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Traveller82

Too Simple to Work? Advice Needed

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Dear All,

I am new to trading. I started studying by myself since 2010, started paper trading, lost money, gained, lost again. I learnt at my expenses how important is having a mind-set and a plan. This lesson IS really helpful also in my job as for any project I ask myself, what is the risk I am taking, the potential profit, where I will entry and exit.

But I am still making mistakes. So I back to charting, homework and now I am testing a new strategy. I found this website and simply think it is really great, especially for the expert traders that advice newbies and protect them to loose what they can not afford to loose.

 

FYI I don't want to quit my job and make a living with trading, I simply felt in love with finance and want to see if of course I can make sone extra money for saving or just spending around. I started learning using finance for metal hedging and then I decided to study technical finance by myself.

 

After trying several indicators, I went back to the base and set up this Trading System:

- Fastest SMA 3x3 (A)

- Slowest SMA 25x5 (B)

- ENTER when the A>B AND the last close > previous high (and vice versa for SHORT)

- EXIT when close < A

 

I attach a picture.

 

Please all the critiques will be highly appreciated.

 

Thank you

TS.png.94523391191dda731dcf3c7e9acf9fe1.png

Edited by Traveller82
Errata Corrige

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Thank you jpennybags. Yes it is a simple breakouts trade, maybe to simple to works but viable as you mention.

Would you recommending this path?

 

Understand... I would never tell you anything as gospel (so to speak). The best answers come from within. If you think that's a "cop out"... think again. Finding a way to deal with the market, and to draw profits from it... that's all there is. It does come from within... there is no magic answer. I do have one piece of advice... and it's only an experiment: ditch the MA's and learn to trade what you see. I think you may have the stuff to do this (be observant)... don't know... it's up to you (I think you may find the MA's worthless... ditch the short one before the long).

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Understand... I would never tell you anything as gospel (so to speak). The best answers come from within. If you think that's a "cop out"... think again. Finding a way to deal with the market, and to draw profits from it... that's all there is. It does come from within... there is no magic answer. I do have one piece of advice... and it's only an experiment: ditch the MA's and learn to trade what you see. I think you may have the stuff to do this (be observant)... don't know... it's up to you (I think you may find the MA's worthless... ditch the short one before the long).

 

Thank you jpennybags, I definitely appreciate your advice. During my too many mistakes I found out that most of time I was over-concerned about the detail of indicators and I wasn't looking at all the main thing: the price. :doh:

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Hi,

 

Price and volume are very important elements for trading any market. Pay close attention to them. They are not lagged indicators as a moving average and always deliver an important message.

 

Take care.

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Dear All,

I am new to trading. I started studying by myself since 2010, started paper trading, lost money, gained, lost again. I learnt at my expenses how important is having a mind-set and a plan. This lesson IS really helpful also in my job as for any project I ask myself, what is the risk I am taking, the potential profit, where I will entry and exit.

But I am still making mistakes. So I back to charting, homework and now I am testing a new strategy. I found this website and simply think it is really great, especially for the expert traders that advice newbies and protect them to loose what they can not afford to loose.

 

FYI I don't want to quit my job and make a living with trading, I simply felt in love with finance and want to see if of course I can make sone extra money for saving or just spending around. I started learning using finance for metal hedging and then I decided to study technical finance by myself.

 

After trying several indicators, I went back to the base and set up this Trading System:

- Fastest SMA 3x3 (A)

- Slowest SMA 25x5 (B)

- ENTER when the A>B AND the last close > previous high (and vice versa for SHORT)

- EXIT when close < A

 

I attach a picture.

 

Please all the critiques will be highly appreciated.

 

Thank you

 

Your strategy actually looks pretty good. Simple can be good. It will surely have losing periods though. How many markets are you trading it in, as maybe some diversification will help to avoid massive drawdowns?

 

I'm doing something like this myself and use currency ETFs. My account's not big enough to get into trading lots of futures contracts alongside one another and I didn't want to lose the diversification, so I opted for the ETFs (although I'm now looking at some of the e-Micro futures - anyone got any experience with these contracts?).

 

Em

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No edge here. Learn some basic programming skills, code the strategy and you will see the negative expectancy from a mile away. Make sure you have hundreds of iteractions, thousands better, before you can consider the report trustworthy.

 

You got some of the brightest minds in the business trying to squeeze profits from the markets, you can't be that naive to think a simple moving average crossover system will make you profitable.

 

If you get the right price action for it, it will look good, just like you did, but get the incorrect one, and it chops your head off and the losses wont make up for the winners.

 

Sorry but it's not that easy, you gonna have to work much harder, much much harder.

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