Hi,

I got a very interesting question in my mind that will probably have very interesting results and I hope the discussion will help in inventing new methods for mechanical trading.

So the question is..

If you must trade so that you couldn't see price at all, just a selected bunch of indicators, what indicators would you use?

This means you will not see price at all (and moving averages under 10 or other indicators that will directly show you where the price is are not allowed), you will see volume and your selected indicators including trendlines (lets assume someone else would draw them for you according to your instructions) and zigzags but no price at all.

So what indicators would you pick?

I'll answer myself first

From the publicly available indicators I would use RSI to pick buy/sell positions and a few selected multi timeframe moving averages (about 20-50) to determine the trend.

I would pick the positions to enter trades from quite low timeframe charts (5 min&/15 min) based on MTF rsi values and not use a trailing stop at all. I would use a stop loss of about 100-300 points and dynamic take profit based on peaks of RSI calculated so that the average profit is larger than average loss.

I give credits to all those oscillators but never underestimate the power of statistical indicators( standart deviation, standar error,regression indicators,hurst exponent etc..)

The most powerfull indi is the price itself

Learn it and master it !

But your approach is interesting.

__________________
Picasso is the best !

I totally agree, Bollinger Bands is one of my facourites but it basically requires to see the price to be used effectively (well I have some of my own indicators that process it a bit differently but that's not the point of this discussion..)

I totally agree on this - My assumption is that the human brain adapts to the price and sees patterns there and because the price is common to all charts, this makes it a very important psychological factor on when people decide when to buy or sell and because [almost] all opponents on the market are humans the price movement interpreted by human is one of the most important issues.

If I trade myself price movement is probably the most important issue that I use - I also love bollinger bands as you could guess from my previous postings, when combined with price movement and some s/r they give you a nice psychological and statistical edge. If I had to pick one indicator and price it would definitely be BB.

This however is not the point of the question

What I'm trying to discuss here is actually the way the computer (your EA) sees the situation of the market. It can't see the price same way as humans do (unless you use gigantic neural network with more data than is usually available on just price but that's not the point here..)

Price?

What kind of knowledge that i can learn about price?Still not understand what do you mean "Price"

Search "price action" and "support/resistance" and "trendlines". Please create another thread for this discussion.

For me, it's Stochastic.

Wait for nice stoch movement then buy at pull back (see attached).

jackt

Attached Images

stoch.jpg (58.0 KB, 238 views)

too many..what the best setting do you use for stoch?

To Mikkom..for me i will choose Stoch or Osma.Stoch to see either price already overbought or oversell.Osma for me to look divergence and entry