Hi guys, I'm just a little guy, a beginner. I would like to know if anyone in here would like to like help me create a trading algorithm, just a simple automated trading strategy please please please, pretty please. I want to try to create something that buys on a 13/48 EMA crossover to the upside, and short on the down. Just that simple, I'm new to trading and would just like to see how that works.
hope you have a good bank balance you are going to need it. first what program you using and second the killer is the spread. the problems come in with what you don't see in the charts, the line cross is not always one event and can be 30 events in a very short space of time, depending on when you buy the share, in trading hours or after hours you can loose big time and very fast.
what you are looking for is exceptionally difficult to get right, the market also causes problems, one system works well in bull and not in bear, and a sideways market just wipes you out no matter what system you play. a better strategy is to try and refine the process so that you have far less trades but each trade you do take has a better chance to deliver a profit.
so with the line cross what is MACD doing, where is the RSI and what is the overall trend, all that and you will still only get 70 percent to convert to cash.
the bottom line is this is definitely not simple and also not something you want try with real money until you are quite sure your system works.