2 X MA systems - what is the optimum multiple Setting ?

[NVP]

hey all

just wanted to ask out there .............anyone using standard MA based systems ( price above / below all or crossovers etc etc)

what multiple are you using to differentiate your Fast / Slow MAs ?

eg do you use a X 4 or X 6 or X 8 ..or more ?

eg ..........Caps 3 ducks system uses

4h on a 60ma
1H on a 60ma
5m on a 60ma

so thats a 4 X 4 X 12 set of multiples for the MA's

personally I would go no lower than a 4X multiple as any closer is tooo close

and I would then go no larger that 8 to 10 multiple as thats stretching things on a Slow vs Fast MA signal

So for me I suppose a double MA based system would be really around the X6 multiple ...........but then I dont use that in reality !

let me know what you think
N

 

[Trader333]

If you are going to use something such as this it would make more sense to not pick the typical values used by others. That way you are less likely to be following what many others will be doing at the same time.

 

[wackypete2]

If you are going to use something such as this it would make more sense to not pick the typical values used by others. That way you are less likely to be following what many others will be doing at the same time.

Agreed. You would get run over by the masses entering and exiting. I've never really looked much at multiple ma's but I always like the keep it simple ideas

Peter

 

[Vicorka]

MAs have big lag. No matter what you trade, you will have periods of high and low volatility. If you relay solely on MAs, sooner or later you will run into a situation when all your profit will be wiped out due to the choppy negative trading. In worst case scenario, in addition, you will miss a few positive trades as you will be afraid to enter a trade after that choppy trading. To avoid it you will have to monitor volatility and adjust MAs setting to it - too complicated.

I've scaned the number of systems on various indicators and may say with high confidence that systems based solely on MAs were the worst...

Try to look at indicators which carry a volatility factor.

 

[NVP]

thanks all.......

sure MA's are lagging.......and i like the comment about volatility

re using the Norm herd MA's......yep ....interesting......its funny because some things tell us to utilise recognised fibs, MA crosses , Key S/L's as this is where everyone is making decisions and you can leverage that ......

so I do try to use non standard combos and settings to get an edge ....but is it better to anticipate the Standard setting (go before)..or let it happen and take a later more lazy trading approach once the herd have acted ?

i'm quiet a big fan of brinksmanship in trading and business life generally.....perhap its the way in trading as well....?

hmm
N