The Importance of Simplicity II

Discussion in 'Strategy Development' started by markknight, Feb 7, 2003.

  1. I have been working on a system for a while when I noticed this one. Over the last month it has performed quite well. I was wondering if someone can backtest it to see how well it has done previously.
    1. 200 ma and 50 ma(simple)
    2. crossover either last hr of trading previous night or b4 11 us time.
    3. if crossover prior to 10.02 or night b4, then wait for the days higher high/low after 10.02 to enter.
    4. if price line hits 50ma after 10.00 but before a signal is made then no trade.
    5. 20 point stop loss
    6. exit end of day.
    It would be very interesting to see what the outome would be
  2. Looks pretty neat at first read.

    Btw, I split this to a new thread title as you see, because of the length of the previous one.

  3. What is this system for? 20 pts stop loss? That's pretty generous of you.
  4. Curious also, what time interval are these ma's for?
  5. Im new to this board, I live in UK, dont know if most people here are US,UK etc?
    20 point stop because I am looking for a long haul here, perhaps it could go to 10 point sl, would be interesting to see figures on both I suppose.
    Not sure what you mean about timeframe of ma's. I thought 50 sma and 200 sma were the time frames?
  6. You can have 50 ma on a 1 min chart and on a daily chart, the timeframes here are 1 min and 1 day.

    So what do you want to trade using this system? 20 pt stop-loss for ES is pretty big, less so for NQ, even for swing trading, I would say, at least for ES.
  7. Yeah wally is on it.

    I can't speak for the board in general, although it seems most are from the US. We do have some regular contributors from the UK.

    As wally stated, the time interval, at least as I am referrring to it, means are you using these ma's on the daily chart, the 5 minute chart, the 60 minute... etc. And of course knowing which vehicle you are looking at helps too.

  8. Of course. Last night as I was drifting off, I realised what you all meant. sorry. I trade the Dow, using a 1 minute chart. Hope this helps. Knowing whether this animal would work long term, would help me decide to keep using it or kick it into touch!!
  9. Thanks for the clarification. I don't backtest with software, so I am just a thinking participant.

    On the 20 point stoploss, I am presuming you mean exactly what you say, a fixed stoploss from the point of entry, versus a trailing stop that exits with a 20 point Dow retracement.

    If that presumption is accurate, then would you be willing to share how the results were for the following days: jan 10, 13, 16, 23, and 29? Not specifically, but relatively to the other days.

    The reason I ask is that end of day exits work great for trending days when the entry is early and near an extreme. The days I listed above were not trending days. Many of the days during January were. It doesn't matter whether they were down or up days.