Why do moving averages SUCK so much?

Discussion in 'Technical Analysis' started by Saltynuts, Feb 21, 2021.

  1. .sigma

    .sigma

    “I have probably made a good discretionary call four times in the last 15 years, which isn't enough times to prove anything” @globalarbtrader

    profound statement. But why don’t I believe you? Lol, only 4?? Modest man!
     
    #111     Mar 5, 2021
  2. %%
    That can be a good thing;
    + good thing more make it in ttrading/investing than the NBA. LOL on the decimal ma\:D:D:D:D:D,:D:D:D
     
    #112     Mar 5, 2021
    vanzandt likes this.
  3. easymon1

    easymon1

    #113     Apr 26, 2021
  4. .sigma

    .sigma

    Moving averages are absolutely necessary for any trader. At least a quick glance of its position relative to spot couldn’t hurt.

    I’ll say this though, if you’re trying to predict movement of price via MA cross overs you’re lacking in understanding of MA’s, and going with what the industry pushes on the populace. Think outside the monkey brain and you’ll find more clever ways to view/use price averages
     
    #114     Apr 26, 2021
  5. Bad_Badness

    Bad_Badness

    Don't confuse a mathematical representation with your interpretation of it. Both are revisable. This is one of the oldest known distinctions. We are talking BC, 2200+ years.

    Probably time to learn and apply it, unless you think you are so exceptional the fundamentals don't apply to you. Only an ego tripper or the ignorant thinks their interpretation cannot be wrong and the mathematical one is.

    The latter is easier to fix than the former. :)
     
    #115     Apr 26, 2021
    .sigma likes this.
  6. panzerman

    panzerman

    Pattern trading is just an example of pareidolia. Name me one pattern that you personally have backtested and proved to be positive expectancy. Name any pattern that anyone else has proven to be positive expectancy.

    The one exception might be Jim Simmons. Since we don't know the details of his method(s), who can say for sure?
     
    #116     Apr 26, 2021
    .sigma and murray t turtle like this.
  7. The patterns I use are nothing to do with triangles and the usual garbage. If something worked, it wouldn't be common knowledge.

    Again, you can look up any of the trades I made in that spreadsheet as called in real time referring to the post # in each row for entry and exit.
     
    #117     Apr 26, 2021
    .sigma likes this.
  8. KCalhoun

    KCalhoun

    dudes read my epic new article p6 this months TASC for my take on 50/200 sma channel trading the right way
     
    #118     Apr 26, 2021
    murray t turtle likes this.
  9. -

    Related to Ken's post #118 and his new article, Perry Kaufman (author of the tome "Trading Systems and Methods") published a study of moving average systems in the May issue of Technical Analysis of Stocks and Commodities.

    The rules were to simply go long when the slope of a MA turned up and to exit the trade when the slope turned down (a long only system). He used relatively long-term moving averages (70 and 110 day) and different specific entry techniques to test the period from 2000 to 2020 in 3 markets - emini S&P, Eurodollar and Euro Stoxx.

    Interestingly, he got strong results in ES and ED, consistently generating profit factors above 3.0 (a really good number) and reasonable MaxDDs.

    There are caveats because many system performance metrics were not shown, but it's nice to see evidence that simple MA systems can produce such good results... especially in backtests performed by someone with a lot of experience in doing them correctly.

    The article is posted at the TASC homepage at http://traders.com/
    (might need to be a subscriber for access)
     
    #119     Apr 28, 2021
    Poljot likes this.
  10. %%
    EASY to name 2;
    i'll name one/buy 200dma/SPY...........................................................[EDIT not saying its the best/that another thread + subject to change/LOL:D:D]
     
    #120     Apr 29, 2021