Definition – What does Trading Naked mean?
Trading naked is a trading strategy that encourages the use of few carefully chosen indicators. Forex traders have the ability to add multiple indicators to charts, often resulting in a cluttered mess. Trading naked minimizes the clutter and provides a cleaner chart that can make it easier for a trader to spot opportunities.
ForexTerms explains Trading Naked
Despite the lovely image it conjures up, trading naked can be a positive change for technical traders who find market noise distracting. Depending on a trader’s particular issue, trading naked may involve removing indicators, increasing time frames, reducing the number of currency pairs being monitored or even cutting down on information sources. Basically, trading naked is about simplifying your trading. Despite the name, you can keep your clothes on – but, really, where is the fun in that?