Stochastic indicator. A curious observation. - page 4
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There it is - asymmetry! AND ALL OF THIS I HAVE SAID IS CONFIRMED BY THE GRAPH ON THE PREVIOUS PAGE. PAGE. Where the width of the envelope suspended on the stochastic is different in the upper and lower positions of the indicator!
As far as I remember, 2005 - 2007 for the pound is going upward. Therefore, no matter how you slice it, but the total amount of points up, exceeds the total amount of points down. And in case of a constant TP, the larger amount of orders fits into the larger amount of rise.
We suppose that it will be the same since 2002. Try the period from 1998 to 2002. The question is what will happen. If the number of short trades will be higher, that will be the reason. If not, we'll keep thinking.
//In other words, the stochastic starts its upward and downward movement with different accelerations. Upwards - slowly and gradually speeding up. Downwards - very quickly and gradually slowing down
This may very well be a characteristic of all markets or human psychology.
//The Expert Advisor works based on ticks.
I see. With the first bar, we open after the accurate signal. At zero we will change our mind. Perhaps we can overcome the problem by trading on smaller timeframes,
Where there are more bars, looking at indicators on higher timeframes.
but abandoned it... either because of uselessness... or because of young trader's hurry to get results... but the signals were good.... Later (much later), on the same metastock I tried to do the same thing... and the result was worse signals... If you want to be sure of the correct trading strategy, check this ... i don't know if it's based on indicators or not ... i don't think so ... i think the market changes ... and any intraday (and not just intraday) trading system needs to adapt to changes, be it manual or automatic ... Stochastic or something else is not important when you build a system based on indicators.
I think the most important indicator (in my opinion) is the price.
I'm sorry if I've gone off topic...
//and any intraday (and not only intraday) trading system needs to be adjusted for changes.
Alternatively, a good system should be profitable on different timeframes and different instruments - that is in different market phases.
PS:My current IMHO.
I may be old and stupid... but back in Metastock I was building an EA that gave signals on the clock coming from Stochastic and RSI crossing in critical zones... and by going through different periods and overbought/oversold values... drew beautiful arrows... traded for a while...
but abandoned it... either because of uselessness... or because of young trader's hurry to get results... but the signals were good.... Later (much later), on the same metastock I tried to do the same thing... and the result was worse signals... If you want to be sure of the correct trading strategy, check this ... i don't know if it's based on indicators or not ... i don't think so ... i think the market changes ... and any intraday (and not just intraday) trading system needs to be adapted to these changes, be it manual or automatic ... Stochastic or something else is not important when you create a system based on indicators.
I think the most important indicator (in my opinion) is the price.
I'm sorry if I've gone off topic...
Price is a lot of noise. That's why working with price only has its disadvantages.
But this is my personal opinion based on personal experience.
The main thing is not to get overloaded.
It is absolutely symmetrical both for BUY and SELL!!!
Just look at his formula.
Yes, it does not behave identically at the beginning of the movement and in its end (but this is its characteristic). BUT this applies to both rise and fall.
You just need to take into account that the chart is drawn by BID, respectively, the calculation of ALL indicators is carried out by BID. For SELL-positions, just use actual indicator values (when making decisions), and for BUY-positions, add SPRED to the price. That's all. And they have already invented some asymmetric stochastics.
Simca,
How do you think you can interpret the widening of the ENVELOPES channel hanging from the stochastic at the top? And its narrowing in its lower part? An Expert Advisor working according to this scheme after optimization (or without it) gives :
profitable buy trades up to 75%
profitable trades in sell - barely up to 55% (at best)
Practically for any currency pair and timeframe. Trend - not trend....