Over 20 years here's the back testing results. Backtesting
shows that this moving average system works better with a
confirmation candle! what I mean by that is, you need a
confirming candle to validate the cross, this filters out a lot of
the whipsaws.
see the first example as to how to use a confirmation candle
(shows a confirmation candle using 13/34)
here's two sets of statistics, 1 shows the 50/200 cross with and
without the confirming candle
Confirming candle:
Profit factor of 8 and 70% winning trades
Non comfirming
candle: Profit factor of 5.5 and 43.7% winning trades
I've found that no matter what moving average crossover you use,
the confirming candle always makes it better.
Great info on the cross. Please let us know if we get a
confirming candle as I use this crossover to dictate my long-term
investing allocation. Thanks!
Hi guys, I'll post some more info tonight when I get back (I'm
typing this from my phone), right now I'm out with wife getting
pictures taken of Oliva, she's 100 days old, which I guess in the
Chinese culture is celebrated, my wife is Chinese
50/200 EMA crossover and other crossover systems
Posted by matt on 16th of Aug 2011 at 04:31 pm
jsyabc - 50/200 EMA golden cross.
Regarding 50/200 Day EMA Crosses:
Over 20 years here's the back testing results. Backtesting shows that this moving average system works better with a confirmation candle! what I mean by that is, you need a confirming candle to validate the cross, this filters out a lot of the whipsaws.
see the first example as to how to use a confirmation candle (shows a confirmation candle using 13/34)
here's two sets of statistics, 1 shows the 50/200 cross with and without the confirming candle
Confirming candle: Profit factor of 8 and 70% winning trades
Non comfirming candle: Profit factor of 5.5 and 43.7% winning trades
I've found that no matter what moving average crossover you use, the confirming candle always makes it better.
Hi Matt, Great info on the
Posted by sethbru on 16th of Aug 2011 at 05:17 pm
Hi Matt,
Great info on the cross. Please let us know if we get a confirming candle as I use this crossover to dictate my long-term investing allocation. Thanks!
50/200 EMA crossover and other crossover systems
Posted by chetv on 16th of Aug 2011 at 04:57 pm
How do we know what a confirmation candle is. Please tell us how you define them in your strategy.
Chet
Hi guys, I'll post some
Posted by matt on 16th of Aug 2011 at 07:02 pm
Hi guys, I'll post some more info tonight when I get back (I'm typing this from my phone), right now I'm out with wife getting pictures taken of Oliva, she's 100 days old, which I guess in the Chinese culture is celebrated, my wife is Chinese
Will you post the pictures of Oliva?
Posted by bpo10 on 16th of Aug 2011 at 07:25 pm
2nd that! - The cute baby pics
Posted by cubby on 16th of Aug 2011 at 07:56 pm
Oh for sure guys I
Posted by matt on 17th of Aug 2011 at 03:13 am
Oh for sure guys I will post the pictures when we get them! they will be ready next week. Olivia is getting cuter by the day!