Moving average on equity curve:

One of the first things I ever backtested was :

(1) Let B = bias, where B = 1 for long, and B = -1 for short. Initially select B randomly.

(2) Enter trade with bias B.

(3) If trade in (2) is a winner, bias remains unchanged. If trade in (2) is a loser, reverse bias (ie. B = -B).

(4) Go to (2).
 
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