Gentlemen,
After fooling around with Metastock, I've come up with a moving average crossover system that generates 50 to 80% lower whipsaws. I have been using this system for the past 7 months with excellent results (the big move in the stock markets this year might have something to do with it though ). The system seems to work well during back testing too.
This system uses 4 moving averages and nothing else. And it can be used not just for stocks but also for commodities & currencies. The system can be implemented with a few variations for day trading (intraday), swing trading ( 3 days to 15 days) or position trading (3 days to 3 months or more).
Based on back testing for various securities, you can expect roughly around 15 to 20% per year on turnover. That is, 1 Lot Nifty = approx 4 Lacs value = Rs. 60K to 80K profit per year (excluding brokerage).
Will explain in detail over the next few days. This is how moving averages are plotted on the chart -
post images
After fooling around with Metastock, I've come up with a moving average crossover system that generates 50 to 80% lower whipsaws. I have been using this system for the past 7 months with excellent results (the big move in the stock markets this year might have something to do with it though ). The system seems to work well during back testing too.
This system uses 4 moving averages and nothing else. And it can be used not just for stocks but also for commodities & currencies. The system can be implemented with a few variations for day trading (intraday), swing trading ( 3 days to 15 days) or position trading (3 days to 3 months or more).
Based on back testing for various securities, you can expect roughly around 15 to 20% per year on turnover. That is, 1 Lot Nifty = approx 4 Lacs value = Rs. 60K to 80K profit per year (excluding brokerage).
Will explain in detail over the next few days. This is how moving averages are plotted on the chart -
post images