I had been working on couple of systems and back testing the results... here is another such experimental system.
PLEASE DO NOT TRADE THIS SYSTEM AS THIS IS JUST FOR THE SAKE OF TESTING AND SUGGESTIONS TO MAKE IT BETTER.
What it is all about?
It is the simplest form of Moving Average system which does not look for a cross to enter the trade but compare the current bar's closing price and if the current price trade above the MA then its a Buy and if it comes below the MA then its a sell.
I have seen many MA systems and the biggest problem with them is that they are too slow in predicting the change in trend that mostly when you came to know that trend has changed its too late and you are near cost.
Basically this system is a fusion of these two previous experiments and try to compliment each other
MA System - http://www.traderji.com/options/32712-my-daily-options-trading-diary.html#post357626
Trailing Stop Loss System - http://www.traderji.com/futures/35679-nifty-technicals.html#post386706
What is the strategy?
Get out of the winning trade on a first sign of reversal in trend and stay out with the cash.
How it works?
You choose a MA period... default is 21 (my favorite Fibo level and works best on most chart periods)
You choose a Shift period.. to decide the Training Stop Loss (idea taken from Nifty Technicals System)
Buy Setup: Current bar is third consecutive bar above MA(period)
Buy Stop: Last N bar's close price
Sell Setup: Current bar is third consecutive bar above MA(period)
Sell Stop: Last N bar's close price
Back tester's Settings
Parameters
System on Daily Chart of Nifty Futures
PLEASE DO NOT TRADE THIS SYSTEM AS THIS IS JUST FOR THE SAKE OF TESTING AND SUGGESTIONS TO MAKE IT BETTER.
What it is all about?
It is the simplest form of Moving Average system which does not look for a cross to enter the trade but compare the current bar's closing price and if the current price trade above the MA then its a Buy and if it comes below the MA then its a sell.
I have seen many MA systems and the biggest problem with them is that they are too slow in predicting the change in trend that mostly when you came to know that trend has changed its too late and you are near cost.
Basically this system is a fusion of these two previous experiments and try to compliment each other
MA System - http://www.traderji.com/options/32712-my-daily-options-trading-diary.html#post357626
Trailing Stop Loss System - http://www.traderji.com/futures/35679-nifty-technicals.html#post386706
What is the strategy?
Get out of the winning trade on a first sign of reversal in trend and stay out with the cash.
How it works?
You choose a MA period... default is 21 (my favorite Fibo level and works best on most chart periods)
You choose a Shift period.. to decide the Training Stop Loss (idea taken from Nifty Technicals System)
Buy Setup: Current bar is third consecutive bar above MA(period)
Buy Stop: Last N bar's close price
Sell Setup: Current bar is third consecutive bar above MA(period)
Sell Stop: Last N bar's close price
Back tester's Settings
Parameters
System on Daily Chart of Nifty Futures
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