Can a simple trading system work?

Discussion in 'Trading' started by runningman, Dec 19, 2007.

  1. lindq

    lindq

    You need to ask yourself, "What is the larger trend?" Going long with the above, if the larger trend in the stock AND the market is down, you are going to be in trouble. This would likely be more of a shorting opportunity. This is why any MA system on its own is headed for failure without incorporating other considerations.
     
    #11     Dec 19, 2007
  2. Yes - simple is alwyas better because it's easier to manage and easier to follow.

    However, this doesn't mean doing a, say, 9/18 MA, and expecting it to work from 1934-2050.

    You have to through in optimizations, money management, and some common sense.
     
    #12     Dec 19, 2007

  3. Lookint at 5 min charts- I think its also important to have a rule that adds to winners as the trade goes the right way, but then it starts to complicate the process. I think the simplest solution is almost always best, so that's the trading method that would be right for my personality.
     
    #14     Dec 19, 2007
  4. Hi

    Could you please describe this simple idea in words?

    Thanks
     
    #15     Jan 8, 2008