Which mash-ups are the best to cross? - page 6
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
namely, you filter and search for crosses of sluggish schizophrenia with rampant insanity, slightly smoothed out by relenium...
thanks for your opinion, a little more specificity would be nice.
I'd like to hear at least some rationale from someone as to why exactly the crossovers of the turkeys are so sweet...
They are sweet because they are the easiest to formalise and most visually distinguishable, and also because that's what they teach housewives in the kitchen )))
But seriously, I think the claim that the EMA is better than the SMA for example is false. Because from the point of view of intersections EMA is many times better.
In fact, I think SMA is the best indicator. Welcome to the MA sect.
Well, as ZZZER0XXX correctly pointed out, really, because it is easy to formalise. Man tries to give simple explanations for complex phenomena (this is good and saves time, but not always true, as in the case of the market).
A human being, being a supreme being on the planet (at least he thinks so about himself), having a very developed and multifunctional organ - brain, tends to look for simple solutions to whatever (this is connected, among other reasons (such as time saving) with high power consumption of brain activity: thus, small children consume up to 80% of total body energy, and adults - up to 60%). That is why people try not to strain their brains too much without an urgent need for it. :)
An "absolute market" - the price changes continuously, "analogically". Participants of such a market, having entered it, are like trimmers (when profit is reached, heat is emitted into the trader's body - he/she can take all necessary heat, the excess heat can always be removed, while on a loss the heat is taken away, but not without limits - there is a limit, at which the trader goes limp, or fakes his/her feet), which also slowly, following the price, changes the volume of its trading position. In such a market, obviously, it would be ridiculous to use indicator crossovers as an entry/exit. :)
On the real market, a trader can only strive for "absolute behavior on the absolute market". And following indicator crossovers is the most primitive (of all there can be) market behaviour.
PS A little tale is a lie, but there is a hint in it...
Speaking of man as a highly evolved being, after all he invented it - the price chart - but is unable to unravel it, only comes close to unraveling it for the most part. Self-deception ))). To unravel in this case is to sell on the high to buy on the low.
Yes, crossing is the most primitive, but that doesn't mean it's worse than other behaviours. There are more sophisticated methods, but they are not more effective than waving. Man has a need to complicate things, probably so he proves his superiority to himself ;). I believe there are not many market behaviour variants that do not lead to a loss.) Give me the whole list ))))
There you go....During psychoanalysis, human physiology and the complexity of thought processes.
There is nothing scary or primitive about using intersections.
The intersection of two lines is just the arithmetic condition A-B=0.
Who does not use such conditions? Yes, everywhere and almost everyone.
What confuses the topicstarter in intersections?
The infamous "flutter"? I have already said that this phenomenon is surmountable, well, with some costs. Or something else?
What is it?
If we switch from the language of feelings and images to mathematical language, we can talk about the similarity of the properties of the intersection of the two MoUs and the first derivative of one of them. It can be strictly shown that in the limit, when the periods of the used muwings tend to the same value, their intersection is proportional to the derivative of the muw.
It is clear that in such a perverted but illustrative way we are trying to exploit the main property of a smooth curve - it is more likely to continue moving in the chosen direction. It allows combining the whole class of trend-following TS of all possible algorithms based on intersection of MAHs. One problem... it all doesn't work! Why? Well, because using moving averages with significantly different parameters for analysis, we, in fact, move away from the ideal derivative and simultaneously increase the number of fitting parameters. Leaving to the side itself leads to the decrease of the system ultimate efficiency (if it exists of course), but the increase of degrees of freedom (fitting parameters) creates an illusion of profitability of the TS in the testing area, and the failure is inevitable as soon as such a scheme is applied to the BP area that hasn't participated in training. Hence, all our problems occurring when we try to work on the intersection of MAs.
Moreover, the selected class of TSs is trend following and is absolutely useless for market instruments. A lot of definitions of BP trending can be given, but the most understandable is the following one: the sum of pair products of neighboring increments for a trend section must be greater than zero. Simply put, there must be a predominance of one candle colour. For market BPs on large samples, we can confidently say the opposite, i.e. the sum is usually negative and the flat is dominating. But it dominates very insignificantly, exactly as much as the spread is covered with a reserve :-)
The conclusion is the only one: it is possible to earn on MA MA crossings, but by accident.