Here's my strategy: RSI and ema crossover, need help!!!

Discussion in 'Strategy Building' started by BillySimas, Jul 7, 2006.

  1. %%
    Good time frame points.
     
    #11     May 18, 2018
  2. wrbtrader

    wrbtrader

    You stated you backtested this trade method on the 2min chart going back a few years...

    I will assume you mean its profitable in the backtest but you're having trouble being profitable in real money trading via the exact same trade method ???

    If that's the case...something is wrong (in error) in your backtesting or you're doing something different with the trade method in the real money trading.

    The latter above requires you to dig deep into your trading habits in real money trading versus the results of your backtest on the 2min chart. Seems simple to do but most can't do it in situations like this because its "psychological" and that type of look into the mirror is a tough pill to swallow.

    Ugly solution (typical reaction in situations like this) is that most will just change from a profitable backtest trade method to something much easier to apply to use in real money trading without backtesting it even if its losing money for them. :(

    Backtesting is great but it has its own flaws that does not prepare a trader for application in real money trading beyond giving a trader insight into what happens if the trade method is perfectly applied under situations without any problems while in reality real trading occurs in not perfect trading conditions.

    wrbtrader
     
    Last edited: May 18, 2018
    #12     May 18, 2018
  3. Warren

    Warren

    I guess screening out the noise, in your words whip saws, is the hardest part for trend following systems. Maybe, you would need to test one or another filter to exclude those unwanted trades, but even that, there would still be many left. And that is the nature of a trend following system?
     
    #13     Jan 22, 2019
    murray t turtle likes this.
  4. %% Strange ma combo, but each to his/her own.
    Whipsaws usually mean its a sideways //slop chop, give it some more time.:cool::cool:
     
    #14     Jan 24, 2019