Difference between EA and indicators
Thank you for your support, this is Neko Doctor.
This time, regarding the subject matter,
I would like to write a little about it.
I usually
develop EA (automatic trading programs).
Among the most popular products are
・Pips_miner_EA
・NEO_Sca_Morning_USDJPY_turbo
・powder snow, blizzard
and various other EAs,
and I am day by day conducting research toward the development of an EA that makes trading easier to win.
Here in the FX world,
(1) EA (automatic trading software)
(2) Indicators
are two major categories,
which many of you may already have noticed.
The difference between these two can be described simply as
whether trading is done automatically or manually.
The difference is
In practical terms, both types of software have the point where a signal appears for entry
and the point where settlement occurs
in common.
The big difference is that
with EA,
it handles from entry to settlement entirely automatically,
whereas with indicators,
you see signals, but you perform entry and settlement manually
as the difference.
This portion is completely a matter of preference,
・some people want everything to be done automatically (to leave it alone)
and
・others want only the entry point to be provided
(they want to enter by themselves)
and there are many such people.
In this sense,
both types of software are necessary, and to suit users' preferences, there are “two forms.”
However, here there is a very 큰 difference between the two.
That is,
whether backtesting is possible.
EA allows you to perform backtesting freely.
This makes it possible to check the signal's edge over a very long period, for example from 2005 to 2019.
In contrast,
indicators cannot be backtested.
（Even for signal-generating indicators,
and for discretionary indicators that do not generate signals,
backtesting is even harder,
Therefore, with indicators, you must
“rely on your own judgment to determine whether that signal has edge.”
in this form.
Occasionally, sellers may
write that, in the past, their results were like this!
and so on,
but
most of the time, such things only pick out periods when things were favorable,
and when you actually run the indicator in real-time,
you are very likely to encounter
false signals (values moving in the opposite direction to the entry).
In this sense,
indicators are software whose edge is very difficult to determine.
This is something to consider.
Therefore, when buying indicators,
you should refer to reviews by those who bought before you to judge their reliability,
and that is the approach you need to take.
However, even such reviews
often come from people with completely different trading styles than your own,
so it is not necessarily true that “high review scores mean you will win.”
This is a very difficult point in deciding whether to purchase an indicator product.
For these reasons,
we usually develop EA, but
we considered, “could we make an indicator whose past performance can be verified?”
and began developing a new indicator.
If past performance can be verified,
it would address the shortcomings of conventional indicators, which didn’t reveal edge,
and let you know whether there is an edge or not.
And just yesterday,
that indicator was completed.
Its name is
“Neko Indicator.”
With this indicator,
you can verify the past performance (2005-2019) of signals that are generated.
For more details,
please refer to the sales page,
as it has features quite different from conventional indicators,
and if you would consider adopting it, please do.
https://www.gogojungle.co.jp/tools/indicators/21014
Neko Doctor
