What are the best parameters to use for the full stochastic indicator
- Thread starter John_IL
- Start date
Quote from hoodooman:
I use one minute chart and white out the first line and use only the second one(7) but you need more than that one indicator to trade successfully.
I agree, I myself use 20 indicators and when they all fire up at the same time I would think oh boy here goes im taking the trade. But so far i'm only successful 30% of the time what do you think maybe i need 20 more?
this is called "curve fitting."
Yes. Test a number of different value for the instruments you are looking for over a LONG period of time (think multiple years, not just the last few months). Look for values where the neighboring values are also high, for robustness. (I am talking about charting the different values and seeing how they all appear on the same chart).
But depending on values from anonymous posters is not a way to trade successfully. How do you know they have any clue what they are talking about? You need to take charge of your own testing. You can ask for ideas, but you must do validity testing. Few traders know what they are doing, so you are most likely to get ideas from the ones who do not.
Further, past validity in no way guarantees they will work in the future. It would be wise to walk forward test a few promising values for at LEAST a few weeks.
Personally, I think stochastics is a questionable way to trade forex, which are very efficient markets. Throwing a couple of (cherry-pick-valued) technical indicators at it does not seem very useful.
I hope you have a more robust underlying trading edge...