The advantage of long-term strategies is the smoothing of factors such as lag, redrawing, price noise, slippage. But the desire of traders to get everything as quickly as possible makes them work with short timeframes, where all these problems interfere with the implementation of the strategy. It happens that candlestick analysis shows an excellent entry point, sliding or oscillator are in the right areas, the trader opens a position at the trend reversal and … Losing money. The candle is redrawn, the trend continues to move instead of a reversal. At such times, there is distrust of the broker and trade in general. And if in 50% of cases the broker’s fault is indeed, then in 50% of cases the problem is not in it. Recommended indicators Forex without redrawing also will not solve the problem.
Forex indicators without redrawing: how to minimize risks
The classic mistake of a novice trader is a lack of understanding of the principles of the over-the-counter and interbank markets. At the head of trading is the price of an asset, which is formed by supply and demand. Price quotations are transmitted by suppliers to brokers who transfer them to the trader (to the platform).
Technical indicators are a display of the mathematical formulas laid down in their code base. When receiving quotes, the indicator displays certain patterns for the past and current periods. Since it takes time to transfer data from suppliers to displaying a graph (a fraction of a second is enough), there are delays. For a similar reason, a redrawing occurs: if the price changes its direction faster than the quotes data goes to the trader, the chart will be automatically redrawn in the platform. There are Forex indicators without redrawing on the Internet, the formula of which contains the averaging of price values. In practice, to achieve complete elimination of this problem is almost impossible.
How to reduce the risks of losses from redrawing Forex indicators:
- Follow the economic calendar and do not enter the market on the news. Volatility, the rate of price change at this moment is huge, there are strong institutional investors in the game who will take down the stops and orders of new traders in a matter of minutes;
- try to avoid trading in a flat when there are no strong players on the market and the price is jerking from side to side with no visible trend;
- Start with cent accounts. The demo and real market are very different. Therefore, after the demo account, you first need to run the strategy on the “centovik”;
- Do not strive for quick money, choose medium timeframes. Only by being confident in your abilities, go to M1-M5;
- Use forex dial indicators without redrawing. This is not a panacea, but partially solves the problem.
Also important is the speed of the platform, broker servers and data transfer. The slower the speed, the more often there will be a redraw. To delete temporary files, use scripts, to check the integrity of the broker, compare its quotes with TradingView quotes. We hope this article was helpful to you. Leave your opinion in the comments!