How's this? A simple MA crossover strategy

This is a discussion on How's this? A simple MA crossover strategy within the Trading Systems forums, part of the Methods category; pratbh if you add adx set at 6 if you look at chart ulvr the positive was rising, and is ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jan 1, 2005, 10:46am   #9
 
hornblower's Avatar
Joined Jul 2003
pratbh
if you add adx set at 6
if you look at chart ulvr
the positive was rising, and is now running flat
the negative is running low
indicating that at the moment, no negative signs
but positive is still high at 40 but flat
if the negative starts to turn up
and positive starts to turn down
then the run up may be slowing down
hornblower is offline   Reply With Quote
Old Jan 1, 2005, 2:17pm   #10
Joined Aug 2004
Quote:
Originally Posted by pratbh
Roberto, You mentioned you used to trade profitably with a similar strategy and presumably don't use it any more. Was there any serious drawback of the strategy?
I don't think so. I think I got off to a lucky start with it because the indices (on which I used it) were trending well at the time. It gradually became a little less profitable for me at about the same time that I developed an interest in cutting down on indicators and starting to understand price patterns, that's all. I didn't abandon it after a series of disasters or anything like that. My impression is that with sensible position-sizing and money management it will be profitable on anything "sufficiently trendy".
Roberto is offline   Reply With Quote
Old Jan 16, 2005, 2:21pm   #11
 
6 Posts
Joined Dec 2004
Quote:
Originally Posted by pratbh
Finally: a strategy I can call my own...I mean, can you believe it?

This is something I've been working on for past few months. It's a simple strategy with a strong visual component. All comments about enhancements (or to say it's a pile of cr*p) are very welcome.

The technical setting is as follows:
1. Daily chart
2. Fast MA: 5 day WMA
3. Slow MA: 12 day WMA
4. MACD-H (10, 21, 7)
5. Sharescope stop-loss line (trailing from below and above) at 2.3%.

These settings can be tweaked. I've chosen them simply because they feel 'alright'.

Markets to trade: a selection of UK stocks. I'd like to concentrate on the following 10:
AZN, AV., BG., BATS, GSK, HSBA, KGF, REL, RBS and SBRY. These will form my entire trading portfolio.

Go long (and cover shorts) when at least two of the following happen:
a. A bullish MA crossover is about to occur
b. The fast MA has turned up
c. The closing price has gone above the Sharescope stop-loss line
d. MACD-H is about to become positive

Exactly opposite for short positions.

Maintain a 2ATR stop loss, risking 2% at any time on any position. Add positions every 2ATR movement in your favour, i.e., you don't add a position until all prvious positions are profitable or at break-even point.

The condition of 'at least two' occurring is a filter. The Sharescope stop loss line acts almost like a parabolic SAR line.

I have no resource to back test it, I don't think you can back test it, because it would be pretty difficult to program as there are discretionary elements. Also I plan to add some candlestick patterns in the entry/exit criteria.

The words "about" trouble me. Too subjective. Quite often a MA or a MACD come close to crossing and do not. What is the measurement of "about". If you say DID cross, then there is no doubt or subjectivity.
jtimpson is offline   Reply With Quote
Old Jan 16, 2005, 3:22pm   #12
Joined Aug 2004
Quote:
Originally Posted by jtimpson
The words "about" trouble me. Too subjective. Quite often a MA or a MACD come close to crossing and do not. What is the measurement of "about". If you say DID cross, then there is no doubt or subjectivity.
Must say that I agree entirely with this, Pratik. MA's that are "about to cross" can actually turn into a "bounce" rather than a cross, which would be tradable (in some systems, anyway) in the opposite direction! The risk of jumping the gun on your MA crossover, if it's an intrinsic part of your system, is not only that you'll open a trade without the signal, but that you'll open one in the opposite direction to the preferred one.
Roberto is offline   Reply With Quote
Old Jan 18, 2005, 10:35pm   #13
Joined Mar 2001
Hi, good luck with your strategy.. the use of the Shaescope STOP LOSS Line with SL held both up and down was a basic idea I muted many moons ago .. called BarNov's FTSE250 Indexicator.

But I hadn't got as far as looking at othet indicators to assist me weedle out the whipsaws. The only real thoughts I had oir received from other people's input was to perhaps use a 3EMA of 5EMA as a slight filter.

The use of the StopLoss line works much better with shares/indiuces that have low volatility.

Paul.
http://www.trade2win.com/boards/show...?t=2641&page=1
BarNov is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Simple DAX Strategy??? cd173 Trading Systems 24 Nov 27, 2004 12:37am
Simple ESMini Strategy? cd173 Trading Systems 28 Nov 16, 2004 5:59pm
Simple Dow Strategy. schoe Trading Systems 1 Jan 28, 2004 12:48pm
A simple strategy dazzam Trading Systems 24 Dec 2, 2003 5:41pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)