April 15, 2020

Trading Indicators vs Trading Systems

We get asked a lot, what's the difference between trading indicators and trading systems, here we explain some of the main differences.

What Are The Differences?

Well, what are you trying to achieve here? If you are an established trader with a proven strategy who just wants to pinpoint something a bit faster. You may just need a trading indicator.

If you are new to trading or failing at trading then it may be best to just scrap what you are doing and get a proven trading strategy. This is usually in the form of a trading system.

Let me explain further, Trading Indicators are usually designed to do one thing. An Indicator like the Value Chart would find overvalued and undervalued price. This would be beneficial to a scalper or someone who trades price in general. Though I would not use this indicator alone to make my trading decisions. 

Value Chart Indicator

If you chose to trade indicators make sure you have a plan, mixing indicators can also be a good idea to form a system-like approach to trading. This means you could combine 2 trend indicators to get an entry and an exit

This is a very simple profitable setup. 

An example of this is below, I took the Trend Indicator and the Squeeze Indicator, which are both trend following indicators which are not correlated to enter and exit trades. It is as simple as drawing a line of support and resistance (yellow line), then waiting for the Squeeze (bottom Indicator) to change direction followed by the Trend changing colour (the bars) when this happens we get winners all around.

Trending System

Try Trading An Algorithmic Trading System

Our Trading Systems work totally different to Trading Indicators, they don’t look at just one thing and display it on your chart, they do most of the work for you.

They are built with over 1000 hours of machine learning to form the algorithms. They give profitable trades of above ~80% and are regarded as some of the best trading software around.

The Day Trading Software

Designed for Day Traders and Scalpers this system will even warn you of areas to beware of. It will also give you exact entries and exits and will give you a live stop loss. Check it out here.

The Swing Trading Software

The same can be said for our Swing Trading Software above. This has also undergone over 1000 hours of machine learning to build its algorithm and it is tuned for higher timeframes for swing trading. It has been around for a long time and has hundreds of happy traders using it. It will get you into trades to stay in for days, weeks, even months. Check it out here.

Whatever type of trader you are and however you wish to trade feel free to drop us an email, we are always happy to help you.