I just ran a test using the Moving Median indicator instead of the Moving Average indicator for a Crossover system. The idea was to use the median, as it is a more robust statistical tool than the mean/average. You can find the results here... I was wondering if any of you guys have any experience of using the Moving Median as an indicator in a mechanical trading system? Where did you find it most useful, etc.?...
The problem with any moving average-oriented indicator is that it "works" well in a trending market, in hindsight. It doesn't "work" well in a sideways environment, in hindsight. You can also have a potentially infinite number of periods for the "indicator" too.
Hey Nazzdaq, I was not really trying to test the validity/profitability of a Moving Average Crossover system (as what you described is true...) but rather to set one test up to compare Median vs. Average. I was wondering whether other traders had any experience using the Median - whether as a replacement for the Moving Average or anything else...