We proudly use lagging indicators to trade here at No Nonsense Forex.
Dumb people cannot understand why.
So let’s explain it to them.
Episode 46’s question is from another withheld name
“Why do you still think it’s a good idea to use indicators that LAG in your algorithm?”
— Name Withheld, United Kingdom
This should be a pretty short blog post.
What We Do Here
We are trend traders here at No Nonsense Forex.
Therefore, we want to use indicators that enter us into a trend, but only when it officially becomes a trend.
How the heck do you do that?
There is no exact science, but you do your best.
You find a group of trend indicators, test the crap out of them, put them together, then test more until you find a combination which gets you into an official trend at the best price possible.
These indicators need time to do what they do.
And once they do that, we follow.
Stay In School, Kids
I get snide comments on YouTube every now and then from people who want to say I’m not good at what I do because I use….(cue spooky music)….LAGGING INDICATORS!!!
I mean, if an indicators lags for chrissakes, what good is it??
“I want to use LEADING INDICATORS because they can predict the future, and I like to wear my lack of education on my sleeve for all to see!!”
If you did what I said on the main page of the website, and went to Babypips to learn how to trade Forex, you would laugh at these half-wits every time.
They actually cover both types of indicators really well here, corny as they can be sometimes.
If you don’t want to click the links, just know what Leading Indicators are for reversals, lagging indicators are for trends.
Because most people are lazy and stupid, they fall in love with titles like we discussed last week, and don’t bother doing a base minimum of research.
I mean, if you were going to broadcast your opinion on the internet, on a very popular Forex trading channel, you would at least want to know the meaning of the word you’re arguing, right?
“As you can see, this was not a good album because even Michael put the word ‘bad’ on it”
Lagging Indicators FTW!
If makes you wonder too, if these indicators “lagged”, and lagging was so bad, why do people keep making them?
“GAH! I just created ANOTHER lagging indicator!! 14th time in a row! How does this keep happening?”
Sorry, I just can’t get over the proud stupidity of the people who make this argument.
Lagging indicators can actually teach us about life, if you drill down to a ridiculous level like I’m about to.
When something occurs, don’t react right away. Sit back, let things materialize, let your emotions calm down, and THEN make your decision. If you have the time, this is always the favored way to go.
These lagging trend indicators are beautiful in how they allow themselves to collect more data and instead of being completely reactionary, they wait until they are more certain about the direction of a currency pair before telling us to go.
Find a really good one. Combine them with other really good ones. Hundreds of NNFX followers are doing this every single day, and many are achieving fantastic results.
Results that are exponentially harder to do with leading indicators.
Stop falling for titles and words. If you don’t know what something means, look it up. Then test these things out so your opinion can actually mean something.
Conclusion
These indicators lag on purpose, and that’s exactly what we want them to do.
If you are anywhere else outside of the No Nonsense Forex biosphere, and you see somebody make this stupid argument once again of how they’re inferior because they “lag”, leave wherever you are before it’s too late.
And ask yourself why you ever left here in the first place.
— VP