Moving Average Crossover

While the list is a useful contribution and effort on behalf of the provider(s?). It would be immensely more useful to provide samples of N period objective functions or simple returns based upon any given indicator's entry/exit criteria.

Any list of that somewhere on the forums?
If you are going to spend that much time benevolently coding indicators, why not provide the summary of trades measurement lists (annualized % rtn, sharp ratio, PF, etc.) as well?

Too much time is spent showing how to code a price derivative indicator on the boards, and not enough devoted to showing statistical measurements generated by utilizing these indicators. Anyone looking to learn should start focusing on this aspect before getting lost in the myriad labyrinth of subjective price derivatives.

The dearth of knowledge in this area is evidenced by some of the comments on this thread, like "what is the best crossover parameters," or "how do you get rid of the lag?"
 
Quote from clarodina:

An article on tscc showing how tokais uses 2 moving averages crossover to trade. Wonder how to adapt the formula for closing above or below the moving average instead of using 2 moving averages.

Just treat price as the other MA.

Price closes above MA = go long

Price closes below MA = go short

Will work beautifully until price chops around the MA, then you will lose a ridiculous amount of money.
 
Hi Steve,

Thanks for the input...

TradingBlox has a very good forum on trend trading.Dont have to be a user either.(I am not).The topic of MA's and slope was discussed..

Happy Holidays to all







Quote from steve46:

Hi folks

You comments about moving average crossovers got me thinking about my own approach.

I think you can make it work if you understand the limitations of moving averages in general..

A trader interested in using MA's needs to get intimate with the basics. You need to be able to answer the following questions

1. What are the differences between the most commonly used MA's?

2. How do you decide which length(s) of MA to use

3. Are crossovers the best way to go, or could one do better by using slope or combining MAs with other filters?

4. Do we understand the dynamic nature of MA's and how that benefits the trader intraday? (as opposed to a static intraday indicator like pivots for instance).

I was reading a book by Ben Warwick ("Event Trading" when it occured to me that I needed to get into the subject in order to find an edge (to see if there WAS an edge to be found). The author thinks that moving averages do in fact offer a tradeable edge if approached correctly.

I am constrainted somewhat in what I can say about my own system but I will say that I use longer MA's on several time frames and I do pay attention to crossovers but only in certain circumstances. Perhaps my comments and charts posted on the thread "Ideas for struggling traders" will help you...


Best of luck

Steve
 
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