Preventing Whipsaw – Using a longer moving average?

Can we possibly utilize a third, much longer time frame MA to prevent whipsaw and loss trades? Possible ideas are Only trade in the direction of the trend indicated by the longer MA If the longer MA has a flat gradient, we are in a sideways market so avoid trading. Add envelopes to possibly switch […]

Limiting losses during spikes – must use Stop Orders

Something I noticed today while investigating loss trades in my backtesting results. Suppose our strategy will automatically close out the position if on some condition, say either we have lost a certain amount of pips, or some lines cross signaling an exit. However, the strategies logic is only executed per update of the instrument. Let’s […]

Stop Loss / Take Profit

Today I did some optimizations on Stop loss and Take Profit with the Omar_MACD strat. Obviously the trending strategy will close out its own positions when the market turns against it, so strictly speaking a stop loss may not be necessary. However, in the case of flash crashes or perhaps network problems, I would feel […]