A Moving Average Trading System

[Anil]

Has anyone used this trading system? What are the results?

This system is great for trend identification. However you will need to use different indicators for entry and exit.

 

[vince]

Moving averages work great in a trending market but fail miserably in a ranging market. Relying solely on moving averages as a trading system is not at all advisable nor reliable.

 

[rags]

Could one of the seniors please recommend a suitable 'technical analysis' software.

Thanking you....Rags

 

[mkshekar]

Hi gururajji. your metastock with rt data could you pl. tell me your data source etc.

 

[Commando Trader]

Moving averages work great in a trending market but fail miserably in a ranging market. Relying solely on moving averages as a trading system is not at all advisable nor reliable.

I agree with your comments in theory, I use Moving Averages to intra-day trade. What I feel is most important is the Money Management you utilize. For example, there are hundreds of indicators from moving averages to stochastics, and there are many traders who are successful. The reason they are successful isn't the indicator, it is the money management. When the entry is made, and the exact whether it is a profit or a stop. It is all about preservation of capital.

I use moving averages with a paticular pattern. When that patter happens above or below the moving average, that is when I take a position. I will also use a trailing stop to follow to capture profits. The great thing is that you can use this on an intraday level or multiple days.

Commando Trader
www.commandotrader.com

 

[gvnarendra]

I use moving averages with a paticular pattern. When that patter happens above or below the moving average, that is when I take a position. I will also use a trailing stop to follow to capture profits. The great thing is that you can use this on an intraday level or multiple days.

Commando Trader
www.commandotrader.com

Can you share your knowledge about the pattern that you trade above or below the moving average? Hope you can share your knowledge which helps the beginners like us. Thanking you.
gvnarendra
email: [email protected]

 

[Commando Trader]

Can you share your knowledge about the pattern that you trade above or below the moving average? Hope you can share your knowledge which helps the beginners like us. Thanking you.
gvnarendra
email: [email protected]

That is why I love this forum... So we can all share. What I will do is post a chart with the moving averages and the pattern I trade. When you see it, you are going to say to yourself this is way too easy. However, remember the hardest part of trading isn't the strategy, but the psychology and discipline. Psychology and Discipline are the major two pillars of trading since they work off each other.

For example, if your strategy is good and you don't have the discipline to pull the trigger, your emotional state will be hurt since you miss good trades.

I will work on the easiest way to post my trades...

I hope this will help.


Commando Trader
www.commandotrader.com

 

[Ksera]

Hi Traders edge could u help me with the color schemes..??

When i input 39, 13 and 3 for the moving averages which u talked bout..... in the Indiabulls metastock window, which color would represent which curve?

I dint understand color schemes with reference to India Bulls, could u help pl?


Thanks in Advance.

rgds

 

[Traderji]

Hi Traders edge could u help me with the color schemes..??

When i input 39, 13 and 3 for the moving averages which u talked bout..... in the Indiabulls metastock window, which color would represent which curve?

I dint understand color schemes with reference to India Bulls, could u help pl?


Thanks in Advance.

rgds

It would be best to contact India Bulls for this.

 

[karthikmarar]

Re: A Moving Average Trading System-Price line interpretation and Valid Cross Overs.

Here are the trading rules:

Simple Trading Rules

1. When the 39 MA is moving up buy when the 3 MA crosses up over the 13 MA. and/or when the 3 MA crosses above the 39 MA.. When the 13 MA crosses above the 39 MA consider adding to your long position. Exit and stand aside when the 3 crosses back below the 13 MA..

QUOTE]

Traderji

I tried the 3-13-39 system in metastock system tester for 80 actively traded scripts. The results are not very encouraging.
On analizing the results I find that many trades are missed as in many occassions the 39MA has not started moving up but 3MA has already crossed the 13 MA and rally is already in progress. The 39 MA in most cases lags. Any suggestions?

Also there were many losing trades in a sideways market. May be we can use some indicator like ADX to ensure that the market is trending. Please provide your comments.

karthik