I have been talking to someone that claims they use MA crosses to trade and thats it. No additional indicators at all. Just wondering if others are using MA crosses and if so what has been your success?
yes, i use price crossing over an upward sloping 20 period MA as a buy signal with success. best, surf
the exits are discretionary based losely on an ATR formula described by dr. van tharp and good old intuition. best, surf
What makes you think it is the MA based entries which make your trades successful , as opposed to ATR and intuition based exits? I mean, do you have any reason to believe that if you entered randomly, or say based on the direction of the previous bar or any other criteria and then applied your exit rules, the results would be worse?
Actually, none whatsoever. Except that I back tested this method and it works well with trailing stops in place on the 13 minute and daily charts. A lot of the market is "feel" and you only get that with experience.
a good entry is the key, regardless of what the gurus say. exits are important, but without good entries you WILL slowly bleed (money) to death. best, surf
furthermore, skeptic, just look at any intraday chart of a heavily traded stock--when the sloping 20 period sma is violated by price --the move tends to continue. yes, i have extensively tested multitudes of methods and have found that simple is best. surf