I have been trying to develop a simple long term trading system by eyeballing the charts and I think I have found something.
I would appreciate if somebody that knows how to program to run a back test on this. I started a demo account to forward test it.
Here are the rules.
- Monthly Chart
- Weekly Chart
- Daily Chart
- 3 Period SMA ALL Charts
- 3 Period WMA ALL Charts
On each chart when the WMA is above SMA Long 1 Unit
On each chart when the WMA is below SMA Short 1 Unit
The way it works you will either be Long or Short 1 Unit when two out three are in the same direction and Long or Short 3 units when they all line up.
It looks like a winner but I think it needs to be tested to see the draw downs which may be rather high.
It may work with any 3 time frames but I am interested in the big time frames as I am not interested in sitting in front of the computer.
As far as I see it catches all moves but I would like to figure out the optimal size to trade each pair based on draw downs.
Any help is appreciated.