You may be very right David. Individual liquid stocks that I have don't offer good results.

Trading With Moving Averages

OK, I'm not sure how David trades, but the way I backtested is that for LONG positions I have a BUY STOP order at previous days average lows as he described. If the entry is triggered then I have a SELL STOP for closing at previous days verage ...

Trading With Moving Averages

Don't have SP data, yet. Anyway there's clearly an error in my backtesting code. Will get back when sorted out...

Trading With Moving Averages

DJI Backtesting — The only data available for the default Amibroker is DJI and a bunch of US stocks so I decided to do a quick test on DJI. The backtesting was done from January 2005 through March 2010. Position size 100% of equity - fully ...

Trading With Moving Averages

That's the result of the test, believe it or not. And I believe a computer generated test rather than an industry dogma. On the other hand, you clearly saw that there are no stop losses. And while the PF looks high the system might have a problem ...

Trading With Moving Averages

Why? Did you do the backtest yourself and got different results?

Trading With Moving Averages

What do you mean exactly? I'm looking at the EURUSD Daily chart and I see nice trends in 2010. I think there will always be trends, one way ot another. I can't see how price can make a signifcant move (and it will) without trending. Now of course ...

Trading With Moving Averages

The system rules are clear and are described here url

Trading With Moving Averages

Very very true. Hm, I keep seeing on the trend aspect...It looks like the system is betting on a pullback and resumption (entry on weakness and close when strong). Really can't see anything else. Btw, did you try testing it on stocks or stock ...

Trading With Moving Averages

Yeah, it really is showing that the only edge that comes again and again is the trend. But trading a system like that is no easy unless the trader proved the concept to himself.

Trading With Moving Averages

My personal opionion. Any edge exploits a trend one way or the other. You need direction (trend) to be on your side to have win pips > losing pips. So a profitable system rides a trend - whatever that is. This system looks like a kind of mean ...

Trading With Moving Averages

Dunn — It looks like Bill Dunn had a home run in December. It returned 10.95% resulting in a very nice 30.75% for the whole 2010. image

Trading With Moving Averages

Hi David, Thanks for the update! EURUSD trends are one of the nicest indeed, probabily the reason the profit factor decreased. But still profitable. I added the system concept to my research list, I think it can make a good base for a short term ...

Trading With Moving Averages

Going systematic — P.S. More and more I'm concluding that fully systematic trading is the way to go (for me!). I'm not talking about taking some indicators, writing an EA, testing it with the stupid MT backtester and going live. I'm talking ...

Trading With Moving Averages

David I've read a lot systematic/quantitative trading stuff lately and one thing that stood out regarding diversification is that besides assets diversification there is also systems diversification. Have a look at trend following wizards ...

Trading With Moving Averages

Hm, I thought there's always enough room for your trades to move GBPCHF looks good also, bounced of a lot of confluence (don't have a snag at hand): - BRN 1.5 - Ret 50 & 38 - Weekly SR flip at 1.51 - Trendline If today closes under 1.49 I'm ...

Strat's Long Term Stress Free Trading

Amibroker — Scotty if you need to design & test mechanical trading systems I'd recommend Amibroker. It is cheap and really does the job.

Trading Prerequisites - Doing it Right

As usual David, very good stuff. I wish you a very profitable new year! Some ideas: * Since you're looking to position on the trend direction - how about a usual trail exit (like chandelier)? Or stay in a long trade as long as each bar closes ...

Trading With Moving Averages

EURCHF Weekly — Hey stewrigh, My main SR levels are always Big Psycho Number (or Big Round Numbers), as I believe they are objective levels that big boys are watching (and using). In this instance I chose 1.35 to watch for a long trade because ...

Strat's Long Term Stress Free Trading

No, 1.35. You expecting it at 1.30?

Strat's Long Term Stress Free Trading