Gentlemen,
After fooling around with Metastock, I've come up with a moving average crossover system that generates 50 to 80% lower whipsaws. I have been using this system for the past 7 months with excellent results (the big move in the stock markets this year might have something to do with it though :cool: ). The system seems to work well during back testing too.
This system uses 4 moving averages and nothing else. And it can be used not just for stocks but also for commodities & currencies. The system can be implemented with a few variations for day trading (intraday), swing trading ( 3 days to 15 days) or position trading (3 days to 3 months or more).
Based on back testing for various securities, you can expect roughly around 15 to 20% per year on turnover. That is, 1 Lot Nifty = approx 4 Lacs value = Rs. 60K to 80K profit per year (excluding brokerage).
Will explain in detail over the next few days. This is how moving averages are plotted on the chart -
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post images
After fooling around with Metastock, I've come up with a moving average crossover system that generates 50 to 80% lower whipsaws. I have been using this system for the past 7 months with excellent results (the big move in the stock markets this year might have something to do with it though :cool: ). The system seems to work well during back testing too.
This system uses 4 moving averages and nothing else. And it can be used not just for stocks but also for commodities & currencies. The system can be implemented with a few variations for day trading (intraday), swing trading ( 3 days to 15 days) or position trading (3 days to 3 months or more).
Based on back testing for various securities, you can expect roughly around 15 to 20% per year on turnover. That is, 1 Lot Nifty = approx 4 Lacs value = Rs. 60K to 80K profit per year (excluding brokerage).
Will explain in detail over the next few days. This is how moving averages are plotted on the chart -
post images