Pro + indicator + 15min = profitable strategy?

Beginner Questions
1

Hello fellows,

I saw guy saying that he can take any indicator, test it for some mins, and make a profitable strategy from looking at historical results. So I would like to ask, is it really possible to do so with any indicator?

He also said that “Ussualy things that were working for 24 years, stops on 25 year”

So, what do you think about it?

Thank you,
Albinas :slight_smile:

2

Hi Albinas
I am sure that I to could take any indicator and make a historical super strategy. historical data does not mean that it will work in the future, hind sight is 20/20. it is also true that the markets evlve and any set in stone strategy will eventualy stop working. This sounds like a poor attempt at marketing to me
best regards
Dave

3

Hmm, so it would look like all you do is take the indicator, test it, and put proper money management with it, thats all?

Thank you,
Albinas :slight_smile:

4

Don’t believe anything you hear until you’ve proven it.

5

What I am saying is that you can take an indicator and write a set of rules that prove true based on hind sight.

6

There a commercial product on the market that uses genetic algorithms that can take a bunch of time series data and spit out optimised parameter settings. Id advise anyone who wants to do this not to part with the $60,000 that the software costs, but to buy the GA engine its based on a for a few hundred :smiley:

What new traders probably need to understand is that the trade entry is only one part of the method, and unless their strategy is using very tight stops, not even a particularly important part.

7

What that guy is doing is called curve fitting and is absolutely useless.

Things that worked for 24 years will continue working year 25 also if they’re based on solid principles such as supply and demand.

Pretty shiny indicator cluttered systems will no doubt go down the drains as soon as you start trading them.

8

What you can do is use any indicator as an entry trigger.

Calculate average true range for the time frame of the pair you are trading and devise an exit strategy.

Based on the chart the average true range of the gbpusd is over 30 pips most of the time on H1. If when the entry trigger gives a signal the current range is 15 pips then you have from 0 - 15 pips or more of possible gain.

If there is a “trick” it is keeping your stop loss a constant.

9

OMG, I am really surprised guys, didn’t expected so much help, even a chart picture! Thank you for you time, Dave, Cadarkitek, simbafx, o990l6mh, xtraction :wink:

I think I should even test this by myself, haven’t tryed that :slight_smile:

Thank you,
Albinas :slight_smile:

10

i can take any indicator, delete it from MT4 in less than a minute and still make profitable trades looking at real time data :stuck_out_tongue:

hehe beat that :slight_smile:

11

Share your method and perhaps we can. I dare you! :stuck_out_tongue:

12

Hmm, even with MA’s and things like Bolinger bands deleted? :slight_smile:

Thank you,
Albinas :slight_smile:

13

Who need 'em? Not me :wink:

14

exactly my point :slight_smile:

15

Pretty strange, because I was thinking of it. Thinking if it would be possible to open a chart (I like 4 hour) and make trades only by making trendlines, S/R levels, searching for brakeouts and patterns.

But is that called a strategy? I mean if you do so there probably not be so many hard rules as many strategies have.

Thank you,
Albinas :slight_smile:

16

it is called price action trading and is mostly discretionary but it takes time to become proficient at, something that will come with screen time and experience :slight_smile: