cathy am i right in assuming you get whipped a bit if trend stalls and starts to chop? Is there anything you can do to mitigate losses in this instance? are you exiting on the BBs?
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problems with MA-crossing
- Thread starter bora
- Start date
Yes, my theory is not as simple as it seems.
I only enter when:
there is sufficent room between the MA cross and the Bollinger Bands.
the stochastics indicate a nice move.
it is in high momentum times of day 9:30 to 12 or 2-4.
I exit when.
the prices seem to hesitate too much.
when it pierces a bollinger band.
when the stochastics start to reverse.
or the cross fails.
I only enter when:
there is sufficent room between the MA cross and the Bollinger Bands.
the stochastics indicate a nice move.
it is in high momentum times of day 9:30 to 12 or 2-4.
I exit when.
the prices seem to hesitate too much.
when it pierces a bollinger band.
when the stochastics start to reverse.
or the cross fails.
I looked at historical data and wrote on a paper what my entry & exit would be using this system. I started at year 97 and stopped in 99, my conclusion was that it was worthless. It missed the big moves in 97, 98 and 99. I haven't tried 2000, 2001, and 2002 YTD because it felt as a waste of time.
If the MAs crossover and shows a signal for long, but the bar is a black bar(open > close). Will you still take the trade?
Quote from bora:
Peri,
Did you tested this MA system? Are you trading it?
I don't strictly apply it but it is a consideration. On a 1 min chart I actually like to enter as the 3 changes direction, something stubborn in me that want's to get those tops and bottoms they say can't be had, assuming the 3 and 13 are at a reasonable distance from the 39( nothing close or converging) Stochastics are a must regarding any entry. If all goes well I will add as the 3 and 13 cross.