Hello, all i wanted to ask i have a strategy i have created. its more so an intraday to swing as trades could be going on for days if the trend i strong and i haven’t got my exit signals.
essentially it a wma(2) and ema(2) crossover with a 200 ema as the baseline for trend confirmations and i use an macd with a rsi that shows divergence to get extra confirmations.
my question the strategy has been doing solid so far but i are your take on indicator-based strategies and are viable in the long term because. fell they are really looked down upon if as a trader yuo trade with indicators and especially with the rise of ICT and whatnot is easy to want to switch strategies when you see traders on youtube making like a 5:1 RR, now mind you i i know it bar replay and and the markets are changing to so its not all the time the 5:1 rr will be hit. anyway what is your opinion on this ?
Hi, I have not really understood what you are asking but my advice would be that if what you are doing is resulting in overall winning profit. do not break what does not need fixing. Keep using that strategy until it does not work any more. Then ask yourself if the market conditions have changed (bear to bull, bull to ranging) and why your strategy is losing. In the most simple case, if your strategy is not working and you decide to do the exact opposite of what your strategy was doing before it started losing, is it important that you understand why?
Lots of research and testing has been done on MA crossovers as entry signals on the D1 time-frame. They find that win rate is positive but returns will not be impressive. The poor outcomes get much worse if the positions are held until the opposite MA crossover prints.
As if this wasn’t bad enough, almost nobody has done any hard research work on MA crossovers intra-day - its such a poor method they didn’t even bother.