Hi all, I think it is a good place to share a part of my research about indicators trading on EUR/USD. I decided to check, which indicator/s have higher probability of success in building automatic strategy. So I made 1000 simulations for each indicator. The chart, below, show us profitability of each indicator in test.
Methodology of research:
Default settings for 21 indicators
data test 2006.01.01 2020.12.31
Initial capital $10000
lot size 0.1
time frame H1
SL-TP: 30-300
Type order: pending order
direction: long
As you can see, some indicators are better than others. Don’t waste time to build a strategy from indicator which have low success probability. Find the own way to make research and save time. Regards Greg
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Wow the babypips school is right! I think they did their test too and wrote about the “best indicator” which was also Ichimoku!
The Ichimoku is the backbone of my profitable strategy. However, as it works best in a trending market, I need patience and discipline for trading opportunities.
Thanks for that, very useful. I use parabolicSAR with a 0.09-0.50 setting which works well, lagging at most by one 1m candle. Also I use MACD with a 3-10-16 setting which gives a quicker entry point.
Each financial instrument could be different behavior on different time frames, that is why, making research is important. BP research is a good start.
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Each indicator could be profitable on different market conditions, that is why I am planing to make deeper research like use trailing stop and time exit.
For sure. Good to see you had the same results though!
Hi all, I decided to update research and include crisis time, so new data test is between 2006.01.01 - 2022.09.30, the results are below.
Hi all, today I want to present research for short direction.
Methodology of research:
Default settings for 21 indicators
data test 2006.01.01 - 2022.09.30
Initial capital $10000
lot size 0.1
time frame H1
SL-TP: 30-300
Type order: pending stop order
direction: short
All pending orders and transactions are close in friday.
