simple system

Discussion in 'Strategy Development' started by tentenequals20, Jan 9, 2007.

  1. I tested a simple system. if I buy on MA crossover up and sell on MA down with stoploss, system seems to make resonable $ on stocks that are largely uptrending.

    thoughts? am i thinking too simple?
  2. dozu888


    this system works great... I have been using the MA cross over for the last 3 years and have made a fortune.

    it's so easy.
  3. romik


    I use 200ma Xover on a 10 min S&P500, works well.
  4. Dazuni


    hi there,

    I am new to this site and all these trading stuff. can you explain what you mean by 200ma xover on 10 min s&P500????!??

    is ma MasterCard?

    do you mean buying 200 MasterCard share for 10 minute?
    S&P500 is top 500 company for standard and poor....

    I am just confused.

  5. romik



    200 moving average on 10 min chart of S&P500 e-mini (futures contract)
  6. wynotb1


    On average how many trades a day is that?
  7. ryank


    I just took a quick look at this, looks nice, simple and profitable if you don't get too greedy :D. Do you hold these overnight or just day trade this way?
  8. I recall testing moving average crossover systems and finding them sometimes profitable. (I do not find any system that is always profitable and never loses.) The system shows different results with different securities. You might not need a stop loss since the moving average crossover generates an exit signal if the price decreases. You might want to include slippage in your calculations.

    For all you moving average crossover fans that like eating at McDonalds I am attaching the results of a long term (about 20 years, from 12 January 1987 to 9 January 2007) moving average crossover trading system back tested with MCD stock prices. You might notice that buy and hold shows a much greater overall return but greatest draw down is almost 67 %. Sometimes I choose trading systems not so much for growth but for reducing volatility. The moving average crossover system in this case shows growth rate about 10 % and greatest draw down about 8 %. I consider those results to be pretty good because when trading a portfolio of securities the growth rate tends to increase and the greatest drawdown tends to decrease.
  9. romik


    System is simple, though not for 'dummies' if you know what I mean, you still need to understand risk/reward, risk management, position sizing, have actual trading experience, understand & be able to evaluate average daily range, key S/R areas, etc.

    Overnight yes & no trade initiation during key data release times, due to erratic price action (spikes) that most times don't mean that much, unless one is scalping.

    Sample trades from yesterday (real-time posts) here:

    EDIT: It doesn't have to be an indicator suggesting a level of entry, it just has to be a level which is relevant to others. For instance, find a major weekly support, sell potential breakdowns & buy potential breakouts, works in stocks, futures, etfs, etc.
  10. wynotb1


    What do you use for frequency?
    #10     Jan 10, 2007