SMA is my favorite
- Thread starter eleanorK80
- Start date
On the main topic, if you like SMAs try EWMAs, they normally give better results.
Markets are random. On the other hand markets are not random.
Markets are Randomly Random (RR)
That's the fractal part.
Hahaha
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That's what the famous Japanese CIS trader used to do.
He bought stocks that went down x% away from his preferred SMA
What's between you and the living you could make trading this strategy ?
Nothing. I just use a different style for trading. I look at MP and Value areas. That does it for me to pin point entries and exits during the day in combination with order flow represented trough cumulative delta. But if that would not exist, I would use just Ma.
%%
SAME way with a weighted moving average, many times ;
but the difference is so little.
It's good to differ, we don't want every body going to chicago to buy or sell or all use a wma.
Its not rocket science, even though Mr Musk+ his rocket science is right , to oppose unions;
+ he may not completely agree with my rocket science comment. Fine, by me LOL
I have a low maintenance but profitable strategy using a 12 Period SMA (calculated on the monthly candles (not daily)) price crossover strategy.
The strategy is about as easy that you can get: Go long once price first crosses above the SMA line. Use the same SMA line as your stop loss. It inherently just keeps you out of corrections and bear markets albeit with a little bit of in and out chop while the market trying to find it's direction.
For example, it would have taken you out of the worst part of the Covid crash and then you re-entered on 6/26/20 and kept you in until 1/26/22.
The strategy is about as easy that you can get: Go long once price first crosses above the SMA line. Use the same SMA line as your stop loss. It inherently just keeps you out of corrections and bear markets albeit with a little bit of in and out chop while the market trying to find it's direction.
For example, it would have taken you out of the worst part of the Covid crash and then you re-entered on 6/26/20 and kept you in until 1/26/22.
As you say, catching a trend is easy with an MA. What I have experienced is that the whipsaw periods eat up all the profits obtained during the trending periods. Since you don't provide any evidence that a 12 period SMA method has positive expectancy, I tend to doubt your claim.
I don't use MAs anymore, and stick with oscillators. No, I can't provide proof of positive expectancy either, but I do like the higher winning percentages over trend following with MAs.