Last week we added the Parabolic SAR.  Have a look at the first graph below.  You can see that the entry and exit / entry points of the MA crossovers are (visually) open to interpretation.  I have highlighted the worst case scenario using blue arrows.

Now that we are long, you can see the potential break-even level.

What is required is to create an exact trigger so we can calculate entry / exit points (and slippage) to see if by back testing this crossover strategy it is possible to get a result that has value.  There is software available and  both Lion Trader and MT4 have the capability of offering back testing.

We will delve into this next week, mindful of stops and limits, the amount we are going to trade (how it is actually traded e.g. in one go or split) and the effect that volatility may play.
First things first.......as the saying goes 'Slowly Slowly catchy Monkey'.

--- Hirose News ---

We are delighted to announce that a number of changes were made to the LION TRADER platform over the weekend of the 17th / 18th August.  You should now be experiencing  significantly increased speed of order execution.  We have been working on a number of strategies and the result of this effort has increased the scope for simultaneous multiple order execution.

If you have noticed any change in the platform performance or if you are experiencing any issues with other platforms then please let us know at info@hiroseuk.com

We have a full team of developers that are available to analyse any issues that you may have.

Happy trading!