Here's my strategy: RSI and ema crossover, need help!!!

[murray t turtle]

What is the point of using 2 emas that are virtually identical? Is your system's performance sensitive to the ema periods that you use? If so, that suggests it may not be robust.

Also have you tried using different time frames, e.g., daily and weekly for direction, shorter term for entry and exit. My personal experience is that depending on the volatility of the market I vary the time periods that I use.

%%
Good time frame points.

 

[wrbtrader]

...I'm finding that this works absolutely phenomenal on some trades where I'll hit 100+ pip targets with zero risk, essentially getting in at the low. But with a tight stop, there are some whipsaws as well. I could go on and on and on and on about the different nuances of this, but I won't bother right now, I figure if anyone has experience with this style, then hopefully you'd be able to give me some feedback.

Any thoughts/suggestions would really be appreciated. Thanks!!!

You stated you backtested this trade method on the 2min chart going back a few years...

I will assume you mean its profitable in the backtest but you're having trouble being profitable in real money trading via the exact same trade method ???

If that's the case...something is wrong (in error) in your backtesting or you're doing something different with the trade method in the real money trading.

The latter above requires you to dig deep into your trading habits in real money trading versus the results of your backtest on the 2min chart. Seems simple to do but most can't do it in situations like this because its "psychological" and that type of look into the mirror is a tough pill to swallow.

Ugly solution (typical reaction in situations like this) is that most will just change from a profitable backtest trade method to something much easier to apply to use in real money trading without backtesting it even if its losing money for them.

Backtesting is great but it has its own flaws that does not prepare a trader for application in real money trading beyond giving a trader insight into what happens if the trade method is perfectly applied under situations without any problems while in reality real trading occurs in not perfect trading conditions.

wrbtrader

 

[Warren]

I guess screening out the noise, in your words whip saws, is the hardest part for trend following systems. Maybe, you would need to test one or another filter to exclude those unwanted trades, but even that, there would still be many left. And that is the nature of a trend following system?

 

[murray t turtle]

I guess screening out the noise, in your words whip saws, is the hardest part for trend following systems. Maybe, you would need to test one or another filter to exclude those unwanted trades, but even that, there would still be many left. And that is the nature of a trend following system?

%% Strange ma combo, but each to his/her own.
Whipsaws usually mean its a sideways //slop chop, give it some more time.