What does it mean when indicators repaint?
What is Repainting / Curve Fitting?
Is it even a Scam?
I think it probably is – and it is hard to spot.
You can buy indicators that bolt into a trading platform whether this is MT4, Tradestation, Ninja Trader..etc.
These indicators are algorithms that spit out some kind of visual representation on what you should be doing based on price, volume, time..etc.
They could change the colour of a candle for you or put a dot above or below it, they could plot a kind of chart underneath like an RSI or stochastics..etc.
The point is it is a traditional indicator but it something which someone has come up uniquely. They will tell you to go long here or short here and you can buy it on a subscription fee or one-off fee.
Repainting indicators are often used to scam forex traders…
Repainting basically means that an indicator is changing an outcome re-painting its historical data…
The repainting indicator scam is something that instead of in real-time whether you should buy or sell, it will repaint that candle further down the line to make it look better than it was.
As price moves on and the bars are updated it will change how that signal has occurred and if its losing it probably won’t show it. So basically completely misrepresenting what you’re doing.
How to recognise:
1) Does the indicator change historical outputs after each bar?
2) Too good to be true in backtesting?
3) VIsually looks like it catches every turn.