Accuracy of indicators by timeframe - Psychology and Money Management | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Psychology and Money Management

Accuracy of indicators by timeframe
Started:August 23rd, 2012 (12:49 PM) by RM99 Views / Replies:683 / 1
Last Reply:August 23rd, 2012 (12:49 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Accuracy of indicators by timeframe

Old August 23rd, 2012, 12:49 PM   #1 (permalink)
Fortitudo et Honor
Austin, TX
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: Futures
Posts: 882 since Mar 2011
Thanks: 128 given, 700 received

Accuracy of indicators by timeframe

One of the webinars on (formerly BMT) featured a gentlemen who made a statement I thought was pretty profound and I've searched but cannot find any "public" information on the subject.

He basically stated that the accuracy of an indicator reduces exponentially as you reduce the timeframe.

On the surface, it seems to make sense as the closer to the tick level you zoom, the market becomes more and more randomized from any given point.

I've done my own studies on randomization and I can prove statistically, that as you approch the tick/tick level, the likelihood that the market will move x ticks in either direction becomes essentially randomized. At any given single and exclusive point in a liquid market, the chance that price will move 10 ticks down before it will 10 ticks up is essentially 50% when examining large sample sizes.

As you move further out in timeframe, the market(s) begin to reveal more structure. The same is true as you begin to move further out with the movement variable (x in my example).

I have not done any research however on whether or not typical (or atypical) indicators are more or less accurate depending on the timeframe.

If anyone has any leads on where I might find similar information or studies or how we might confirm/deny this notion, it would be helpful.


"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
Reply With Quote

Old August 23rd, 2012, 12:49 PM   #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


Reply > Futures Trading, News, Charts and Platforms > Psychology and Money Management > Accuracy of indicators by timeframe

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trendlines not matching from Higher Timeframe to lower Timeframe? bluemele NinjaTrader 26 October 8th, 2012 02:35 PM
Comparing accuracy of sim trading on different platforms vs live trading Titian Traders Hideout 3 March 27th, 2012 12:32 AM
197% accuracy? shodson Traders Hideout 12 October 7th, 2010 02:13 PM
Historical Data and Strategies Accuracy nillz123 NinjaTrader Programming 4 September 20th, 2010 01:09 PM
sensitivity multi-timeframe trick (small timeframe on bigger one) SARdynamite NinjaTrader Programming 4 July 15th, 2010 02:57 PM

All times are GMT -4. The time now is 05:20 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-27 in 0.07 seconds with 19 queries on phoenix via your IP