This is how to backtest an indicator based on the No Nonsense Forex method of trading. This post is a response to all of the questions coming in on how to properly backtest all of the new indicators that listeners of the Forex Q&A Podcast have been discovering.
The Heikin Ashi indicator is the “Easy Button” of Forex trading. If you’re smart, this should be a red flag. It would be great if we could use it and win with it. Can we still do that?
Forex Twitter loves to point out round numbers on currency pairs and label them things like “Psychological Levels” and “Big Figure”. Don’t fall for this.
At over 74,000 Google searches a month, the MACD is one of the most popular indicators in the world. Too bad nobody uses it the right way.
Trend indicators are easy to find. A good one is not. There are ways to narrow down the search however to find those diamonds in the rough.
The RSI looked so easy when you first saw it. It worked so well every time somebody else used it. Then what happened when YOU went on to use it? Did you get the same results? There are many reasons why you did not.
Everybody wants to know. As a guy who has tested thousands of Forex indicators, on all different time frames, on so many different settings, on every currency pair combination of the 8 majors…. Which one is the best? How you react to my answer, especially after you’ve read the whole blog post, will […]