thanks for your reply .. you are completely right.. i was searching for a system which if followed blindly could have given good results in past. ... but as u said human interference is always required. but I would like to share with u something.. if u see any chart daily or intraday etc.. and if u hold only one technical parameter like for example rsi of 14 days.. whenever it has gone below 30 market has always bounced back. so what i actually wanted and test was to find the back testing results of only such a single parameter.. that was the basic idea.. if it works on daily charts.. it should work on intraday also...
I am glad that you understand why such a simple strategy wouldn't work.
But I am afraid you got me wrong, on the need to human intervention. What I am saying is "A great discretionary trader" could trade even poor looking strategies (on computer results) and make profit, but that is not the point of discussion.
yes completely automatic strategies can be build and traded profitably but my point is you will have to do more research and work (kind of
gold hunt, if you will) to find profitable strategy and then you will have to work towards making a strategy out of it. (MM, Risk Mangement, Stops, Scaling, etc)
and if u hold only one technical parameter like for example rsi of 14 days.. whenever it has gone below 30 market has always bounced back
Yes visually it looks as if the RSI or any other oscillating indicators always bounce back or fall back, but do keep in mind that these are oscillators designed to swivle b/n 0 to 100
(or some other values ), but only because RSI has moved from say 20 to 50 doesn't mean that the price has also moved (either in same magnitude or different). Money comes from trading price and not RSI, alas !!!
Please don't take this as a wrong way but regarding your understanding of Indicators I believe is
not evidence based (
only visual based) so I honestly urge you to read
Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals - Aronson .
(pun certainly not intentional)
You should decide what you want to be discretionary trader or system trader ? because the road to each of them are different and unless you are a workaholic and voracious reader , I am afraid, you will have to choose either one of them.
Also if you are serious please read all the books which I had shared in earlier post. If you need pdf version of any of those and don't find it on the net, do PM me.
Like in Sports or business or any profession for that matter,
Success is the result of hardwork,
lots and lots of hardwork. I hope I haven't disheartened you or discouraged you. But reality should be told, there is no Holy Grail.
P.S:
All the so called "secrets of success" will not work unless YOU DO !