Does anybody use the common indicators in their algo?

Discussion in 'Automated Trading' started by kmgilroy89, Dec 9, 2012.

  1. Does anybody use indicators like Momentum, RSI, ADX, Stochastic, Bollinger Bands, MACD, etc?

    I'm new to algotrading and wonder if it would be worth it to try and use these in developing my strategy. My plan is to trade intraday with 5 minute charts with hundreds symbols or at least a double digit amount of symbols. I want to make at least a few cents per share after slippage and commission. No overnight holding. I'm using Trade Station and Easy Language.
     
  2. there is no correlation between complexity of the underlying models and performance of algorithm. As said by Mandelbrot, "The only criteria of trustworthiness is replicability in time".

    hope that helps,
    -Sun Light
     
  3. And I might add: over time, nothing has changed in the manner of how markets operate.

    the deductive proof is this:

    when you have a complete and full descriptor of how markets operate (this is the definition of a system); it works all of the time and is, by definition, a solution that is using finite maths.

    If a person uses averages; sooner or later he will recognize that the answers he is getting do not fit into the possible answers as determined by the market's(system) possible values. This is a big clue for those who participate in intellectual pursuits.

    The market has no noise, no anomalies and no flaws.

    For what the OP wants to do, there is no requirement to invent a new strategy to use the tools he mentioned. He will do better than he expects.
     
  4. jb514

    jb514



    Charts are for people. A computer doesn't need to visualize data
     
  5. The indicators use time, ticks, price, or volume. I was just referring to the bars I might base these indicators off of in order to trade intraday. No, it doesn't visualize a chart, but it uses much of the same data that makes a chart.
     
  6. Charts are for people...."who program the computers."
    A computer doesn't need to visualize data...."but people need to visualise in order to program."

    So the point being, in order to program one needs to visualise. Once programmed, then charts no longer required as computer takes over, just number crunching.
     
  7. lindq

    lindq

    I use daily bars for trading intraday. There is no standard or best practice. It all depends on what works for you.
     
  8. all the ones you mention are used
     
  9. kut2k2

    kut2k2

    I use momentum.
     
  10. jb514

    jb514

    I don't use anything resembling a chart, but I do pay attention to the clock sometimes
     
    #10     Feb 1, 2013