I have actually played alot with it today and I came back with something very good , I have actually changed it back to SMA and used 20 and 200 and changed the Time frame to 60 min and used it on ES , and I got something pretty neat , well I wish I could make it better by improving the exits , but it gave me 75% profits !!
I have attached the screenshot ,
I will give it a try for sure !
I have worked a lot with MA crossovers. There are two issues to resolve when picking or designing an MA Lag, the delay in the reversing of the MA following a reversal in price and Noise reduction or smoothness, removing the little reversals to show the overall trend. SMA is very smooth but you pay the price in lag. HMA has far less lag but will give you more noise which translates to bad crosses.
Try looking at the Linear Regression. Sharkey has one that paints the up, down and flat trends.
The following user says Thank You to RBSailing for this post:
Thank you very much for your response , I am not looking at strategies anymore , especially the MA crossover as I have read that they do more harm than good , trading crossovers need to be confirmed by price action , so learning price action is what I am focusing on these days .
"Risk more than others think safe.
Dream more than others think practical.
Expect more than others think possible.
Care more than others think wise"
Don't give up on crossovers so fast. I have looked at an awful lot of indicators and ideas, all seem to have their faults.
When you talk about price action I believe that a responsive smooth ( usually mutually exclusive terms) MA is showing you price action without the noise. Yes confirmation is always a good idea. But keep in mind we are trying to determine random behavior based on past patterns.
I looking more at managing the trade to get out sooner if it goes wrong rather than tryiing to filter out all the incorrect entries.
Good luck with your trading