Most people use indicators for relatively short-term trading.
Generally, the Option Alpha Signals report reveals some very interesting data that is very eye-opening.īy buying the Signals report, you will gain access to 3 documents: However, the most profitable indicators were all longer-term indicators. The Signals Report: This is the report itself.In this 76-page long document, Kirk tells you about the backtesting, his opinion, some sample portfolios and more.
#SIGNALS OPTION ALPHA PDF PDF#
The Top Settings: This 9-page long PDF shows the top settings for each indicator for different performance metrics.The Appendix: This 222-page long document walks you through each indicator and all the different settings together with their performance and more.īy buying the report, you will have access to all future updates of this report.įurthermore, it reveals the best indicators and their settings for shorter-term and medium-term trades.But I doubt that there will come any updates. But is Kirk’s backtesting actually translatable to real-world trading? Do we really use indicators like they were backtested? On the following image, you can see all of the backtested indicators:Īs you probably have realized by now, this research report reveals some shocking facts about technical indicators. I don’t believe that most people use technical indicators the same way as they were backtested. With that being said, I don’t think that the data found from Kirk’s research is invalid or useless. Most people don’t solely rely on one technical indicator to make trades.Often other information such as fundamental factors, news, trend-lines or multiple indicators are used. The backtesting bases all trading decisions on a single indicator. All backtested trades are done as follows: buy when an indicator crosses a certain level and sell when the indicator crosses a different level.This is once again, not necessarily how most people would use technical indicators. However, the vast majority of people don’t wait to sell their positions until an indicator crosses another level. Generally speaking, humans don’t tend to take profits or losses purely based on an indicator.Last but not least, the backtesting simulates 100% robotic, emotionless trading.
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