simple strategy 2ma: when signal close?

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Davide Tedesco
155
Davide Tedesco  
Hi at all,

I am studying the 2ma simple strategy in detail,
to understand what it can do, how much, where and how ...
mathematically, graphically, economically ...

assuming that, at the theoretical level:
buy signal: when the smaller MA breaks bull the bigger MA;
sell signal: when the smaller MA breaks bear the bigger MA;

how much, these 2 instruments show the maximum point of the obtained movement?

Obviously, I'm talking about how the opposite signal occurs,
because, being the simple 2ma strategy, a 'slow' strategy,
in a theoretical way, how much the opposite signal occurs,
the price trend should (theoretically) return to the starting condition.

I'm looking for the theoretical, mathematical, graphical, economic signal
which determines the maximum point, or possible maximum point,
of the price trend of that signal.

Do you know that?
Do you know any good article / post / publication that talks about this?

Thanks at all
Epopt
11
Epopt  

You can also try just trading in one direction long or short and see what works best.

These strategies hardly ever work in practice. You need fastest execution unobtainable on a home based PC.

I created a slightly successful HFT algo that seemed to do a reasonable job. I'll put some more time into it and let you know.

Best moving over crosses is the ichimoku Tenkan Kijunsen cross as its not as wishy washy as a SMA. You execute about 500 trades with a 2 pip TP = 1000pips a day

Just training it to cater for stop loss and drawdown.

Let me know what you have?

Keith Watford
Moderator
17968
Keith Watford  
Davide Tedesco:
Hello everyone,

I'm studying and developing an EA that uses a 2MA strategy ...
I am still studying and developing many details of the basic framework on which this EA is based,
I also enriching the 2MA strategy with many technical details,
but there is still a lot of work to do, I know.

From time to time, I perform backtesting optimizations on some parameters, then I perform these results obtained over a period of 1 year;
with the hope that these results are so interesting,
to be able to pass my EA first in live demo, then maybe in real live,
to get something from my work, done so far,
while I continue to work on yet another new version.

Lately I've been doing the following series of tests:
certain fixed TPs and SLs (in this case, given the account with microlots, 500pips of TP - 500pips of SL => TP: SL = 1: 1),
lot size fixed at the minimum value (in this case 0.01 lots),
I set my EA in backtesting in optimization on the values ​​of the parameters of the instruments,
for a period of one month on EURUSD-H1 of the previous month (in this case 2019.06.01 - 2019.07.01),
with minimum backtesting rules: maximum 7 consecutive operations at a loss, the account must never fall to 25% of the starting value.

From the set of results obtained, I perform individual backtesting with the values ​​obtained on:
EURUSD-H4 (I have voluntarily increased the time frame),
for a period of one year (in this case 2018.01.01 - 2019.01.01).

Then I go to calculate how many pips in total my EA gets on this cross, for this period.

But this time,
there is a certain set of values, passed to the parameters of the instruments,
with which my EA has achieved the following results
(provided that I currently use the basic MT4 backtesting,
without add-ons, as I've seen that there are around to improve
the quality of the data examined), always in the same conditions and situations:
1 test - 5136 pips
2 tests - 4452 pips
3 tests - 4747 pips

As I see it, since I haven't gotten anything from all my work yet,
between studies and implementations, and since I still have a lot to study and implement, they seem to me to be very interesting results, so I'm about to pass my EA in live demo.
From the results obtained, I have to study how to set the lot size ...
but if this EA will continue to give good results as I hope ...
I will pass this EA in real live.

But I wonder, and now I ask you:
How long do I test my EA in real demo?
When is an EA strategy a truly profitable strategy?
Which pass you made?
What are your numbers / parameters / values ​​based on? And why?

And then...
When an EA strategy shows signs of loss of effectiveness
(or was it just an unlucky month)?
Currently I think, when it exceeds 7/10 consecutive operations at a loss ...
How to find a new setting?

Can you tell me something about it?
Do you know any good article / post / discussion / book that talks about this?

Thanks a lot to everyone

The above has been copied and pasted from your other topic which has now been deleted.

Do not open multiple topics with the same subject matter.

Marco Montemari
7105
Marco Montemari  
Davide Tedesco:
Hi at all,

I am studying the 2ma simple strategy in detail,
to understand what it can do, how much, where and how ...
mathematically, graphically, economically ...

assuming that, at the theoretical level:
buy signal: when the smaller MA breaks bull the bigger MA;
sell signal: when the smaller MA breaks bear the bigger MA;

how much, these 2 instruments show the maximum point of the obtained movement?

Obviously, I'm talking about how the opposite signal occurs,
because, being the simple 2ma strategy, a 'slow' strategy,
in a theoretical way, how much the opposite signal occurs,
the price trend should (theoretically) return to the starting condition.

I'm looking for the theoretical, mathematical, graphical, economic signal
which determines the maximum point, or possible maximum point,
of the price trend of that signal.

Do you know that?
Do you know any good article / post / publication that talks about this?

Thanks at all

Ciao,

simply look how to trade with MACD.
I can add my experience:  2ma are not enough. If you get a buy signal in a downtrend, I would avoid to enter buy...
Also mind:

-ma has a delay

-if you calculate ma on closing bar, it could be late overall when the last bar height is much more big than the previous ones.

-simple ma could be too much slow.


In one of my experiment I tried 2 ma with same length but with some shift...it was interesting.

I suggest to use more ma and step by step increasing the positions.

harry081986
23
harry081986  

Hello


I think 2MA nerver works bro :(

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