Richard - No doubt when a trend establishes a crossover system like this works great and the 2-4pm (actually even 1:15-4pm) timeslice gives a good example of that. When I mentioned chop though, I was speaking more of the period like 11-noon which looks like it might have turned in maybe 5 or 6 whipsaws if I'm reading this right. The trick of course is to figure out a filter to keep you out of non-trending periods. Maybe I'm missing that filter in what Jeanmichel's written so far or he could explain how he avoids getting chopped up during sideways trading.
This is also from the original post from this thread. He says he has been using this for two years. Has anyone had the thought that maybe this was a salesman from either Metastock or PFG Best Direct who put out this post? There was a link to PFG, wasn't there? Am I being paranoid?
Hello Guys, I'm waiting and waiting and waiting............. Where are the other trading systems ??????????????? I'm still waiting !!! Cheers Jeanmichel
I would be curious to see how the system performed this morning. I did some paper trades this morning and I am mildly down to break even on the day. IMHO I don't think this system would perform well during trendless-whipsaw days like this morning on the NDX.
rickty, Did you papertrade the system or you just looked at the end of day where your entries could have been with the benefit of hindsight? The thing is in hindsight you probably don't get as many false signals and I have the feeling that in real time the MA, MACD crossovers take place with a lag that's something you always get with oscillators you can have the 2 lines far apart then the 1' chart expands and suddenly it looks like a crossover taking place then the next one min. bar engulfs the previous one(s) and the market turns around. It's too easy to look at the chart and say OK this morning I could have made 40 points, everyday I could have made 40 points if I knew what the chart was going to be at EOD.
kicking, In my testing of the system so far, I've assumed that entries are made at the close of the 1 min. bar. This then would set the level of MACD (and the EMA's) for that bar. Richard
Jeanmichel, Can you provide any guidelines for how you would have traded the NQ this morning? Thanks. Richard
Here is a very, very simple system that buys strength and sells weakness. No other indicatiors are needed.