Indicator Parameters

Discussion in 'Strategy Building' started by jptrader62, Jun 1, 2004.

  1. Hi Everyone, I have a question about indicator parameters and testing systems. I started using the default parameters on my indicators and I would watch how the stocks react and how the indicators give me my signal. What I'm trying to acomplish is to reinforce my odds to put on the trade as all the indicators give me my signal sequentially. Now I know that if you tweak the indicators parameters, you will recieve the signal earlier. I'm testing this out on a 5 minute time frame and I'm testing these settings on all time frames ( 15, 60, daily). Now, to the question, If I change the parameters on my indicators to line up with the other signals am I weaking the signal as If I stayed with the default? I use moving averages and I know they are a lagging indicator and this is my last indicator to signal and put on the trade, does anyone have any experiance with this type of situation because I could use some help. I am looking at hundreds of charts daily and I see some signals work best with certain situations and some dont but thats to be expected in this crazy trading environment.
  2. agrau


    On which side of your screen do you detect the crazyness? I mean, you could either try to change a gazzilion of parameters, or just one. More seriously, do a search on "curve fitting" and you'll find more answers than you have questions on this subject.