Using a fast MA with a whippy stock is not necessarily the best
idea. You can just get whipped more. Sometimes an SMA is better
because it smooths out the price action.
This is why exotic MAs like the Hull, Kalman, Jurik etc don't
necessarily make better systems on their own. A plain Kalman
crossing system will get whipped six ways to sunday. You have to
combine them with something that reduces whipsaws like a hysteresis
channel or a trend filter.
When I was using plain MA crossings I often found the SMA gave
better results.
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Using a fast MA with
SKF system
Posted by unsane on 12th of Feb 2009 at 08:17 am
Using a fast MA with a whippy stock is not necessarily the best idea. You can just get whipped more. Sometimes an SMA is better because it smooths out the price action.
This is why exotic MAs like the Hull, Kalman, Jurik etc don't necessarily make better systems on their own. A plain Kalman crossing system will get whipped six ways to sunday. You have to combine them with something that reduces whipsaws like a hysteresis channel or a trend filter.
When I was using plain MA crossings I often found the SMA gave better results.