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Re: Automated Trading Theory Discussion
I wouldn't believe them no. There's a difference. Buddhism works for them, but does that mean Catholocism doesn't work? In forex terms it's like saying, using an automated price action system works, but does that mean a MA system doesn't work? Would a system based off of RSI not work? I'm sure there is a system based around it, I just care not to go in that direction since it doesn't directly follow price. There is more than one way up a mountain. MA's follow price and are easily determined by computers so that is why I think it is the best for automation.
I'll have to read a lot of the MA EA threads. What do you say to my idea of efficiency and always adjusting around it? Adjusting chart time frames, MA periods, etc.? I still believe it depends on what chart youre looking at. Does a 20 WMA on a 10 minute chart not quickly show the early beginning of a 6 hour down trend? It can, but will whipsaw on the way down.
Also, how much of the movement are we interested in capturing? When you wait for confirmation of a breakout you give up the pips possibly gained by entering before confirmation. Are we not doing the same thing with MA's? Matt
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