Different triple MAs?

Why not time entries with RSI + Stoch + MACD ?

Find an ETF that just triggered a buy with the Stoch & MACD on the monthly chart.

Next wait until that ETF triggers the same on the weekly chart.

Next you wait until the daily chart is triggered..... then get in on it. Use RSI to fine tune it... you wanna get in when RSI is over sold.
 
Quote from lilduckling:

Why not time entries with RSI + Stoch + MACD ?

Find an ETF that just triggered a buy with the Stoch & MACD on the monthly chart.

Next wait until that ETF triggers the same on the weekly chart.

Next you wait until the daily chart is triggered..... then get in on it. Use RSI to fine tune it... you wanna get in when RSI is over sold.
More...

have never been a big fan of overbought oversold indicators...seems to me that they trigger to get out of a position when large moves are taking place when those rare large moves are what really matter sometimes.
 
Overbought and Oversold indicators are never going to get you in a great trend, they are for range trading. How long was the internet bubble overbought? How often is any real good trending mkt overbought?

Moving averages are what will get you in the great trends, not overbought or oversold.

There are different tactics to use when the mkt is in either a trending mode or if it is in consolidation. Two entirely different ball games. If you confuse the two you will have losing trades.

Example: Your job is to identify which mode the mkt is in, that is #1 objective, once you determine which you are in, trade accordingly. If in a range (consolidation), throw out the use of moving avg crosses, determine the range and sell the top of the range with the STOP above the resist line (pivot point, as R1, R2, do the reverse for the lower point of the range.

When you spot a trend starting, then you use the moving avg's and forget the range tactics, then you watch for the legs of the trend and become aware of the retraces, many traders misconstrue retraces as reversals and get a losing trade as the trend continues from the retraces (consolidation of the trend). Most retraces are just the bigs reloading the big guns to shoot another leg.

this is a summery, but in general a trader must determine what phase the mkt is in to determine the trading tactics for the mode.

WHEW, that was a lot of typing, but the good news is it is easy to do when the battle starts, it peel that off the top of my head took a lot of experience and losses before it became automatic to do when the HEAT is on......:D

PS, i did say overbought and oversold are for range trading.....BUT, i do not use them, clutters up the chart.......i like a clean chart...PRICE, volumn on one of them, mov avg of the 4, 9 18, exponential, and a +6 line and a -6 line from the opening print of the ES. separate charts, one is clean, just price.

PSS, plus a chart of the NYSE up issues with the bottom half being the down issues. another screen with the nyse tick, trin, tiki. and another screen with vol up and vol down, another screen with the naz and dow and another for the ER2 and the US bonds. and cnbc muted. maybe another tv with a good movie if the mkt is slow.....
 
If you're not completely programming challenged, give a try to WealthLab's free backtesting.

You can pick one of those simplest public scripts and tweak it to fit your needs.
Code: 
var BAR: integer;
for Bar := 30 to BarCount() - 1 do

begin
  if LastPositionActive() then
  begin
{ Replace the next line with the your own exit criteria }
    if SMA( Bar, #Close, 3 ) < SMA( Bar, #Close, 5 ) then
      SellAtMarket( Bar + 1, PositionCount() - 1, '');
  end
  else
  begin
{ Replace the next line with your own entry criteria }
    if SMA( Bar, #Close, 3 ) > SMA( Bar, #Close, 5 ) then
      BuyAtMarket( Bar + 1, '');
  end;
end;
This is a very simple script using 3 and 5 day simple moving averages. You can easily change the SMA to EMA, change the number of bars, or change the buy / sell conditions to add one more moving average to have three of them.

You can test it on whatever stock you want to.
 
Quote from bighog:

Overbought and Oversold indicators are never going to get you in a great trend, they are for range trading. How long was the internet bubble overbought? How often is any real good trending mkt overbought?

Moving averages are what will get you in the great trends, not overbought or oversold.

There are different tactics to use when the mkt is in either a trending mode or if it is in consolidation. Two entirely different ball games. If you confuse the two you will have losing trades.
More...

great feed back thanks! i think this exact explination is why i have been unsuccessful with my past approaches...i have not tried to identify the differences.

i think to that different moving average may identify to what degreee the markets are trending. Longer MAs define longer trends.

it seems more and more that differnt tactics need to be used in different contitions or in different securities..versus trying to fit everything under one roof.
 
Define "barely profitable"? My timing system is up about 20% for long only on the QQQQs and 30% for long/short. Max drawdown has been under 8%. How have the hedge funds been doing?


Quote from risktaker:

Damn! What are those hedge fund idiots thinking?! Some EliteTrader newbies figure out how to cash in on the cubes when those dumb pros trade billions of shares and are barely profitable this year? LOL!
More...
 
Quote from bighog:

Overbought and Oversold indicators are never going to get you in a great trend, they are for range trading. How long was the internet bubble overbought? How often is any real good trending mkt overbought?

Moving averages are what will get you in the great trends, not overbought or oversold.

There are different tactics to use when the mkt is in either a trending mode or if it is in consolidation. Two entirely different ball games. If you confuse the two you will have losing trades.

