line (Woodies CCI Zero-Line-Reject), and then take a trade, you are taking a much wiser signal. Bounce of a zero-line indicates that price has BOUNCED OFF A MOVING AVERAGE, and this is a trading signal.
So basically, its all up to you. If you are a lazy trader which does not take the time to learn and backtest his strategies, you could lose even if you trade with trend lines and not necessarily with indicators.
Agreed 100%
I agree with you. 90% of indicators are not useful and produce lagging signals.. but leading indicators can really improve your trading. Leading indicators are the Bollinger, RSI, and some more.