DislikedBk8, you mention you tested this strategy for about 6 months with the old SMA (5,3). What was your average monthly gain and maximum drawdown? This really is a simple strategy and seems too good to be true! But everyones results are really good. The new SMA(5,0) rule seems to be giving us better entries than the original rule, how did you decide on the original 5,3 shift?Ignored
Here is the story...
Long time back ..somewhere I found a system, that was using EMA (5,3) and various other indicators e.g. TDI, etc but that did not work for me, whatever the reason.
Then I was following someone's blog, who recommended BB Top line cross when candle is longer than previous candle for short, and BB bottom line for Long..
That worked once in a while but not very consistent.
So this way I end up with 2 indicators on my charts, i.e. EMA and BB.. I used to stare charts all the time.
I noticed that BB middle line cross is giving some positive results...but after some time I gave up due to inconsistency.
Then I tried EMA 5,3 alone.. same issue as BB... then just for the sake of experiment I changed to SMA without changing shift and started getting surprising results!!!
To be honest with you I kept experimenting other strategies, like others I want to make money very fast(even today) . but so far SMA is the only strategy never let down and I am consistent profitable for last 6-7 months but I can not give you exact stats in terms of percentage. e.g. I was experimenting during BREXIT and that wiped off all my profits..
I think 2 weeks back someone asked me on this thread, what shift 3 does, when I was working on example to explain - MA shift and justify why shift 3 is better,
I noticed that shift 0 is even better...than SMA 5,3 or SMA 5, -3
We did backtest too and noticed very encouraging results.. I hope I was able to explain you.