Are Indicators Killing Your Trading Edge? - page 2

[Enrique Dangeroux]

Ryan L Johnson #:
Trading on bar close is actually really beneficial for accurate statistical testing and reporting. It eliminates need to analyze all of the ticks within the current bar.

This introduces a (1 candle) lag, of which the topic starter insinuates is present in indicators but absent in price action. 

[Ryan L Johnson]

Enrique Dangeroux #:
This introduces a (1 candle) lag, of which the topic starter insinuates is present in indicators but absent in price action. 

I understand what you mean now.

This is the problem with starting such a generalized Topic. It begs the question of what constitutes an indicator.

To expand upon my previous post:

• Non-recalculating/non-repainting indicators are usually deemed to lag--but they improve accuracy in testing in MT5 (this can be done visually/manually in chart history... or in an EA in the MT5 Tester).
• Recalculating/repainting indicators are usually deemed to lead--but they must be called by an EA for MT5 Tester purposes... or manually replay-tested, in order to accurately test and report (visual/manually examined history is not accurate).

Another thing that I've noticed is that the coding ability (based on user Profile) of a given trader tends to influence her/his opinion of technical analysis. On one end of the spectrum, a non-coder tends to speak in generalities. On the other end of the spectrum, a full stack developer tends to speak in black and white detail. (I'm somewhere in the middle).

[rachid el jaafari]

Alexandr Saprykin #:
Those who have inside information

exactly , trading without indicators only works if you have an informational edge , or an inside informations , and as we can see for everyone else, indicators are essential for managing risk and surviving the market.

[Ryan L Johnson]

rachid el jaafari #:
exactly , trading without indicators only works if you have an informational edge , or an inside informations , and as we can see for everyone else, indicators are essential for managing risk and surviving the market.

Please describe an example of an informational edge that can't be quantified in an indicator.

Note that trading based on insider information may be illegal. For example, in the U.S.:

"Insider trading is illegal when the material information has not been made public and has been traded on... It is seen as an unfair manipulation of the free market to give an advantage to certain parties. Ultimately, it undermines confidence in the integrity of the market and can dampen economic growth."

I seriously doubt that any user in this Forum has access to, or is trading, inside information.

[Arinze Michael Ejike]

Lots of US politicians do that. But mostly stocks, they get the stocks before awarding contracts to the companies. Some have their portfolios online.

[rachid el jaafari]

Ryan L Johnson #:

Please describe an example of an informational edge that can't be quantified in an indicator.

Note that trading based on insider information may be illegal. For example, in the U.S.:

"Insider trading is illegal when the material information has not been made public and has been traded on... It is seen as an unfair manipulation of the free market to give an advantage to certain parties. Ultimately, it undermines confidence in the integrity of the market and can dampen economic growth."

I seriously doubt that any user in this Forum has access to, or is trading, inside information.

Let' take as example the  real-time knowledge of a large institutional order about to hit the market....

So , here if you know who is buying or selling, how big the order is, and when it will be executed (for example from a broker desk, fund flow, or internal communication), you don’t need RSI, MACD, or any indicator.

Usely the price  will move because of that information, not because a formula says s,that edge is contextual, human, and timing-based  once price reacts, indicators only show it after the fact !!

[Ryan L Johnson]

Arinze Michael Ejike #:
Lots of US politicians do that. But mostly stocks, they get the stocks before awarding contracts to the companies. Some have their portfolios online.

I wouldn't say "Lots". Maybe a few because the ones who do that end up in prison. The overwhelming majority of conniving politicians are smart enough use an intermediary such as a fund manager for purposes of plausible deniability.

As I've never heard of a politician using this Forum, I guess that everyone here is using indicators. 😅

[Ryan L Johnson]

rachid el jaafari #:

Let' take as example the  real-time knowledge of a large institutional order about to hit the market....

So , here if you know who is buying or selling, how big the order is, and when it will be executed (for example from a broker desk, fund flow, or internal communication), you don’t need RSI, MACD, or any indicator.

Usely the price  will move because of that information, not because a formula says s,that edge is contextual, human, and timing-based  once price reacts, indicators only show it after the fact !!

Got it. That is basically the same thing that Arinze Michael Ejike said.

Again, I've never heard of any such person using this Forum so I guess everyone here is using indicators. 😂

[rachid el jaafari]

Ryan L Johnson #:

Got it. That is basically the same thing that Arinze Michael Ejike said.

Again, I've never heard of any such person using this Forum so I guess everyone here is using indicators. 😂

Personally, I prefer developing and programming EAs based on probability and controlled risk (almost like gambling applied to trading), rather than relying on indicators that only repeat themselves or try too hard to project the past into the future with no real edge.

let’s be honest, no one is going to hand you RSI or MACD settings that unlock a “golden mine.” If someone truly had the keys to the future, they wouldn’t be sharing them with us.

[Ryan L Johnson]

rachid el jaafari #:
[A]lmost like gambling applied to trading...

Ooh, like a Blackjack EA. 😅😂🤣

rachid el jaafari #:
If someone truly had the keys to the future, they wouldn’t be sharing them with us.

It's like you know. 🔮

I don't share my best EA for several reasons.