I coded this up and its v similiar to an EMA. Backtested on the daily charts using my interpretation of the signals. first backtest didnt really show this had an edge. any ideas ?
This IS the definition of an EMA. Using an EMA on the lows and another on the highs reduces whiplash. Both are very close to the 50 EMA used by many institutional investors. I use this to identify support for scaling into long position trades and investments. And for ditching weakening positions. It is not good for in-and-out, as your testing showed. Attached are examples. Good for quick estimation of market conditions.
scaling in.. I read another on of your posts that scaling in always reduces expectancy. could you clarify.
Sorry to hear that. Answering your question, I don't think either the goody two shoes nor the psycho would help. Ideal would be somewhere in between.
Probably so drunk he can't find his keyboard. Perhaps one of his "cousins" will show up here with a report.