Exit Strategies

[Fran8]

Hi

I use a simple strategie for entering a position a ema 20/40 crossover. Im happy with the entry signals. I know that moving averages is a lagging indicator, but Im happy with it since I will jump in when the stock is already moving.

The problem that I have is that the exit strategie with the moving averages crossover system is not that good, I have backtested and the sell signal is always given at the bottoms so Im a bit **** off.

So if anyone could give me any direction would be nice

 

[Black Swan]

Hi

I use a simple strategie for entering a position a ema 20/40 crossover. Im happy with the entry signals. I know that moving averages is a lagging indicator, but Im happy with it since I will jump in when the stock is already moving.

The problem that I have is that the exit strategie with the moving averages crossover system is not that good, I have backtested and the sell signal is always given at the bottoms so Im a bit **** off.

So if anyone could give me any direction would be nice

why are you "happy with the entry signal" if your overall trading plan is not working? Moreover, you actually think a "simple" x-over will work (at those 'speeds') ....on equities?

 

[Fran8]

Well Im happy with the entry signal because the entry signal works.

What does not work is the sell signal. Also I don think that because I use a more complicated method is going to work better. What works works not matter if is simple.

 

[Black Swan]

Well Im happy with the entry signal because the entry signal works.

What does not work is the sell signal. Also I don think that because I use a more complicated method is going to work better. What works works not matter if is simple.

OK...How long has this entry signal been "working", and on what TF, are you using it for EOD? Typically how many trades do you take in any given trading day? What's your current win rate, how much you risking per trade...? What equities do you specialise in, mining/retail/banking, or are you using a scraper to flag up opportunities...?