Finding The Holy Grail?

THERE IS NO HOLY GRAIL IN TRADING. 

THERE IS NO HOLY GRAIL IN TRADING.

THERE IS NO HOLY GRAIL IN TRADING.

If anyone tells you otherwise, please ignore the person. The truth is that there is no holy grail in the world of trading. However, we could possibly increase the probability  of a higher winning rate by making decisions based on overall assessment of the evidence / statistics / factors that appear in front of our very own eyes.

Using TradingView, I have created a simple buy-sell indicator based on standard metrics such as moving average crossover, RSI and MACD. In addition, to increase probability of winning, I have added an additional indicator (3rd party author) that is based on pivot points.

In my chart below,

  • Buy/Sell – signals generated by my indicator
  • Long/Short – signals generated by 3rd party author’s indicator

BTC.png

As shown in the above graph, 3rd party indicator generated an earlier “Long” position, 4-5 candles prior to the my indicator’s Buy signal. The 3rd party indicator also showed an earlier “Short” position, which is about 1 month + before my indicator’s Sell signal being generated. In a nutshell, the 3rd party indicator is relatively more reactive if compared to my indicator. I will tend to compare both signals to make a trade decision.

Does it really work?

Example 1 – Gold

LONG signal was generated back in early May 2019 whilst the BUY signal was generated in June 2019. Would have made 200+ points. At this juncture, there is no SELL or SHORT signal being generated for Gold.

GLD.png

Example 2 – Crude Palm Oil

LONG signal was generated back in last week of July 2019 whilst the BUY signal was generated by mid August 2019. No SELL or SHORT signal has been generated till date.

CPO.png

Example 3 – CIMB

Both SHORT and SELL were generated back in early March 2019. It was followed by a sharp drop thereafter.

CIMB.png

As shown above, both indicators appear to be cohesive between each other.

DISCLAIMER: THIS IS A PERSONAL INVESTMENT BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE STRICTLY FOR INFORMATION, ENTERTAINMENT AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES.

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