Hi Ken,
Yes, you are correct, it is faster. I had to really do some thinking (And still am partly) about the length of the 3rd MA.
My thinking on the 20 period MA: Faster signal,which possibly could result in more profit, but also prone to more whipsaws, which wouldnt do much good for my account. I dont deal well with losing trades. I kinda created this system to really fit my personality, hence the initial stop,(Very small loss if hit,eases fear of entry). Went with the 50(Undecided whether i should use 50 or 40,but sticking with 50 for now). My thinking for going with the 50 is, the trend is more definate/stronger(if anything in trading could be called definate)so i have less chance percentage wise of being wrong,and thus incurring a losing trade. With a nice stable of stocks, i felt/feel i can afford to give up a few points,(Dollars) by entering the trade at a later point in return for higher percentage of winning trades. For myself, and my trading inventory , its a win/win.
Which brings me to this. (I write this for everyone) I think a BTT-MAX type system using MA's, OBV, or whatever indicator you prefer to use, is potentially profitable as long as you design it to fit yourself. I hate losing money, so i use stops, ALWAYS. i like to trade with the dominate trend, so i use a longer period 3rd MA. I hate leaving money on the table, to i use a tight trailing stop off lows or highs. i want to be still doing this in 10 years, so i am treating this as a business. I have gotten ALOT of PM's about this "method". Its not a holy grail, in fact its stupidly simple. I got over 5Grand in trading books over 10 years,(Love to read about trading)and i end up with a simple MA trend following system. Know thyself, and then build your system around yourself.
Regards, and sorry for ranting,
Knyyt |
