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How many indicators are on your charts?

  #71 (permalink)

Arnhem, The Netherlands
Trading Experience: Intermediate
Platform: NinjaTrader, Zorro
Broker/Data: RCG/Continuum, IB, Oanda
Favorite Futures: Futures: FDAX, GC, ES, CL also: FX, CFD, ETF
rlstreet's Avatar
Posts: 26 since Aug 2012
Thanks: 28 given, 22 received

Studies (Paul Slovic / Bernard Corrigan) have been done to check if more information leads to better decision making. The outcome of the study: the more information, no worse/better decisions/forecasts. But a boosted confidence by decision makers when more info available. This study was done in the field of horseracing.

If you apply these insights to trading then you could argue that the more cluttered the screens the more insecure the trader. I use 5 indicators, probably 2 entry, 2 exit and 1 for SR. My goal is to have 3 indicators as I trade on a very short timeframe. But to simplify is not that simple. When I drop a indicator I have the feeling that it would negatively influence my performance. Although I rationally know you can do without a couple.

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