Example: Your job is to identify which mode the mkt is in, that is #1 objective, once you determine which you are in, trade accordingly. If in a range (consolidation), throw out the use of moving avg crosses, determine the range and sell the top of the range with the STOP above the resist line (pivot point, as R1, R2, do the reverse for the lower point of the range.

When you spot a trend starting, then you use the moving avg's and forget the range tactics, then you watch for the legs of the trend and become aware of the retraces, many traders misconstrue retraces as reversals and get a losing trade as the trend continues from the retraces (consolidation of the trend). Most retraces are just the bigs reloading the big guns to shoot another leg.

this is a summery, but in general a trader must determine what phase the mkt is in to determine the trading tactics for the mode.

WHEW, that was a lot of typing, but the good news is it is easy to do when the battle starts, it peel that off the top of my head took a lot of experience and losses before it became automatic to do when the HEAT is on......:D

PS, i did say overbought and oversold are for range trading.....BUT, i do not use them, clutters up the chart.......i like a clean chart...PRICE, volumn on one of them, mov avg of the 4, 9 18, exponential, and a +6 line and a -6 line from the opening print of the ES. separate charts, one is clean, just price.

PSS, plus a chart of the NYSE up issues with the bottom half being the down issues. another screen with the nyse tick, trin, tiki. and another screen with vol up and vol down, another screen with the naz and dow and another for the ER2 and the US bonds. and cnbc muted. maybe another tv with a good movie if the mkt is slow.....
More...


I agree....... i also assumed it was general knowlege that Stoch. $ MACD are for non-trending mkts..... a mkt may be trending on the dailys but range bound on the weeklys. Yes.... MAs are best for trending mkts.... but use MAs on a macro view or on a weekly chart and see how much $$ money you would be down before the MAs finally tell you its no longer a trend. All in the time frame.

Personally.....i use both..... and try to time them where i get that "sweet spot" where MAs agree in diffrent time frames.... same for other indicators. Its that window that gives the $$$$$
 
Take a look at his system(link below)u can fit a 3rd Ma onto it to give u the bias and only take trades in that bias,this acts as a great filter. Down=short,up=long sideways= chop. I suggests a 45,on the intraday setup.
Also use different time frames such as 15,30,or 60 min and look for the MA's to squeeze,these crossover points result in nice predictable moves and dont forget to use another momentum type oscillator for confirmations. This works very consistently on the Dow/Ym intraday. MA's work ask yourself why do most professional traders mention them. Bollinger Bands are are derived from MA's. Bollinger is one of the brightest traders out there. If you believe in them then use and develope them and keep working on it until u get the fit u like. For instance the MA's work well on the Dow/Ym but are wippy in the SPX/ES. etc. Find the right fit. Trading is all about personal style and personality,just find what wokrs best for you the trader.Hope this helps.


http://www.cbot.com/cbot/pub/cont_detail/0,3206,1180+26239,00.html
 
Quote from Dean240:

Take a look at his system(link below)u can fit a 3rd Ma onto it to give u the bias and only take trades in that bias,this acts as a great filter. Down=short,up=long sideways= chop. I suggests a 45,on the intraday setup.
Also use different time frames such as 15,30,or 60 min and look for the MA's to squeeze,these crossover points result in nice predictable moves and dont forget to use another momentum type oscillator for confirmations. This works very consistently on the Dow/Ym intraday. MA's work ask yourself why do most professional traders mention them. Bollinger Bands are are derived from MA's. Bollinger is one of the brightest traders out there. If you believe in them then use and develope them and keep working on it until u get the fit u like. For instance the MA's work well on the Dow/Ym but are wippy in the SPX/ES. etc. Find the right fit. Trading is all about personal style and personality,just find what wokrs best for you the trader.Hope this helps.


http://www.cbot.com/cbot/pub/cont_detail/0,3206,1180+26239,00.html
More...

huge help dean..thanks amigo. It shows your registered in 2003 and this is your first post? i am honored.

i also dont understand the argument that MAs might not work...maybe they dont pick the exact top or bottom....but i prefer a slightly later entry after direction has been confirmed.
 
http://www.tradertalk.com/tutorial/3x13x39.html




You may also want to employ as I do candle techniques ,looking for 5 min penetration with no follow thru at a particular ma etc. Also s/r lines such as Pivots may help with entry/exit points. Keeping a system simple and clean will be the best methodology.The system above has set of rules applied to it. Once you find a working set of MA's that you have watched for at least 50 to 100 entry's/exits,and are comfortable with you are best advised to write a detailed plan of action and sticking to those rules. Remember the markets are nothing more than psychological snap shot in any given time as to what the majority of people are thinking, so adaptation to market conditions is critical the more time you spend watching the markets the more you will realize we see the same things over and over again. MA's will help you there as I firmly believe having traded consistently fulltime for more that 6 years that MA's are one of the few indicators that will keep you on the right side of the market's. As traders that is all we are looking to be at any given time:to be oin the right side of the market. One more tidbit I have gleaned from other's and have employed,If you have a sound money management plan built into your methodology then: Always Always Always focus on your trade setup NEVER NEVER NEVER the money aspect of the trade. The money will take care of itself.If you have done your homework and studied and devised a sound trading plan then LET your system work for you,Don't let your system work you! Treat TRADING as a business.PERIOD.I wish you much prosperity and fullfiment in your trading career.
 
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