chart interval
- Thread starter Avatar123
- Start date
I second that. I tested all the common ones when I first started and even today I'll test some of the less common ones.Please spend a few months and test them all or test as many you like.
You'll most like trust your own backtest results.
What works for some don't work for others. I could profit from RSI and MACD, never could make Stochastics work for me but I know a chap who won a trading competition using just that.
Indicators work best on longer time frame. The longer the better. At least a day. However that is not to say that they are not functioning well on a shorter interval. They will require some tweaking though.
As others have mentioned, Test. Do your homework. Pick 1-2 indicators. Go back 1 year and start building your spreadsheets. When you are done, just do basic statistical calculation of how much of the trades have been profitable, and how much were not.
And don't just run through the chart. Take your time as if you are doing the trade in this moment. Take into account ALL of your indicators that you would normally use. Write them as well.
This can take you a couple of days, or even months (if 1 or 5 minute candles) to do right. But after that you should have a pretty good idea if what you're doing is profitable.
Cheers
As others have mentioned, Test. Do your homework. Pick 1-2 indicators. Go back 1 year and start building your spreadsheets. When you are done, just do basic statistical calculation of how much of the trades have been profitable, and how much were not.
And don't just run through the chart. Take your time as if you are doing the trade in this moment. Take into account ALL of your indicators that you would normally use. Write them as well.
This can take you a couple of days, or even months (if 1 or 5 minute candles) to do right. But after that you should have a pretty good idea if what you're doing is profitable.
Cheers
