Secret #2: Transferring Common Crossover Works Finest When You Commerce Many Totally different Markets
A shifting common crossover works greatest throughout trending intervals, so that you commerce extra markets to seize extra traits, which is able to make you more cash.
Now earlier than I transfer on…
Many merchants make a giant mistake as a result of they focus loads on the parameter.
For instance, if the 50 MA and 200 MA don’t work…
They’ll change the 50 MA to 35 and alter the 200 MA to 189 MA.
Right here’s the factor…
For those who preserve adjusting the parameters to make the technique work, what you’re doing is what we name “curve becoming.”
It’s like attempting to memorize the query and solutions from final 12 months’s examination papers!
However what occurs once you take that very same examination this 12 months?
Would the solutions that you just memorized make it easier to?
Since you may be rattling positive that the questions on that examination this 12 months are totally different!
So, you see, when the questions change slightly, you don’t know methods to reply them.
It’s the identical for curve becoming in buying and selling.
Let’s say you don’t memorize the reply from final 12 months’s examination paper.
As a substitute, you attempt to perceive the idea behind these questions.
So once you take the examination paper this 12 months, irrespective of how a lot they twist and switch the query, in case you perceive the idea…
You may be rattling positive that you just’ll be capable to reply it.
This leads me to my subsequent secret.
Secret #3: Concentrate on The Idea, Not the Parameters
When your buying and selling technique is just not working, cease fine-tuning the parameters; deal with the idea.
Let me show this to you proper now.
As a substitute of going with the 50 MA and 200 MA, let’s say we go along with the 17MA and 189 MA.
- Go lengthy when the 17 MA crosses above the 189 MA
- Go brief when the 17 MA crosses beneath the 189 MA
- 3 ATR trailing cease loss
- 1% threat
The markets we’ll commerce are nonetheless the identical.
- Gold, Copper, Silver, Palladium, Platinum
- S&P 500, EURJPY, EURUSD, USDMXN, GBPUSD
- US T-Bond, Euro Bobl, Euro Buxl, Euro BTP, 10-Yr Canadian Bond
- Heating Oil, Wheat, Corn, Lumber, Sugar
Lastly, the outcomes.
The outcomes (20 markets)
- Variety of trades: 3,801
- Successful charge: 39.46%
- Annual return: 12.91%
You possibly can change the parameters to any method you want.
However in case you acquired the idea proper, likelihood is your buying and selling technique will nonetheless earn money.
However in case you get the idea incorrect, then you already know it’s powerful luck
Once more, we use the identical parameters utilizing the 17 MA and 189 MA, however we commerce three markets this time.
What do the outcomes seem like?
The outcomes (3 markets)
- Variety of trades: 580
- Successful charge: 40.00%
- Annual return: 1.33%%
Are you able to see the purpose that I’m attempting to carry throughout?
With that mentioned…
Let’s do a fast recap, lets?
- Transferring Common Crossover doesn’t work once you commerce just a few markets
- Transferring Common Crossover works greatest once you commerce many alternative markets
- Concentrate on the idea, not the parameters
That’s just about it!
Now right here’s what I wish to know…
Are you at the moment utilizing a shifting common cross-over technique proper now?
If that’s the case, what enhancements you’ll make to your technique after studying this coaching information?
Let me know your ideas within the feedback beneath!