Is it safe to assume that the Indicator that works most accurately will be the one that most/max people use?
Or does it not work this way?
nothing is safe to assume unless it works in your setup. i mean, why bother if it works for others or not? it should work for you, and you should be profitable at the end of the day.
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No mine wasnât a question about any particular indicator⌠It was about the basics of technical analysis, general question about why an indicator (or trend line or support/resistance) works or doesnât workâŚ
Markets are nothing but how you interpret it. Itâs basically supply and demand.
All indicators work. All timeframes work. Everything works. The catch here is, it should gel well with the psyche of the human in question.
Markets Have a Rhythm = You Hear a Song in any indicator or timeframe? Thatâs money.
Na, everything definitely doesnât work else we can all just make random entries and make money. Nope. You are the 2nd person to post that in forum, i cant understand how someone believes this.
And once you have something that works well, psych issues become very overrated.
Once you have a process for this, have patience through drawdowns and keep risk in control - then its just finding things that work, different things, testing them live and scaling up. No psych issues here.
There is a lot of superstitious nonsense that gets called as TA and then there are other things in TA that might work. And if something works in a market/timeframe, it may not work in another. You have to test it ( any trading plan) over multiple years of data, no other way around that.
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You have to find your own ârandomâ entries. Donât get âFooled by Randomness.â 
You donât do this stuff in trading. Risk is always defined before entries.
No random entry will ever work in markets over large number of trades. Gross will tend towards 0 and expense and slippage will pile on top of it. I have tested many things that dont have edge and thats how they play out.
But yeah, you find what works and execute day in day out and hope system keeps working and keep risk in control even if it stops working.
?
1 trade has its defined risk.
Series of trades has its own risk and we get drawdowns in tough periods.
Anyway âŚ
Respected Sir. I have just started trading now maybe 1-2 days. I sincerely appreciate you giving me such plethora of knowledge. Now, I realize what a fool I was.
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Ignoring the sarcasm, will just add that if underlying itself has a bias then you can get that baseline return through random entries and maybe improve upon that via TM.
Baseline returns is not an edge but can be profitable - just as how buy and hold index works.
In same way i can have an edge in shorts over baseline, but if baseline is negative ( if shorts dont pay ), then it may not be economically feasible.
I do intraday stocks where you donât get that kind of baseline returns. So random entries do nothing.
In a strong bull market, most people start making money with positional/investing systems because almost everything is rising and so random entries can work for them.
Anyway, i am out.
Respected Sir. Thank you for baselining your valued knowledge. Your English writing skills are noteworthy and I hope it is the same case with your trading.
Sir, now I will also baseline everything. Thank you for taking time out and writing such jewel knowledge, which I understood nothing of. Hope you have a good day Respected Sir.
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I suppose @thisisbanerjee is a long-only discretionary trader. Times have been such that plenty of long-only swing traders have been able to literally make random entries (TA) and make money in this relentless bull-market
He apparently has been trading for 5+ years with MTF.
So has seen crash and survived even with leverage. Assuming true, likely has rules that work.
But i donât agree with his idea that everything works and its only psychology. Maybe it works for him, but this probably wont work for a newbie. 100% it doesnât work in intraday stocks/index futures. You need some sort of intrinsic returns for random entries to work given all other things being equal.
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You have got it right. Been that way since 2012. Although, nothing is random for me.
For eg. MACD might work in your strategy while it may not for others. RSI might work for others but not for you.
Indicators are only helpful in finding weight of evidence.
So for 100 different people, there are using 100 different indicators, which is actually random statistically.
But this respected sir only wants to preach and not listen, so I didnât bother to elaborate.
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Respected Sir. You are like the Chinese CCP. Your research skills are marvelous. You built my profile also from different posts.
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After your comments, I read a ârandomâ post and you happened to mention some of your history. See random works !
Anyway i am profitable, you are profitable. Newbies can make their own choices. Now i am out of this conversation.
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