This post is a response to all of the questions coming in on how to properly backtest all of the new indicators that listeners of the forex q a podcast have been discovering. This is how to backtest an indicator based on the no nonsense forex method of trading. Here too there are many.
The last type of indicator that a forex trader needs is something to help determine when to take a profit on a winning trade. A profit taking tool. If it goes above the 70 line we sell.
Below the 30 line we buy and. If the indicator goes. For example lets take a classic stochastic indicator.
Do you know how probable or accurate the indicators are that you use. I guess you use some forex technical indicators in your trading. An awesome list of the most popular forex technical indicators.
Furthermore all of the indicators led to substantial drawdowns of between 20 to 30. Surprisingly the rest of the technical indicators were a lot less profitable with the stochastic indicator showing a return of negative 20 72. Over 5 years that gives us an average of just over 6 per year.
It generated a total profit of 30 341 or 30 35. Every single forex indicator covered up until this point has been built exclusively for mt4 or mt5 but if you don t use. Currensys is an older indicator package that isn t discussed too frequently but because it s built to work with ninjatrader esignal and mcfx multichart platforms i felt it was important to included on this list.
Adl adx heiken ashi candles moving averages macd parabolic sar ppo atr bollinger bands bollinger bands width chaikin volatility.
List of forex indicators. Trend indicators show trends. Volatility indicators show magnitude of price fluctuations.
Volatility indicators show magnitude of price fluctuations. Trend indicators show trends.
