The Importance of Simplicity

And many using ma crossover systems exit completely out of the market whenever dd goes above 70

 

dd=drawdown

 

My BB setting is 2.618 and 13 length.
The moving average crosses on a 3 minute chart work the best of all time frames for interday. MAs 5, 15 and add a 65 for general trend.

I trade ES.

This also works well on a daily chart for those who do not like to trade a lot.

 

I neglected to mention that the 10/40 MA crossover is on a 5 minute chart. It won't wipe out your account (via drawdown) if you have about $15,000 per contract on the ES.

 

My approach to ES is about as simple as it gets.

Using 15 min bars. after the first 1/2 hour, if it's going out of the top of the bars before go long, if the bottom go short. Run a trailing stop. Turnarounds in trend later in the day are pretty obvious too. I might not pick up the 'best' moment to buy/sell, but usually being in the right direction makes for pretty consistent profits. 30 min bars confirm it too.

Exits, sometimes a support/resistance line crossover, sometimes a 9 or 18 SMA on a 5 min chart, sometimes even just the bars themselves failing and reversing. Not exactly rocket science, but it works well enough. (yeah! tried all the rocket stuff and just ended up confused...)

Fast moving markets I reduce the size to 10 or 5 and do the same. Slow sideways days are days off doing something else...

Natalie

 

All of my testing and analysis suggests that ma x over systems are sketchy at best with a low average trade. Anyone have any system reports?

 

And where is your stop-loss to begin with?

Thanks,
wally_

 

Stops are determined before the trade accordingly for the general volatility of the market. More volatile, longer stop to prevent getting stopped out of good positions. Again, not rocket science.

Natalie

 

Yeah, that's pretty good. I can see why you talk about it. That system can always use friends. I think you need to hang on a while on occasion outside the bands though to pay for all the whipsaw. Good Luck

 

My experience of MA Xover systems hasn't been good at all.
All I've ever got out them is grief. They got me in much too late, got me out much too late, choped me to hell in the sideways stuff and more often than not left me buying when I should have been selling etc. needed constant optimisation for changing conditions and were generally very unreliable. So I ditched using them in that way pretty quickly.

Natalie