The problem with that is that you need the occasional huge home run for a system like this to even have a chance at being profitable. The home runs are the only defense against the constant in/out chopping that eats up your profits that occurs every so often. The only other alternative is to find a way to eliminate the losses in choppy environments. I haven't been able to figure that out.
I just put a 300ma on a 5 minute NQ chart. This morning price stopped and reversed right on the ma. Holy shit! The 300ma was support! I actually used to believe that sort of stuff. Now I think it's funny when people say that price found support at a moving average. Price stops and starts all over the chart all day long. Any period moving average will eventually mark a high or low somewhere.
I think most trading is probably like that in one way or another. You either have a lot of scratches/losses and occasional big wins to keep you above water. Or you have a lot of wins and occasional big losses than bring you back down to earth (but hopefully still above breakeven). Either way, trading will not be a fun experience like you assume from guru hindsight charts. Unless you can become unemotional enough about it.
Yup. X-period MA is just nothing. Sometimes price will randomly reverse there. Sometimes it will randomly reverse Y ticks above/below it. It's just a moving average.
Why ask "what"? The guy said he has a system to sell for $8.5M; I was just asking pertinent questions. I will note that was the second time I asked how he arrived at his pricetag and it's the second time he avoided answering the question.
Most, if not all, indicators are lagging. That is why I just focus on price, it works for me but to each his own. If it works don't break it.