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Your comment:
The core problem for traders is that they believe some indicators to be
better
than others. This is not true because an indicator is [only] a
measurement
of some [of the] specific characteristics of the underlying data series
(raw data).
The misleading point is in the way [we] use them. [M]ost of us fail
because
the rules given with the indicators are too simple to encompass the
market
complexity.
is the truest statement I have yet seen regarding market systems. I am
going to put it on the wall to remind me to not look for the holy grail
indicator, but keep working on the overall system concept. That is,
first break up the complexity of the market into its many identifiable
phases (for exapmle, expansion-contraction, trending-choppy, etc.). Then
find the simplest (least curve-fit) entry-exit indicator which will
properly handle each phase. Finally, determine the optimal position size
for each entry.
I want to thank you for shining a light on the path we should be taking
and reminding us we face a task no less daunting than NOAA has in
predicting the weather.
-- Gabe Hanover
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