Selecting the Efficient Market Indicators in the Trading System on the Forex Market

A concept of the trading system is proposed in which only selected market indicators generating the most beneficial recommendations for traders are included. The proposal can be implemented as an additional module included in the existing trading systems. We present a procedure, in which for a given initially considered indicators, only the selected ones being the most beneficial for a trader for a given time window are derived. In the procedure, an efficiency of initially considered indicators is verified in each time window on the basis of their past performance. Using the verification results the ranking and selection of the best ones is made. This procedure is implemented and included in the trading system on the Forex market. To evaluate our approach we have performed detailed experiments including real-world data covering the period of almost three years and ten different technical indicators. The presented results show, that the proposed approach is promising. The set of indicators included in trading systems should be limited and changed sequentially using the presented procedure.