Friday, November 24, 2006

Swing Trading - 2

As promised I looked at some shorter term averages and - wow - that's about all I can say - well I could say some other things but I'm trying to keep this family friendly - if you get my drift.

I used an EMA 21 and an MA 20 - at two different levels of severity - 5% and 8%. The backtesting script remained the same - here are the results -

< EMA 21 5% -144 8% -5721
> EMA 21 7883 855

< MA 20 804 -1067
> MA 20 10754 4676

What this is saying is that being above the short term average is a good thing and that being above the simple 20 period moving average is better than being above the exponential 21 period moving average. That, naturally, is totally different from the findings with the longer term averages.

Wow! Now I have to go and look and see what combining the long and short term averages will do for us. I can hardly wait.

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