they are good guidlines in trending markets, but in very choppy
markets they don't work so well on the daily charts and will chop
you up. Plus like all MA cross systems, they are late to the
party, many times when they cross you are either overbought or
oversold, that's why they are best as confirmations instead of used
as entry signals and to use other analysis as your triggers for
entry/exits
Matt, that is exactly right, Just one good tool in the bag. It
is one I suggest to people who don't follow the markets as a way to
stay on the right side of the big picture. It's like playing
golf or fishing, you don't have just one club or pole. at least
that's what I tell the wife. Oh, how was shopping last night? were
you a good boy?
When the market trends it's fine, when the market chops, well it
chops you up.
You guys gotta back test
these things. 2004 was particularly bad and would have
chopped you up a lot using only that
Here's the statistics going back to 1960 if you traded the 13/34
EMA cross
Profit factor = 1.28
Percent Profitable = 32.5% winning trades, 77.5% of the trades are
losers.
13/34 ema
Posted by golfguy4 on 16th of Mar 2011 at 03:03 pm
have crossed down - I know Matt/Steve watch this one
they are good guidlines in
Posted by matt on 16th of Mar 2011 at 03:14 pm
they are good guidlines in trending markets, but in very choppy markets they don't work so well on the daily charts and will chop you up. Plus like all MA cross systems, they are late to the party, many times when they cross you are either overbought or oversold, that's why they are best as confirmations instead of used as entry signals and to use other analysis as your triggers for entry/exits
Matt, that is exactly right,
Posted by ditch on 16th of Mar 2011 at 03:20 pm
Matt, that is exactly right, Just one good tool in the bag. It is one I suggest to people who don't follow the markets as a way to stay on the right side of the big picture. It's like playing golf or fishing, you don't have just one club or pole. at least that's what I tell the wife. Oh, how was shopping last night? were you a good boy?
When the market trends it's
Posted by matt on 16th of Mar 2011 at 03:28 pm
When the market trends it's fine, when the market chops, well it chops you up. You guys gotta back test these things. 2004 was particularly bad and would have chopped you up a lot using only that
Here's the statistics going back to 1960 if you traded the 13/34 EMA cross
Profit factor = 1.28
Percent Profitable = 32.5% winning trades, 77.5% of the trades are losers.
Buy and hold, 100K turned into $1.7 Million
13/34 system, 100K turned into 255K!!
http://breakpointtrades.com/blog/search.php?search=13%2F34+&topic=All-Topics&poster=matt&startdate=&enddate=&page=1