Trading system with the “NonLagDot” indicator

Today we will talk about the use of the NonLagDot trend indicator, which is used by traders to identify trend trends. We will find out what this tool is. We will also find out by what algorithm it works, what signals it gives to enter the market. It is important for us to understand whether it is profitable to use it in our trade or whether it is better to forget about it forever.

My trading experience with “NonLagDot”

I should warn you right away that I did not trade on a real account with this instrument. True, I worked with him in the strategy tester for the GBP / USD pair. I admit that there were some drawdowns . As a result, I earned $ 234 in lots of 0.1 within a month of trading. It is my deep conviction: this tool will be more useful for an experienced trader . The higher his skill in working with such indicators, the more likely he will find him a worthy place in his trading practice.

I do not recommend trading with “NonLagDot” on small (М1, М5, М15) timeframes . You will encounter unnecessary noise and a lot of false signals here. TF H1 will be the most acceptable for trading. There are no restrictions at all regarding the use of foreign exchange instruments – trade on any currency pair or other asset.

I did not use NonLagDot in its pure form, but supplemented it with Bollinger Bands , a standard indicator from MT4. The principle of operation with these two indicators is simple, as are the entry signals they give.

Installing indicators on the chart

It’s time to talk about installing these two tools in MT4. Both indicators take out in any way that you like – through the “Navigator” menu or the “Insert” on the toolbar. I used the “Navigator”, this method of placing instruments on the chart seems to me faster and more convenient.

Bollinger Bands

This tool is included in the standard MT4 toolbox. It can be drawn onto the chart by following the path “Insert → Indicators → Trend → Bollinger Bands”:

Some indicator parameters will need to be corrected, set new values:

  • Period – 20.
  • Apply – “Close”.
  • Deviation – 0.5.


This indicator is not included in the MT4 package, so you need to download the indicator at the end of the article and install it in the terminal yourself. Pull it onto the chart via “Insert → Indicators → Custom → NonLagDot” or using the “Navigator”. You don’t need to change anything in its settings, they all remain “by default”.

What is the NonLagDot tool? It is a curved line with a dotted structure, colored in one of two colors, depending on the direction of the trend:

  • Red dotted nodding – downtrend, looking for entry points for sales.
  • The blue dotted curve is an uptrend, we are looking for buy entries.

Market entry rules

Market entry rules

The rules for entering the market with this indicator seem so simple that I had to “connect” an auxiliary indicator in the form of Bollinger Bands to confirm more accurate signals to enter the market.

Buy signals

The algorithm of operation of these two indicators in a pair based on buy signals is as follows:

  1. The curve of the “NonLagDot” indicator changes the color of its points – they turn blue, which means the beginning of an upward trend.
  2. All three lines of the Bollinger Bands indicator cross the price and the NonLagDot curve.
  3. Bollinger Bands curves are below the price and below the NonLagDot indicator curve.

Sell ​​signals

The conditions for a sell entry are opposite:

  1. The points of the “NonLagDot” indicator curve turn red, which tells us about the beginning of a downtrend in the market.
  2. The three Bollinger Bands curves also cross the price and the NonLagDot curve.
  3. Three Bollinger Bands curves are located above the price and points of the NonLagDot indicator.

These three conditions allow us to enter the market with a sale:

What are the signals to close positions?

There are no rules about how to close deals for working with these two indicators. You can close deals based on the signals of both indicators. For instance:

  • If you are in a buy and the “NonLagDot” indicator points turn red, this may indicate a trend change or price rollback. This signal can serve as a signal to close a buy position.
  • Also for this purpose, you can consider the position of the curves of the “Bollinger Bands” indicator. If all three of its curves begin to change their direction, this can also be considered as a signal to exit purchases.
  • The deal can be closed at breakeven – your task is to monitor the situation and follow the price, aiming for the maximum breakeven.
  • Also, the deal can be closed by Taking Profit with the minimum profit of 10-15 points .
  • In the worst case, your position will be closed by Stop Loss. This is especially important for those who place small “stops”.

From my personal experience of trading in the strategy tester, I can say that I closed at breakeven more often. Therefore, choose your own convenient way of closing positions. Do not forget to focus on the market, the mood of its players and the trend of price movement.

Summing up

Initially, it was difficult for me to say anything definite about the effectiveness of “NonLagDot”. Trading in the tester did not impress me much with this instrument. Together with another indicator, it seemed to me more interesting. Now we can draw certain conclusions:

  1. NonLagDot signals are clear and strong enough, but the tool is generous with false signals.
  2. There was a lot of “noise” during testing.
  3. I would estimate the efficiency of this indicator as 50:50, and in some cases – 30:70.

Whether to use it in your trading in general, combine it with other instruments or not is up to you. A more accurate assessment of this instrument can be given by someone who has been working with it on a real account for at least one month. This period is enough to get any serious trading results.