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IS MA CROSS OVER itself an effective trading strategy

jchan
Mar 07 2016 at 14:40
15 posts
There are people selling over USD100 for MA cross over alert.

Is MA cross over (or multi MA cross over) itself a solid trading methodology, and is it worth the money?

When such solution is used in Ninjatrader, will it becomes a scalpEA and will it likely have positive result?

But the solution provider bind the account opening with IG in order to use the autotrade function of MA cross; who is IG and if it's a safe place to open an autotrade account?

trendfollowers
Mar 07 2016 at 15:08
276 posts
IMO these kind of crossover systems are only profitable in hindsight. They are very popular and just like most EAs/indicators, promise you the world's wealth for a mere $100. I also use crossovers, but as a confirmation only. I do not put much stock in their use by themselves - there would have been many millionaires if they were really so profitable.


If you want to go fast, go alone. If you want to go far..Go together..
dkilmer (dkilmer)
Mar 08 2016 at 07:51
90 posts
there are risks to everything, and I don't think a risk in a lagging indicator is really a good idea. An average is a tool to be used simply for understanding, making a trade based on a crossover is silly and will only lead you to heart ache.

I do believe in MT4 there is a free MA Crossover strategy - its only there for illustrative purposes, but if you run it, you will notice it is not a great strategy. That is because a MA on its own is nothing. You should always trade with confluence , meaning, the MA's should be part of it, but not the only dependency on your trades

good luck

Everything in the market is like a fart, if you have to force it, it is probably shit
Megabot
Mar 08 2016 at 07:55
22 posts
There are several manual trading systems using that. I think you need more than a MA cross over for a useful system.

jchan
Mar 08 2016 at 08:27
15 posts
Thanks for your comment TF. Use it as a confirmation means you will enter or exit a position based on other signal or condition, and MAcrossover is only one of the confirmation/condition that support your decision. Is it right? But what I see from monthly chart, 9/21 MAcrosses are least frequent, then...weekly chart crosses, then daily, then 4or1 hourly, the shorter the time period the more fluctuation or double cross it happen, but with analysis or combination of all the four time frame MAcrosses, maybe we can come up with a higher probability winning entrance. I quote an example, whenever the MAcrosses happen in narrow trading...then the narrow breaks...and the upcoming cross are noticeably distanced from the prior one, at this point, this cross usually has a good or better probability, right? Is it possible to use MAcross as the key condition, and combine w/ others such as RSI, MACD, ROC, stochastics...etc.

Is it a common thing if the EA composed of 3~11 conditions/signals? and not just MAcross alone..right?

trendfollowers
Mar 08 2016 at 09:02
276 posts
@jchan . Absolutely correct. Personally I enter/exit a trade based on another indicator and use MA crossovers as a confirmation of such a move. I will rarely make such a move based only on my main indicator and never on the crossover only.

Using MA on a few timeframes to get a more accurate entry/exit, reminds me a lot of the 3 ducks system. There are many who say this is a very profitable strategy.. For those who don't know it, look it up on google.

But to continue answering your question. I am not sure of that, perhaps demo it and see if it does what you want. I believe you will have a clearer picture of your next move if you use it in conjunction with something else. As with any indicator, there are false signals - so you will get those, if you use it as your main or secondary tool in decision making.

I personally don't know of any EA that will only have a crossover system in it's logic. Usually it has a few indicators to signal a trigger.

If you want to go fast, go alone. If you want to go far..Go together..
jchan
Mar 08 2016 at 10:50
15 posts
Thanks TF, Ron and Megabot, I do learn from your advice.

flipper58
Apr 03 2016 at 06:30
16 posts
Hello again jchan, the system I referred to on the other thread that we've developed is an MA crossover system but it has many more rules than a simple cross over. I think the comments from people above are all correct, a simple cross over and no other rules will probably send you broke. Over the last 18 months we've had an EA developed for us based on our system rules purely for entries and there's around 10 different things the EA looks for before it places an entry. Good luck on your journey.

jchan
Apr 03 2016 at 10:45
15 posts
flipper58, thanks for your comment...now I've grown to understand EA crosses are only one of the signal, whether as a verification or as a part of the rules for entry or exit. Other interesting question I would like to ask is that: isn't EA are suppose to be written only when it's proven to be effective in the real market? And if the manual trading rules are effective, is the money invested in automating it as a EA justifiable? Not to mention the security of where the EA is stored and executed. Now, I have put EA as the last step of the trading journey....instead, I am trying to learn to use MT4/5 as a market tester, for certain rules/conditions, both on historic data and micro account.

flipper58
Apr 04 2016 at 06:42
16 posts
jchan posted:
 Other interesting question I would like to ask is that: isn't EA are suppose to be written only when it's proven to be effective in the real market? And if the manual trading rules are effective, is the money invested in automating it as a EA justifiable? Not to mention the security of where the EA is stored and executed.


Hi jchan, I can only comment on what we've done but we've been working on our system for over 3 years and gradually improved it over that time. 18 months ago we started automating the rules but purely for entries and not set and forget, personally I believe 100% is near on impossible or at least it has been for me. I think anyone that is considering an EA needs a system that performs in the market first, not just on demo and for at least 6 months.

We've had 9 upgrades to ours as the system has evolved and it's now working very well and exactly as our system requires it to. Is it worth the money? For me and the guy I trade with yes, we don't consider ourselves very good traders to be honest and as we trade M5 you can't stuff around or you miss the entry. The EA has no fear so for us it's become quite invaluable but we're using it for very specific reasons. I hope that answers your questions.

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