XPloRR MA-Buy ATR-Trailing-Stop Long Term Strategy Beating B&HXPloRR MA-Buy ATR-MA-Trailing-Stop Strategy
Long term MA Trailing Stop strategy to beat Buy&Hold strategy
None of the strategies that I tested can beat the long term Buy&Hold strategy. That's the reason why I wrote this strategy.
Purpose: beat Buy&Hold strategy with around 10 trades. 100% capitalize sold trade into new trade.
My buy strategy is triggered by the EMA(blue) crossing over the SMA curve(orange).
My sell strategy is triggered by another EMA(lime) of the close value crossing the trailing stop(green) value.
The trailing stop value(green) is set to a multiple of the ATR(15) value.
ATR(15) is the SMA(15) value of the difference between high and low values.
Every stock has it's own "DNA", so first thing to do is find the right parameters to get the best strategy values voor EMA, SMA and Trailing Stop.
Then keep using these parameter for future buy/sell signals only for that particular stock.
Do the same for other stocks.
Here are the parameters:
Exponential MA: buy trigger when crossing over the SMA value (use values between 11-50)
Simple MA: buy trigger when EMA crosses over the SMA value (use values between 20 and 200)
Stop EMA: sell trigger when Stop EMA of close value crosses under the trailing stop value (use values between 8 and 16)
Trailing Stop #ATR: defines the trailing stop value as a multiple of the ATR(15) value
Example parameters for different stocks (Start capital: 1000, Order=100% of equity, Period 1/1/2005 to now):
BAR(Barco): EMA=11, SMA=82, StopEMA=12, Stop#ATR=9
Buy&HoldProfit: 45.82%, NetProfit: 294.7%, #Trades:8, %Profit:62.5%, ProfitFactor: 12.539
AAPL(Apple): EMA=12, SMA=45, StopEMA=12, Stop#ATR=6
Buy&HoldProfit: 2925.86%, NetProfit: 4035.92%, #Trades:10, %Profit:60%, ProfitFactor: 6.36
BEKB(Bekaert): EMA=12, SMA=42, StopEMA=12, Stop#ATR=7
Buy&HoldProfit: 81.11%, NetProfit: 521.37%, #Trades:10, %Profit:60%, ProfitFactor: 2.617
SOLB(Solvay): EMA=12, SMA=63, StopEMA=11, Stop#ATR=8
Buy&HoldProfit: 43.61%, NetProfit: 151.4%, #Trades:8, %Profit:75%, ProfitFactor: 3.794
PHIA(Philips): EMA=11, SMA=80, StopEMA=8, Stop#ATR=10
Buy&HoldProfit: 56.79%, NetProfit: 198.46%, #Trades:6, %Profit:83.33%, ProfitFactor: 23.07
I am very curious to see the parameters for your stocks and please make suggestions to improve this strategy.
Exponential
2/20 Exponential Moving Average Backtest Strategy
This indicator plots 2/20 exponential moving average. For the Mov
Avg X 2/20 Indicator, the EMA bar will be painted when the Alert criteria is met.
You can use in the xPrice any series: Open, High, Low, Close, HL2, HLC3, OHLC4 and ect...
You can change long to short in the Input Settings
Please, use it only for learning or paper trading. Do not for real trading.
