M.A. crossovers

[Gyles]

Quote from Gyles:

Sincere thanks Murray for your information. Has anyone read the above mentioned book (Traders Secrets)?

Have reviewed the book (Traders' Secrets) and the link for the same is as follows:

TradersSecrets Review

 

[Brucelee]

Check this link out for MA Crossover tips.

http://clicks.aweber.com/y/ct/?l=AHYzm&m=1d5.F7SzAVcf5r&b=JGrBlf.op3EVqwrTMkH70g

 

[murray t turtle]

Quote from Murray Ruggiero:

All seriousness, dual moving averages systems are totally unreliable. I know some long term traders who at least until five or six years ago used an 4 moving average crossover system with walk forward analysis. If you want to learn what walk forward analysis is, I have a tutorial you can download on my site.

http://elitetrader.com/vb/showthread.php?s=&threadid=100883


My research showed that three MA systems are a lot more stable than a dual moving average system. In addition triple moving average systems are almost as good as using four moving averages.

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Tom123;
Agree with Murray,specifically, on the following;
you can probably improve on a say,
50& 200 dma cross.

Especially if you use discretion;
helpful combo, probably you can improve it.

Murray

 

[lindq]

Trying to take a long signal from an MA crossover is like trading in the rear view mirror.

Oh, price WENT up. (As in the past.)

Hardly a solid entry point unless you have a strong market, and a strong stock behind you.

In most cases, you're buying into the 'great fool' theory, and you're most likely looking at a reversal.

 

[Murray Ruggiero]

I wanted to give you a little more detail about John Fritz. He used a five moving average crossover system which he optimized walk forward. He allowed parameters to change based on a algorithm which cause them to only slowing shift over time. His optimization window was about 2500 days of data.

He was featured in Futures magazine in the late 1990's which is how he ended up in the book.