Indicator Parameter optimization

[gkintl]

Most beginners dwell themselves in trying various indicators. After some time, they lose interest and try to find out a better one. It must be noted that no indicator is perfect. All indicators send out errors. It is the ability to reduce error signals that enable a trader to remain successful. For this parameter optimization is very much required. We have to change input parameters of the indicator and try it out on the demo account. The parameter that gives us the lowest error should be used. Still, another indicator would be required to filter out errors completely. This is a process followed by all professionals.

 

[jackcm]

This is not really important but necessary. In fact, adjust those parameters (periods) is to test so as to make sure whether that indicators worked in the past. The fine example is moving average, after testing SMA-21 days, if we see it fail to gauge resistance (support) or explain the movement in prices, then we can use DMA-SSMA-EMA/25-30-50-100-200 days till it gives us satisfying result.

 

[Pettyeve]

The newbie traders will not even be able to know that there is a way they will be adjusting the indicators to work better for them. What they try to do is to be trying the various indicators to see the one they can use easily. Indicator optimization is important but this thing is not common among the newbie traders.

 

[Lee Mark]

Trading indicators are useful, no doubt about it! But, it’s not enough for trading with a good result! If you want to make here a decent trading result, then definitely you have to learn technical and fundamental trading with the details.

 

[anna.semera]

thank you sir for your information and assistance.

 

[Tom Latham]

thank you sir for your information and assistance.

Hi Anna; I hope you are using default trading indicators in your trading. May I know your default trading list? If you don’t mind actually.

 

[Svetlana Loboda]

Most beginners dwell themselves in trying various indicators. After some time, they lose interest and try to find out a better one. It must be noted that no indicator is perfect. All indicators send out errors. It is the ability to reduce error signals that enable a trader to remain successful. For this parameter optimization is very much required. We have to change input parameters of the indicator and try it out on the demo account. The parameter that gives us the lowest error should be used. Still, another indicator would be required to filter out errors completely. This is a process followed by all professionals.

Till now Moving Average is my number one choice and on my trading chart I would like to use EMA20 & SMA 200. But I don’t rely on MA; Price Action is my major.

 

[Gito Dinev]

Technical Indicators are as important as fundamental to trade for Intraday. As technical gives you time frame and also best entry and exit compare to fundamental.

 

[Mark Dahl]

Most of the indicators are defined from the price with different permutations and combinations.

 

[Eduardo Lucchese]

If you have an exciting mind, Forex trading will be difficult for you. You have to make sure any loss doesn’t weaken you.

 

[Oscar Shumack]

You can also take geopolitical condition under your consideration as part of fundamental analysis because it helps.

 

[Alexander Hudson]

Newbies have a bunch of questions in their mind. Newbies can’t derive profit from the market moderately just because they don’t have sufficient knowledge.

 

[David Marco]

A regulated trading broker can allow traders with a bunch of trading facilities.