The best developed programs come at a price. If you don’t want to throw money down the drain, then it is worth figuring out which programs are worth your attention.
Growing Market of Indicators
The choice of an indicator becomes more difficult every day as their number constantly grows. But why?
- This is a lucrative industry. Indicators, expert advisors, trading strategies, and all kinds of scripts can cost quite a lot of money. This makes their production very profitable.
- Indicators don't last. The market situation is constantly changing. Some shifts are so tangible that changes in the program settings will not be enough. You’ll have to purchase a new, more relevant indicator.
- The demand constantly grows. The popularity of Forex in general and the use of all kinds of assistants are constantly growing. Demand creates supply.
Which indicators are best to avoid
Please note that this article is not a call to action. It’s advice that you can use or not. I will name a number of indicators that are best avoided in trading. It is up to you whether to accept my advice or not.
1. Lots of Losing Trades
Before purchasing an indicator, study it carefully. The seller will assure you that you have stumbled upon the holy grail. But we all know that this doesn’t happen in Forex.
During the presentation, the developer usually demonstrates a number of profitable trades. Losing trades and risks are only mentioned briefly. Your task is to recognize in the provided screenshots and data those “holes” that the indicator doesn’t work out. In the future, these flaws can end up in huge losses.
If you notice the frequent triggering of trades by stop loss and closing at a loss, then such an indicator should definitely be bypassed.
2. Lack of Settings
Most indicators include a variety of settings. If a developer offers you a program where the only settings are a color change, the product should be discarded. As a rule, such indicators are just a mirror of an unknown robot that transmits signals to your charts.
What are the risks? The market often changes its sentiment. An experienced trader must adapt to them and react to these changes in a timely manner. This includes editing the settings of your programs and strategies. If the settings cannot be changed, then the next spike in market volatility might cost you your capital.
Conclusion
That's all for today but not all on this topic. In the next article, I will tell you about three more types of indicators that can bring more problems than good. Stay tuned and good luck in trading.