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Why using indicators for trading, when it could be done even better without them?

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  • Why using indicators for trading, when it could be done even better without them?

    I am not that long into forex trading, but the one thing I know is that indicators are never able to show the future direction.

    And as we all know there is a lot of truth in the words "The Trend is your friend!"

    And we also know, that there is only one kind of order that DOES follow the trend - the "STOP ORDER!"

    Therefore why not opening two stop orders, a buy stop and a sell stop, placed a fixed value from the actual price using a fixed SL and a, of course, higher TP? (TP double or three times higher than SL)

    And as soon as one of the stop orders gets triggered and stopped out or hit TP, than opening the next couple of stop orders calculated from the new price!

    Couldn't this lead into trading success, using the help from an EA that only gives a hand to place the orders quicker than we are able to place them?

    What do you think?

  • #2
    All indicators are based on historical data, so they can simply not show the future price direction. And this is not the point either. What technical indicators does is to show a pattern that is an estimation of future prices. And using any indicators is better than not using any indicators, as long as this is understood. If technical indicators would be useless, then no one would use them, and nor would new ones be invented. So based on that, it must be true that it's better to use them than not to use them. So the question is instead how to use them, and which ones.

    Opening two pending stop orders around current price is not a strategy that will work - unless you combine it with something else. Because, even though one of them will be hit and turned into a market order, there's no guarantee that the price will continue in that direction. The price can simply turn in the opposite direction so that the order hits the StopLoss instead of the TakeProfit.
    For development of EA's, "educating" of existing EA's including removal of restrictions, adding features,
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    • #3

      Go to fxdreema and make this simple ea in 5 minutes, backtest it 99% and get back to us with results...


      • #4
        Thank you guys for your replies ;-)

        OK, registered at fxdreema, but I have no clue how to create an EA from my first post????


        • #5
          On tick tab
          Use blocks no trade order exists - buy po - sell po (on orange exits connection)

          Define constants for lot, sl, tp, offset pending order and add it to blocks.

          Additionaly you can add block If trade is running connected to trail sl block


          • #6
            OK tried to make an EA from it https://www.sendspace.com/file/otc29e

            But the EA does not close the left pending order, after the other gets triggered and hit SL/TP and does also not open two new ones.


            • #7


              Backtest it using tickstory data and mt4.


              • #8
                We say a very simple strategy

                We keep a certain distance of Open [0], a BUY_STOP and a SELL_STOP.
                For example, the minute this distance is 15 points, for other TF's, this distance increases, everyone's tastes and eye

                trying to test this strategy, the last 2-3 years, on any TF, and any pair, you will see fantastic profits of hundreds of millions

                I will only show the test results for the last 2 years, 1 minute chart, distance 15 points (4 digits) SL = 15 Points, Tral, 15.5,5.

                That's the whole strategy
                Attached Files


                • #9
                  I don't understand you..

                  On m1 tf you open for every candle buy and sell PO 15 pips away from candle open?? With trail if PO gets hit?


                  • #10
                    That's M1.
                    The idea is to catch "impulses" on the market, always waiting two stop orders to Open [0] bar to catch current position.
                    So always change orders stop at a certain distance to Open [0].
                    On every bar.


                    • #11
                      i can make this EA in 5 min but it won't be very profitable because of retracement..


                      • #12
                        here... please share your ea and i will test it for you



                        • #13
                          Still believe in the trend trading thing!

                          Thought about another example:

                          We have an account with $200 and smallest lotsize is 0.01 lots.
                          Opening only two stop orders a fixed value away from the actual price.

                          So lets say we have EURUSD with 1.13000 and use fixed value of 10 pips away from this price.
                          It does not matter whether we use ask or bid for our first stop orders.
                          Then we open a buy stop at 1.13100 and a sell stop at 1.12900 with 0.01 lots, the TP should be x% of the balance.

                          As soon as one of the stop orders get triggered e.g. the buy stop, we move the sell stop 10 pips away from the triggered buy order to 1.13000 and change the 0.01 lots into 0.02 lots.
                          And when the price moves against us and triggers the sell order we add another buy stop at the same price as the first buy stop at 1.13100 with 0.02 lots.
                          We always add a 0.02 lots two the very first order as soon as the other gets triggered, a.s.o. until we rechead our target of x% of the balance.

                          I know that there can always be a ranging market, but because we keep always the same prices for our stop orders, it is not like grid trading in the common way and we also do not trade against the trend with our stop orders. And sooner or later the price will move into our favor and we will be in the trend without any indicators.

                          We could also use a another lotsize strategy instead of 0.01, 0.02, 0.02, 0.02, 0.02, 0.02, 0.02, etc. like 0.01, 0.02, 0.03, 0.04, 0.05, 0.06, 0.07 etc.

                          Maybe someone could code a simple EA for that ;-)


                          • #14
                            This will not work because of lotsize increment. It is to small and in the range market it will never go to profits. I'v created ea simmiliar to this strategy and it was not profitable.


                            • #15
                              And when we use fibonacci like 0.01, 0.02, 0.03, 0.05, 0.08, etc.
                              Trading from UK open to US close