MA cross EA ideas

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I’ve been working on an MA cross EA. Fast SMA X slow EMA with trend WMA to dictate the direction of trade. It’s works, but DD is large and there a many bad trades. 
Has anyone got any experience with MA cross? What else have you had success with to help filter the bad trades? 
 

I like to use the difference between MAs rather than MA itself. Mainly because I can see its momentum and enter/exit a trade quicker

 
Zedodia:
I’ve been working on an MA cross EA. Fast SMA X slow EMA with trend WMA to dictate the direction of trade. It’s works, but DD is large and there a many bad trades. 
Has anyone got any experience with MA cross? What else have you had success with to help filter the bad trades? 

Hi,

That method has been tried for decades.
the result is good if the market rallies,
and the result is bad if the market is sideways.

So, you just need to add a method to get signs of when the market will rally :)
e.g confirming breakout, etc.

Good luck

 

This is always the problem with moving averages with the whipsaws killing all the profits made on the trades.  I am convinced that no robot solves this problem but there are lots of ways to address this whole issue.

The previous comment was generally raising the issue of a FILTER that would try to limit the trades to the direction of the most momentum and and less to the just the mechanical opposite of the first trade.  Using a third MA is one approach, so that only trades taken in the direction of the longest trend is made but the stop loss is the initial cross of the first two MAs.  Some people try four MAs, etc.

There are also other more responsive types of moving averages: Hull Moving Average and Laguerre Moving averages are my favorite. There are many others. If you want you wan also try using the Bollinger Bands with the MA in the center and use a small deviation such as 0.2 and treat it as a dead band to avoid immediately reversing a trade when the MA cross takes place.

Ultimately I have not found any robot using MAs that does the job.  I suggest you get all the free MA EAs and Indicators and test them out on DEMO account charts to see how they work for you.

This is a long process to get to a moving average system that you can successfully use and it depends in the end on what kind of trader you are and how disciplined you are with your system.

There is also another whole approach using Renko charts, which addresses the issue of the momentum of prices to trend up or down by using price action and not time.  In effect, it is looking at the same issue as a moving averages but with an out of the box solution to the problem.

 
Zedodia:
I’ve been working on an MA cross EA. Fast SMA X slow EMA with trend WMA to dictate the direction of trade. It’s works, but DD is large and there a many bad trades. 
Has anyone got any experience with MA cross? What else have you had success with to help filter the bad trades? 

Calculate volatility, before entering trades.

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