Would you tell me how you always come up with your own algorithm? I’ve been combining famous Indicators and changing the parameters but anybody who studied even a little bit of trading can do this and therefore I think that only combining famous indicators won’t be critical. Do you stare at the stock charts and suddenly one day come up with a profitable algorithm?
First of all, yes I think following the markets and looking at the charts is very helpful, because you get to see how the indicators work in real-time. From experience, you will gradually observe how the change in these indicators lead to good trading opportunities and you can use that as foundation to build the algorithm. All indicators are simply measures of buying/selling energy, and they are represented in terms of trend, momentum, oversold/overbought, etc.. It is hard to guarantee a profitable strategy but combination of these indicators help you estimate a good time to buy and sell consistently. I suggest starting simple with 1 stock or Nikkei, use a stock chart with indicators to help you visualize where are good buy and sell points. compare this with just buying the stock and hold for the last 10 years, if you can outperform, then you are on the right track.