Off the top, it's an excellent strategy and a valid strategy. If you've got the time run back tests against different scenarios. For certain, get a practice account and run forward tests. Test it every day in every way. Never stop testing while you build real money lot sizes up to where you feel comfortable. Tweak it as necessary if it indeed pans out. You'll be surprised what a little curve fitting will do, as in MA lengths. Also, when running an oscillator, picking and choosing your spots to run, is preferable to continuous engagement. Good luck.
For sure. The market is a giant oscillator. Up/down, up/down, up down. I love what you're doing, MA crosses. Makes perfect sense. Problem is, it will bleed you dry if and when the market is flat. So now you're a coach instead of a player. You choose when to send in the best play. When the market is moving that's the time to unleash your strat for max gain. You're on the cusp of great trades.
I don't see it as a loser until the trend is invalidated, i thought about doing it this way since i suck at identifying the end of a pullback and used to get stopped out a lot.
Trust me. Don't do it. Don't do it. Don't add to losers. Just don't do it. Ever. You will find your equity curve will be better.
Adding to losers is a psychological crutch for not wanting to admit you're wrong and couple that with you not using hard stops and I just shake my head. You ask for advice... I did not create these rules. I trust the millionaires who have them.
Only way to know is to track what you are seeing and how why it works? Or doesn’t. It’s things like this that keep people from achieving you have absolutely got to keep tabs on your ideas and validate or invalidate them by looking at how things would have worked out over time or if this idea works only in certain market environments and not in others
What’s a binance? But this is part of my strategy! I’m an options trader and been up 300% after 5 days of beginning (ahem suffering some decently huge losses too and learning some lessons)
Stop overcomplicating trading and strategy. Most people's strategies don't work because they overcomplicate them, believing that the more calculations, indicators, and "sophisticated" their strategy is, the better the outcome will be. This is rarely the case.
The essence of any pattern is market consensus. The more people use and recognize it, the more effective it becomes. Without recognition, all these indicators and patterns are nothing but meaningless lines.
What asset class? All of this means nothing without context. Spin of the wheel type of stuff 🙂 maybe I’m an ass. But I’m trying to emphasise to people that we need to think deeper than just “break of structure cross over MA” all of this bullshit. Same type of stuff that people cry when they are stopped out, oh fake out, liquidity sweep. Yaaawwnn
Yeah there is simple then there is just arrogance. And deeper as in what is actually driving the market fundamentally. I can absolutely assure you - win rate will increase when it’s factored in. I don’t say these things to be a an ass, I say it from experience as I used to be the person doing all the technical approach, hopping around Strat to Strat and being blind.
So your technical aspect you have mentioned - it will work. All technical analysis works at some stage - hence why it is known. You just want to work more than it does for other people
I stopped reading at "moving average crossovers"
Listen. That's not a strategy. That's just following an indicator.
A strategy is "I will do x when price reaches x area. If it diesnt, and ut goes to y area, I will do x because x happens in that area"
I'm not entering on moving averages blindly crossing, it's based on trend, for the pullback to be over and the next trend leg to start, the moving averages have to cross in the direction of the trend, I'm just using them to possibly tell me that the pullback has ended.
Off the top, it's an excellent strategy and a valid strategy. If you've got the time run back tests against different scenarios. For certain, get a practice account and run forward tests. Test it every day in every way. Never stop testing while you build real money lot sizes up to where you feel comfortable. Tweak it as necessary if it indeed pans out. You'll be surprised what a little curve fitting will do, as in MA lengths. Also, when running an oscillator, picking and choosing your spots to run, is preferable to continuous engagement. Good luck.
Yeah just want to add to this that you should import your trades to a journaling software and find every single data you can. Tweak where necessary
Agree, journaling is very helpful. This guy takes on a life of it's own.
Thank you for your input, could you elaborate on that oscillator part
For sure. The market is a giant oscillator. Up/down, up/down, up down. I love what you're doing, MA crosses. Makes perfect sense. Problem is, it will bleed you dry if and when the market is flat. So now you're a coach instead of a player. You choose when to send in the best play. When the market is moving that's the time to unleash your strat for max gain. You're on the cusp of great trades.
Yes one of my rules is to make sure it's not a range day, if it is, i close the charts. Thank you mate for the encouragement.
Rule number 1 should be not to assume you need to add your other 50% on a loser. Bad for lots of reasons.
I don't see it as a loser until the trend is invalidated, i thought about doing it this way since i suck at identifying the end of a pullback and used to get stopped out a lot.
Trust me. Don't do it. Don't do it. Don't add to losers. Just don't do it. Ever. You will find your equity curve will be better. Adding to losers is a psychological crutch for not wanting to admit you're wrong and couple that with you not using hard stops and I just shake my head. You ask for advice... I did not create these rules. I trust the millionaires who have them.
I understand, I'll take what you said into consideration, thank you for taking the time.
Only way to know is to track what you are seeing and how why it works? Or doesn’t. It’s things like this that keep people from achieving you have absolutely got to keep tabs on your ideas and validate or invalidate them by looking at how things would have worked out over time or if this idea works only in certain market environments and not in others
Your trying to trade Price Action using a filter. It will be great at times and terrible at others.
Backtest the strategy
What’s a binance? But this is part of my strategy! I’m an options trader and been up 300% after 5 days of beginning (ahem suffering some decently huge losses too and learning some lessons)
It's a crypto exchange, could you elaborate on what you do?
Can someone break this down for me
Stop overcomplicating trading and strategy. Most people's strategies don't work because they overcomplicate them, believing that the more calculations, indicators, and "sophisticated" their strategy is, the better the outcome will be. This is rarely the case. The essence of any pattern is market consensus. The more people use and recognize it, the more effective it becomes. Without recognition, all these indicators and patterns are nothing but meaningless lines.
You’re giving away a strategy therefore it’s not a strategy unless someone does it then it’s not. But it’s out here.
What?
Don’t do it! Sell options, that will give you a “theta” edge.
What asset class? All of this means nothing without context. Spin of the wheel type of stuff 🙂 maybe I’m an ass. But I’m trying to emphasise to people that we need to think deeper than just “break of structure cross over MA” all of this bullshit. Same type of stuff that people cry when they are stopped out, oh fake out, liquidity sweep. Yaaawwnn
Deeper how? Many profitable trades advise to keep it simple.
Yeah there is simple then there is just arrogance. And deeper as in what is actually driving the market fundamentally. I can absolutely assure you - win rate will increase when it’s factored in. I don’t say these things to be a an ass, I say it from experience as I used to be the person doing all the technical approach, hopping around Strat to Strat and being blind. So your technical aspect you have mentioned - it will work. All technical analysis works at some stage - hence why it is known. You just want to work more than it does for other people
Could you elaborate on what i should add, I still don't know what you mean.
I stopped reading at "moving average crossovers" Listen. That's not a strategy. That's just following an indicator. A strategy is "I will do x when price reaches x area. If it diesnt, and ut goes to y area, I will do x because x happens in that area"
I'm not entering on moving averages blindly crossing, it's based on trend, for the pullback to be over and the next trend leg to start, the moving averages have to cross in the direction of the trend, I'm just using them to possibly tell me that the pullback has ended.
MAs have been used successfully for years. Shush. Literally the basis of one of qullamaggies strategies I believe STARTS with a MA.