A large number of trading operations require prospective members to purchase a set of indicators that educators say are “absolutely necessary” to trade successfully. These indicators often cost thousands of dollars and bear a striking resemblance to any of a number of well-known indicators that can be obtained on the Internet for little or no cost. In my opinion, there are few if any e-mini trading indicators that are worth the price many of these educators are asking.

Let’s be frank here. The trade education business has transformed from a performance-based business in recent years to a software-driven business. Because? Well the simple answer is money and responsibility. An indicator doesn’t have to show a profit and loss statement at the end of the day and at the astronomical price most are currently trading at, performance really becomes secondary. New traders get a false sense of security knowing that they are using a special indicator that has been proven to be profitable and they jump headlong into the fray with their new technologically advanced software. Nothing could be more misleading than this assumption; Technical trading makes good traders, not indicators.

Of course, any experienced trader can tell you that there is very little new in the world of value indicators. There is no magic in proprietary indicators; instead, most are a repeat or combination of long-standing indicators well known to experienced traders. With the exception of recently introduced order flow software, the norm is the old J. Wells Wilder style of trading with lagging indicators.

Geez, you’re being too harsh with the gauges. There must be some value in these programs.

I haven’t been involved in swing trading since my institutional trading days, so there may be something of value if you are a swing trader; however, if you are an e-mini reseller, there is no value in the magic hour indicator. You can find a large number of similar indicators in the listed indicators that are an integral part of any reputable trading platform.

For anyone who has read my previous articles, you know that I avoid all but real-time indicators, of which there are only a few. E-mini resellers require real-time information, not delayed information to make accurate business decisions.

There may be some obscure indicator that is going to change the trading world, but I have yet to find it. Most of the proprietary indicators bear a striking resemblance to the MACD, Stochastic, CCI and any of the other popular free indicators. My advice is to look at any proprietary indicator and determine if it will have any value in your trade, then make the decision to spend thousands if you really see value. For me, there is no value. Of course, you may feel differently, and that is a choice you will have to determine.

Finally, if a trading program requires you to buy their indicators to be a part of their program, you should probably look at other programs and see if you can’t find value in a program that teaches trading techniques, not indicator trading. As always, best of luck in your trades.