EMA crossover (ema 14 & 34) 4 replies
Systems, Systems and Systems... 1 reply
EMA Crossover Systems 1 reply
Dislikedas a long time student of MA and studied MA under a master who has been using it for 30+ years...
All I will say is that MA are only good for 1 thing. They tell you the trend. In fact it is probably the most reliable indicator to tell you of the trend. Simple and elegant. If your MA is crossing over to bull side, your bias is long. If your MA crosses to the bear side, your bias is short.
That is all the MA cross is good for.Ignored
Dislikedman,thats martingale!!!! Though im amazed by the very little drawdown.
Drawdowns of upto 50% are perfectly normal for trend trading,but how many folks can live through that.
also that graph is too good, id be really worriedIgnored
Dislikedand why is that statement wrong? i cant see my faults please help and enlighten meIgnored
DislikedMoney management cannot create positive expectancy. Positive expectancy is created by exploiting a market inefficiency.
Money management however can increase the positive expectancy of a system. But the prerequisite is that the system ALREADY has a positive expectancy without advanced money management rules.Ignored
Dislikedok, i know what you mean. thanks
personal, money management is for me a combination of:
- risk control (do not overtrade, be always in shape with your current&available balance)
- order control (time when you trade)
- position size control (depending on the available, current free balance)
because all points resulting in increased or decreased balance (money)
the target of money management is to catch steady and save profits without putting your balance in high danger szenarios - because each "system" starts with a coin flip
Dislikedgood post. I agree with all your points, except the last one. In that case you are thinking too one-dimensional.
Positive expectancy is a function of the win/loss ratio AND the risk-reward ratio. There are good systems that have a worse win/loss ratio than a simple coin flip, but the risk-reward on the winning trades is so high, that it is profitable over the long-term.
And this goes also into the other direction. There are systems with a higher win-loss ratio than a coin flip, but normally have a lower risk-reward. Now again here we have to look...Ignored
DislikedExactly why forums get bad reviews. The system does work and extremely well. I trade it for a living with no problems. Not one indicator.
Select your time frame, pair(s), money management, broker, trading platform, trade the London Market from 4 am till 12 noon est. Take no longs below the slow ema, no shorts above slow ema. Do not trade when fast ema is trading very contrary to slow ema even if it's in the same zone. Somewhat is acceptable. Stop trading when slow ema is flat to avoid congestion. Entry when price crosses closed fast ema. Exit...Ignored
DislikedThats not a cross though, your using the MA's as S/R and for direction rather than just MA1 crosses MA2.
I do much the same, bigger SL's, 5M setup your right on the time zone to play it, then again if you want for the US Session.Ignored
DislikedMy bad. I start to trade a trend when my fast ema crosses closed past my slow ema as long as the slow ema isn't flat. I use several methods for exits. Sell half and let it run, let it run as long as the fast ema isn't crossed again, get out with 20-40 pips and look for pullbacks to the fast ema line. The manner of the price fall or rise determines my exit strategy.
There are some down days. Usually down 10-20 pips. That's why I trade all the hours 5 days a week and bank the excess over my needs. Mondays and Fridays are a little slower but still...Ignored
Dislikedi have read the thread one thing seems to missing is no body mentioned how far the stop should go can somebody please explain thanks in advanceIgnored
DislikedWhat TF and MA settings do you use ??
My previous it was so good cheat after 6months stopped working recently, how long have you been using your method ?? it's all I can see working recently under the current fast trend conditions.
Answer in my journal if you want!!
Dislikedwell regardless of backtesting I can see it works in some way along with price action which is good. Also, a large portion of amatuers use it so it increases the probabilty of our trades working out using this than not using it.Ignored
DislikedI did a backtest with all posible ma cross combinations and non of them were profitable in the long run, additional discretionary logic is needed to filter the wrong trades or analyze the entry/exit point.Ignored
DislikedIt should be easy to find an ema line combo that works well. Lower time frames seem to work better than higher ones. There is much written on this trading method on the net. A 5/8 is too fast for my liking. 5/15 10/30 is more my style, room to breathe.Ignored