A simple thought just ran through my head. Why do people trading MA cross systems trade at the cross? To me I would think trading at the cross would be the absolute worst time to trade. That moment represents an indecisiveness, and possible shift in direction.
It doesn't make sense to me that the only time to trade is at the cross too. What about all the pips in the middle? Those are the pips we want. I would propose the best way to play MA's would be to enter a trade only after a cross has been made something like 5-10 bars back and the change in MA positions has still held.
The difficulty would be in determining the exit since we can not accurately predict the end of the run simply on MA. I would think tying in MACD calculations to it might help a little.
Again, this was just a simple thought that ran through my head while sitting here at work. Has anyone traded an MA system that was based on this idea of waiting for the cross to hold for several bars? Did the success rate change at all?
TIA. Matt
It doesn't make sense to me that the only time to trade is at the cross too. What about all the pips in the middle? Those are the pips we want. I would propose the best way to play MA's would be to enter a trade only after a cross has been made something like 5-10 bars back and the change in MA positions has still held.
The difficulty would be in determining the exit since we can not accurately predict the end of the run simply on MA. I would think tying in MACD calculations to it might help a little.
Again, this was just a simple thought that ran through my head while sitting here at work. Has anyone traded an MA system that was based on this idea of waiting for the cross to hold for several bars? Did the success rate change at all?
TIA. Matt