So I’ve been reviewing the Thee Ducks set-up, trying to make sure I have a through understanding of it.
I wanted to get sort of an “independent review” of the strategy, so I started a thread on r/Forex asking if anyone was trading it. The only real reply I got, the only one that stuck out in my mind, was one that said:
“Using the same moving average… in two to three different timeframes, is the same thing as using two to three different moving averages.”
I turned that over in my mind, trying to decide if it were likely true. After much reflection I don’t see why it wouldn’t be.
So if we were to adapt Three Ducks from single moving average over three time frames to three moving averages over a single time frame, how would we do that? This is what I’d like to explore in this thread.
As written, Three ducks uses a 60 period SMA on three time frames - 4-Hour, 1-Hour, and 5-Minute.
If we wanted to replicate the results on a single chart, but keep the same ratios, then supposedly we could use the 1-Hour chart with a (60 x 4) 240 period SMA, a 60 period SMA, and a (60 / 12) 5 period SMA.
Now I’ve got to say that, when I read that, it sounds just are ridiculous to me as it did when I wrote it. 240 period SMA? 5 period SMA? Those sound preposterous to me! Not that I have anything to base that on. It just SOUNDS wrong.
Earlier this evening, before I started this thread, I was thinking all of this over and started saying to myself “Well, I’d just replace the THIS period SMA with a THAT period SMA, and that OTHER period SMA with an EMA…” I quickly realized that what I was doing was just picking numbers out of my ass for no other reason than I thought it made me sound smart. And that made me feel really dumb.
So here I am, asking much smarter and more experienced people than myself, have any of you experimented with Three Ducks but using three moving averages over a single time frame?