V.11:6 (257-260): Trade With Moving Averages by Colin Alexander

V.11:6 (257-260): Trade With Moving Averages by Colin Alexander
Item# \V11\C06\TRADEWI.PDF
Availability: In Stock

Product Description

Trade With Moving Averages by Colin Alexander

Behold the moving average. Everyone takes it for granted without really thinking about it. But Colin Alexander, publisher of the Wellspring newsletter and hotline, thinks we should take a closer look.

Moving averages are perhaps the single most widely used indicator in trading the futures markets. In hindsight, trading a market in the direction of price crossing a moving average can look very profitable. After all, every good trade will have crossed a moving average at some point and a few actually become big money-makers.


But a moving average crossover is no more likely to deliver a profitable trade than every yellow flower is likely to be a daffodil. Most uses of moving averages involve crossovers for entry and exit, usually with a reversal from long to short, or vice versa, on the exit. But studies of the history of such crossovers tend to show optimization that may not apply in future. Recently, I studied the use of a moving average crossover method. One hundred signals to enter and reverse on the next crossover were identified. The sample involved 17 markets, including agriculturals, metals, petroleum and financials. A trade closed out at or near breakeven was assumed to be a loss due to commissions and slippage. The results of this sample of 100 crossovers show 75 losses and just 25 profits. Soybean contracts had the best results with three profits and two losses. The worst results, in live hog contracts, were 10 losses out of 10 trades.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order