Trading using MA's
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     pennywise75
Member
Username: pennywise75
Post Number: 2
Registered: 07-2008Rating: N/A
Votes: 0
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| | Monday, August 04, 2008 - 03:00 pm: |  
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Howdy
I have spend a bit of time effort and capital trying to find a "system" that suits my needs
After going almost full circle I leaning towards a 5,21,63 day EMA (as preset F5)
I am still in the process of back testing but I think my enter signal will be the 21 MA and exit will be the 5 day
The 63 MA is to get an overall idea as to where the trend is heading, if its looking bullish only longs can be taken
I work full time and have a young family, so the time factor plays a huge part. An I hope this system will give me a better then 60% hit rate
Any thoughts about a filter that could help out with this plan?
The rest of my plan is capital management..
"I knew all the rules, but the rules did not know me"
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rastus81
Member
Username: rastus81
Post Number: 18
Registered: 12-2007
Rating: N/A
Votes: 0
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| | Saturday, August 29, 2009 - 06:05 pm: |
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I found an interesting quote about Trading systems by Glenn Neely.
It would seem, that we need to change our style according to what the market is doing. (I have edited it to hopefully suit the forum rules)
No matter who you are, no matter what approach, technology or system you use, you can only trade in one of three ways...
1. Trend Following (buy on strength, sell on weakness)
2. Top/Bottom Picking (sell into new highs, buy into new lows)
3. Bargain Hunting (buy on pull backs of an uptrend, sell on rallies during a downtrend)
Most people, consciously or subconsciously, pick only ONE of the above three strategies; then, they try to get the market to "behave" and fit their trading style. THAT is the reason most do not consistently make money trading. Each strategy is effective only about 1/3 of the time. When your preferred approach does not fit current market conditions, you will lose money (or breakeven) about 2/3's of the time.
The ONLY way to overcome this problem is to learn to adapt your trading style as the market demands it. ********** You need to know exactly how to place stops based on which trading "style" is most effective in the current environment. If a market is trending, your stops and exits must be different (no matter what the count is) than if the market were in a "bargain hunting" or "top/bottom picking" environment.
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