Conceptually define your trading edge
- Thread starter Calmness
- Start date
The more experience you have, the more one can trade crossing moving averages, just cause they cross does not mean one reverses, it is signals the next set of rules to find a signal. Crossovers do work, but moving averages have to be longer and based on weekly or even monthly timeframes then multiplied for dailies.
As far as defining my "Edge" = Risk Management and Equity curve, Risk is only part of trading that can be controlled more than 50% for me. Equity curve based on separate open and closed positions by backtesting the "mean" of drawdowns or possibilities.
As far as defining my "Edge" = Risk Management and Equity curve, Risk is only part of trading that can be controlled more than 50% for me. Equity curve based on separate open and closed positions by backtesting the "mean" of drawdowns or possibilities.
Time the market around blue chip industry leaders ex-dividend date, using options. It's like a time warp ...
ITYM "demand". HTH, HAND...
cross overs often signal a pull back..........so that is why people say cross overs fail.......or whip saw
K
krugman25
Positive P/L - The only edge that matters.
Statistical analysis again is more meaningful when you start varying the parameters to find the best fit for a particular instrument or time period.
I shall post a rough example.
Buy here , just the concept is enough on which a system can be based.
Like just post your law, "every action has equal and opposite reaction", on which your system is based. We intend not to pollute the concept of the law with the details of the rocket , fuel, engine, etc.. Its just the law, the basic concept on which your system is based.
Does this mean you do not have any chart examples of tighter moving averages are different between two different instruments or of moving average crossover eating away the profits of the last trend ???
I'm just trying to visualize your edge considering you must be able to see it on your charts.
wrbtrader
I shall post a chart, soon.
Follow the price, this is deeper than it seems.