Surf, What kind of time periods? 1,5 min?? Bobcathy u are only using a 13 min bar or 13period ma? Tia
How can you test a method if your exits are based on intuition? BTW, I absolutely agree with you that entries are as important as exits. After all you profit/loss is the difference between the two. That is exactly why I was wondering why you believe your 20 MA crossover entries are any better then 5 MA or 105 MA or MACD, or direction of previous bar or whatever other criteria are out there. Hope you guys do not take my questions personally, I am just curious. I backtested a number of MA based strategies a long time ago and the results were not impressive (I really do not remember the specifics though). Then again, I was trying to backtest a purely mechanical system based on MA entries and exits, of course introducing intuition into the game renders backtesting completely impossible IMO. PS - I took a look at IBM' 5min chart with 20 period SMA. It is a beauty today, you would have made a bundle (again depending on your exits), on friday though you would have been whipsawed to death - they crossed on just about every bar.
skeptic has a good point about being whipsawed. if the stock is not short term trending, you will be whipsawed using this method. i remedied this problem by making no more than 3 entries long and 3 entries short--being stopped out each time before i start looking for another (hopefully) trending stock. best, su4rf
I just seem to be able to stare at the screen with total attention and actually make the method work. I watch for pauses and scale out on spikes. I find the simplest way is the best way
what i am saying is that anyone that simply trades MA crossovers isnt a real trader he/she is simply a techncian..no offense (OK you know...cross over click mouse..cross back click mouse... repeat.. I divine the market...I predict..I assimilate...i am a T-R-A-D-E-R and i am good at it