Hey all,

In the spirit of understanding to those that love their indicators, and my willingness to try anything, this week I will be spending my spare time trying to develop a system based on indicators. That's right, despite my feeling that most indicators are a waste of time, I will endeavour to build a system, that I will then detail and post for you all. Here are the rules I will set out for myself when trying this:

1. Only use the few indicators I consider to have merit
2. Look for innovative ways to use these indicators rather than their standard use
   
3. Define a set list of rules to trade these indicators
4. If necessary, re-code several indicators into one to make it simple (I was a programmer in a former life)
5. No use of MACD, RSI, Stochs etc are allowed as I know they give just as many false signals as correct ones
   
6. Back-test this system over the past 3 months data over the four major pairs
7. Release the system for all to see (yes for free of course), if it is profitable in back-testing

So why am I bothering? Well firstly, because I am in a transition week at the moment, while I re-organise some of my trading funds, so I have a little time on my hands. Also I want to show to myself whether an indicator based trading system can work, as while I have been reasonable successful since going live without indicators, the time it takes to research and monitor these trades is a little time consuming for me with a new bub in the house. Lastly, I am about to train two new-comers to the forex market, and if there is a defined system I can get them started on, then that will make things all the more easier.

So watch this space, if you want notification of when this system is released, you can subscribe to this site by entering your email address in the right hand column. I will be sure to let you all know regurlarly how it is going.

Happy trading!

This entry was posted on Monday, December 12, 2005 at 11:50:00 AM. You can skip to the end and leave a response.