Hi Nicolas and Vonasi,
Thanks for all the effort so far in helping me,
I looked at the different contributions on this forum.
However, they all miss for me an important part; and that is the phase in which you should not trade. That is the ‘white’ phase i will explain below.
In other words, when starts the trending phase (long) when start the trendingphase (short), when start trading phase (horizontal) is the phase in which you do not trade. The idea is then to avoid the horizontal trading phases, and catch as early as possible the new possible trendingphases..
In short the idea is (for instance we take in this example 15%):
Long (green color): if the SMA makes more than 15% upward movement.
Horizontal (white color): if the SMA stays between minimal changes up and down and up and down -15% and + 15% so … stays more or less horizontally, the stock / indices will not go “anywhere” to make money.
Short (red color): if the SMA makes more than 15% downward movement.
So there is an extra phase in it, which is not yet included in the ideas already made. Per share or index it is then possible to see for yourself via trial and error what the best percentage would be .. eg 5% or 10% or 15% etc ..
Would be nice below the grafh visual to see, see my draw 😉 . But if its easier it can be placed right into the SMA itsself that changes of colour from Red tot White to Green and back.. depending of the percentage one chooses, is also nice!. And if its possible in the code to change the SMA(20) in a lets say SMA (14) would also be great! We all can try different settings and calculate the system in a normal backtest, with no optimalisation that makes it more ‘wishfull thinking’ to the future ahead. And even to use intraday.
If i could program, i would program it and share it, but i am more a idea-man than a programming-man unfortunately.
.
