Stocks & Commodities V. 25:10 (50): Q&A by Don Bright
Product Description
Q&A by Don Bright
IMPROVING A TRADING SYSTEM
Don, what you think about a simple system like a moving average crossover system? I’ve played with different combinations (50/200, 30/100, and so on) in different markets (NASDAQ, Standard & Poor’s 500, and others) with equities only. I got very good results with 30/100 in NASDAQ with money management, investing about 3% per trade. My profitable trades are somewhere between 40% and 50%. What you think about the system, and how do you think I should improve the trading system with additional indicators? Thanks. — Sudhir Cheda
Moving average trading systems are one of the oldest and most basic still being used today. But looking for return on investment is one thing, actively trading is another. Since many fund managers utilize moving average and moving average convergence/divergence (MACD) techniques and generally return about the same long-term return as the overall market (actually, most underperform the S&P 500), would have to say that relying on this type of system alone would not be the best way to extract money from the market.
IMPROVING A TRADING SYSTEM
Don, what you think about a simple system like a moving average crossover system? I’ve played with different combinations (50/200, 30/100, and so on) in different markets (NASDAQ, Standard & Poor’s 500, and others) with equities only. I got very good results with 30/100 in NASDAQ with money management, investing about 3% per trade. My profitable trades are somewhere between 40% and 50%. What you think about the system, and how do you think I should improve the trading system with additional indicators? Thanks. — Sudhir Cheda
Moving average trading systems are one of the oldest and most basic still being used today. But looking for return on investment is one thing, actively trading is another. Since many fund managers utilize moving average and moving average convergence/divergence (MACD) techniques and generally return about the same long-term return as the overall market (actually, most underperform the S&P 500), would have to say that relying on this type of system alone would not be the best way to extract money from the market.
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