Yup like the title suggests, i`m going to test every major indicator in the MT4 platform, also you can submit custom ones (preferably those which give BUY/SELL signals and can be mechanical, not stuff like pivot points or like that).
Mission
I've build in the last 4 months a complex Artificial Inteligence which can trade upon indicators profitably, also it can check and compare the each indicator's validity.Now i`m not going to put my AI in public, nor any information how it made it,but i will use it to help you folks out who are using indicators for trading.Certain myths about indicators must vanish, some of you say indicator are BS and cant make constant profit with it, some of you say they are the Holy Grail, and can make immense profit.
I say, you can make money by trading them mechanically, but, you cannot use them statically, meaning that you cant use the same parameters like in the MACD 12,26,9 which were usen in 1970, the market changed much since then.
Method
My genetic algorithm, segments price into clusters randomly, and computes the best parameters to the cluster, then after new clusters/ data comes, it learns from those too, and tries to adapt to the best possible parameters, to the most fitting enviroment.
It is pretty inteligent at doing this.
So i will compare those indicators, by their formula not by their parameters, so dont ask me parameters/ settings of the indicators which are the best, because there is no such thing, in different conditions, different parameters are good,but i will tell you atleast the minimum parameters which must be used to be atleast breakeven, but you still must optimize the indicator after every trade or cluster of trades.
Its not like you can use MACD 12,26,9 in 2002 trending market with same succes as in 2010 ranging market.Thats nonsense.
But what i`m going to show is that although parameters can vary, certain indicators will still be overall better than others.
Because their formula, guesses the price flow more accurately, with any parameter, better than other indicators.
So i might make a top 10 list after we are done, but first lets just test them.
Also not that Drawdown and stuff like those are not measured, so it may be that certain indicators are more dangerous than others, but its usually not higher than 25%, if it is then that indicator has a very hart time predicting the price and will probably not be profitable anyway.
Criteria
Simple, 2 numbers are key here, i will measure each indicator, how much pips/pipettes can it acumulate in the last 12 years of time ,by opening a trade at each signal and closing it at opposite. No TP and SL will be used, so Drawdown is not measured!
Second , i will measure the accuracy rate, how accurately predicts price flow.
I will use the EUR/USD only, and M30 timeframe.I have 12 years of very accurate historical data on M30.
Also i chose M30 because i found out that you cant make money in the long term on TF's under 30 with these indicators,or atleast you would be very limited.None of the MT4 indicators can filter out noise under M30 efficiently.
Now it may be that certain indicators will perform better on USD/JPY or AUD/USD, especially the trend spotters.
But i think the EUR/USD is still a good benchmark, and since many people trade it, i will test it only here.Also if i were to test it in every pair that would take forever, and also it takes much computing power to do this, so EUR /USD only
1 other number will be the nr of trades, the sample size.
Why?
Why i do it ? Simple, its free, and i want to help you out guys who are still novices and have doubts about indicators.Also i dont spoil anything, i have way better indicators than the classical ones, but those who only have classical MT4 indicators, this is a great performance analysis of them
TOP 10 INDICATORS OF ALL TIME:
1) Parabolic SAR (PSAR)
2) Single Simple MA
3) Bullpower
4) Bearpower
5) Relative Vigor Index (RVI)
6) Simple MA Crosses
7) Ichimoku (Kijun/Tenkan cross)
8) Relative Stength Index (RSI)
9) Moving Average Convergence Divergence (MACD)
10) Money Flow Index (MFI)
Results on H4:
http://www.forexfactory.com/showthre...67#post7572267
Mission
I've build in the last 4 months a complex Artificial Inteligence which can trade upon indicators profitably, also it can check and compare the each indicator's validity.Now i`m not going to put my AI in public, nor any information how it made it,but i will use it to help you folks out who are using indicators for trading.Certain myths about indicators must vanish, some of you say indicator are BS and cant make constant profit with it, some of you say they are the Holy Grail, and can make immense profit.
I say, you can make money by trading them mechanically, but, you cannot use them statically, meaning that you cant use the same parameters like in the MACD 12,26,9 which were usen in 1970, the market changed much since then.
Method
My genetic algorithm, segments price into clusters randomly, and computes the best parameters to the cluster, then after new clusters/ data comes, it learns from those too, and tries to adapt to the best possible parameters, to the most fitting enviroment.
It is pretty inteligent at doing this.
So i will compare those indicators, by their formula not by their parameters, so dont ask me parameters/ settings of the indicators which are the best, because there is no such thing, in different conditions, different parameters are good,but i will tell you atleast the minimum parameters which must be used to be atleast breakeven, but you still must optimize the indicator after every trade or cluster of trades.
Its not like you can use MACD 12,26,9 in 2002 trending market with same succes as in 2010 ranging market.Thats nonsense.
But what i`m going to show is that although parameters can vary, certain indicators will still be overall better than others.
Because their formula, guesses the price flow more accurately, with any parameter, better than other indicators.
So i might make a top 10 list after we are done, but first lets just test them.
Also not that Drawdown and stuff like those are not measured, so it may be that certain indicators are more dangerous than others, but its usually not higher than 25%, if it is then that indicator has a very hart time predicting the price and will probably not be profitable anyway.
Criteria
Simple, 2 numbers are key here, i will measure each indicator, how much pips/pipettes can it acumulate in the last 12 years of time ,by opening a trade at each signal and closing it at opposite. No TP and SL will be used, so Drawdown is not measured!
Second , i will measure the accuracy rate, how accurately predicts price flow.
I will use the EUR/USD only, and M30 timeframe.I have 12 years of very accurate historical data on M30.
Also i chose M30 because i found out that you cant make money in the long term on TF's under 30 with these indicators,or atleast you would be very limited.None of the MT4 indicators can filter out noise under M30 efficiently.
Now it may be that certain indicators will perform better on USD/JPY or AUD/USD, especially the trend spotters.
But i think the EUR/USD is still a good benchmark, and since many people trade it, i will test it only here.Also if i were to test it in every pair that would take forever, and also it takes much computing power to do this, so EUR /USD only
1 other number will be the nr of trades, the sample size.
Why?
Why i do it ? Simple, its free, and i want to help you out guys who are still novices and have doubts about indicators.Also i dont spoil anything, i have way better indicators than the classical ones, but those who only have classical MT4 indicators, this is a great performance analysis of them
TOP 10 INDICATORS OF ALL TIME:
1) Parabolic SAR (PSAR)
2) Single Simple MA
3) Bullpower
4) Bearpower
5) Relative Vigor Index (RVI)
6) Simple MA Crosses
7) Ichimoku (Kijun/Tenkan cross)
8) Relative Stength Index (RSI)
9) Moving Average Convergence Divergence (MACD)
10) Money Flow Index (MFI)
Results on H4:
http://www.forexfactory.com/showthre...67#post7572267
"There's a sucker born every minute" - P.T. Barnum