Friday, December 10, 2010

A trend defining line

Would it be not easy to have a single line define the trend. So that we go long on cross above it and then sell on cross down.

It would be more easier to follow and tradable.

Well I think there does exists such a line. But beware it is not a holy grail. It does fails many times but will make sure that you will never have that left out feeling and  can give better returns on a half yearly timeframe.

Any ideas or comments on such a line.

The back tested results link for Nifty and Bank Nifty.

System Testing Trend Defining Line

Bank Nifty: System Testing Trend Defining Line

2 comments:

  1. If it would so easy then the profits will boil down to the fastest fingers. The assumed trend line being NOT the holy grail, makes the risk - reward worthwile.

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  2. Well, its not that easy to just buy and sell. I say the psychology governs a lot. And most important to stick to the rules even when u have 3 or 5 losing trades in a row.

    System will ultimately outperform the manual trading if there is no disciple and patience.

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