malincho99
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Hi, i am wonder how to test different indicators for profit?:?:
How to test indicator?
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meanreversion
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You'll need to build your own models. Try signing up to ProRealTime and use the programming wizard to build some basic trading systems. If you're not familiar with markets or programming, it will take you a while to get the hang of it, but it's a worthwhile exercise to enable you to backtest anything you like.
shadowninja
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To me that's a vague question. However, let's assume you have an idea for a trading strategy using an indicator.
Your first task would be back-testing: go back through historical data, looking for "set-ups" which suit the strategy you are thinking of using, and see how profitable each set-up is; you want to identify 100-200 cases but more is better as you would be identifying set-ups through different economic climates - what may have worked in the last 5 months may not have worked in the last week with the Greece problems.
The next task is forward-testing, so on a demo account, take trades when your set-up occurs and see how profitable each trade. Again, you want to be taking 100-200 trades but more is better.
Finally, forward-test with a live account risking small amounts for 100-200 trades. This introduces the psychological aspect of trading. You could skip stage 2 as many choose to but don't be tempted to risk normal sizes per trade after just back-testing as you will be in for a shock.
Your first task would be back-testing: go back through historical data, looking for "set-ups" which suit the strategy you are thinking of using, and see how profitable each set-up is; you want to identify 100-200 cases but more is better as you would be identifying set-ups through different economic climates - what may have worked in the last 5 months may not have worked in the last week with the Greece problems.
The next task is forward-testing, so on a demo account, take trades when your set-up occurs and see how profitable each trade. Again, you want to be taking 100-200 trades but more is better.
Finally, forward-test with a live account risking small amounts for 100-200 trades. This introduces the psychological aspect of trading. You could skip stage 2 as many choose to but don't be tempted to risk normal sizes per trade after just back-testing as you will be in for a shock.
God Of Pips
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I once had a chance to download a program over the net that allows us to test indicators and everything else u could possibly think off. U have to download the main program and then go to their website and download the historical data for a chosen currency pair. The layout is nearly the same as MT4. The cool thing about it is you can fast forward the movement so that you can get results much more quicker. That way you dont have to wait for results.
It has a 6 month trial period. You pay if you r happy with it. 6 months is more than enough to test your setups especially since you have the fast forward features. And the market movements are accurate historically.
And finally Happy Pipping
It has a 6 month trial period. You pay if you r happy with it. 6 months is more than enough to test your setups especially since you have the fast forward features. And the market movements are accurate historically.
And finally Happy Pipping
There is a (limited) range of indicators available for testing on actual charts at http://chartgame.com/
Beware, it's surprisingly addictive.
