Trading Strategies and Indicators: Why is there so much non-working advice on the Internet?
Posted: Wed Dec 11, 2024 6:25 am
The trading expert of the Contentim editorial team shares checklists that will help you check your trading strategy and indicators.
One of the main types of content on trading projects is technical indicators and trading strategies. It seems that even an author without trading expertise can write such an article . The Internet is full of descriptions of MACD, RSI, Stochastic Oscillator and other indicators. It is also easy to find trading strategies: a Google search for Effective trading strategies will give a huge number of them. But why do these strategies not work, and the indicators give wrong signals? Let's figure it out.
Content
How to check indicator parameters
General information about the indicator can, indeed, be written even by a copywriter without expertise. It is difficult to make a mistake in who and when invented the indicator, what it looks like and what signals it gives. This is basic information that is correct in any source.
The main problem arises when the copywriter has to describe georgia phone number library the indicator parameters. In most cases, the standard settings only work on certain timeframes. Of course, the author of the article should not try to select the indicator parameters himself, but it is important to be able to check whether they work.
Checklist: How to check the parameters of a technical indicator
To check the effectiveness of the indicator parameters, you need to:
Open the timeframe specified in the source.
Add the indicator to the chart and set the required parameters.
Since the author of the article does not have time to wait for the signal to work, past price movements can be used.
If the price moved in the direction indicated by the indicator, then the parameters are indeed working and should be indicated in the article.
To be sure of the effectiveness of the parameters, it is worth finding at least 2 working signals.
How to test a trading strategy
The situation with trading strategies is much more complicated. A trading strategy is a set of conditions that must be met to open a trade. Professional trading strategies contain specific levels for entering the market, closing a position, and Stop Loss levels.
It is more difficult to check a trading strategy. The strategy ha
One of the main types of content on trading projects is technical indicators and trading strategies. It seems that even an author without trading expertise can write such an article . The Internet is full of descriptions of MACD, RSI, Stochastic Oscillator and other indicators. It is also easy to find trading strategies: a Google search for Effective trading strategies will give a huge number of them. But why do these strategies not work, and the indicators give wrong signals? Let's figure it out.
Content
How to check indicator parameters
General information about the indicator can, indeed, be written even by a copywriter without expertise. It is difficult to make a mistake in who and when invented the indicator, what it looks like and what signals it gives. This is basic information that is correct in any source.
The main problem arises when the copywriter has to describe georgia phone number library the indicator parameters. In most cases, the standard settings only work on certain timeframes. Of course, the author of the article should not try to select the indicator parameters himself, but it is important to be able to check whether they work.
Checklist: How to check the parameters of a technical indicator
To check the effectiveness of the indicator parameters, you need to:
Open the timeframe specified in the source.
Add the indicator to the chart and set the required parameters.
Since the author of the article does not have time to wait for the signal to work, past price movements can be used.
If the price moved in the direction indicated by the indicator, then the parameters are indeed working and should be indicated in the article.
To be sure of the effectiveness of the parameters, it is worth finding at least 2 working signals.
How to test a trading strategy
The situation with trading strategies is much more complicated. A trading strategy is a set of conditions that must be met to open a trade. Professional trading strategies contain specific levels for entering the market, closing a position, and Stop Loss levels.
It is more difficult to check a trading strategy. The strategy ha