Why Moving Average Crossover Strategies Don't Work (Answer Transaction Costs)

In this video we discuss why conventional moving average crossover strategies don't work -- and what can be done to make them work. Join us in the discussion on InformedTrades: Donate to InformedTrades -- because it helps us do an even better job of helping traders learn: http://www.informedtrades.com/trades.php?page=donate

Comments

1. I think you are in the wrong business. Have you tried telemarketing?
2. so many things wrong i dont know where to start
3. 50-100 ema cross - price up 100% in 12 months then 20-50 ema cross - when price above $50(when institutions get interested) in Oct(seasonal time) would have got Skyworks, Taro, Medivision, Skechers Oct 2014 -( all stocks up at least 50% - with leverage maybe = 4-1 return) +buy again any 20-50 cross in feb - trade the trend - be patient - simplify - don't try and catch lightning in a bottle - dont have to know earnings - what CNBC say's etc - all i care about is what the price is doing
4. So how do you know when to act? As far as knowing when to trade? Are you supposed to follow the chart ema line in real time in order to know when to execute trades, or just base it on the previous day chart crossing? What if it crosses and then goes down or up immediately in the same day?
5. Different moving average on one chart of one timeframe, can't say about it,but MTF moving average of different timeframes on one chart make more sense.
6. At first I disagreed with this video but at the end in his summary of additional factors and indicators that should be added to a crossover strategy made it very helpful.  Crossovers can work; especially for swing traders i.e. 50/200 SMA Crossover..
7. Good profits can be made scalping ma crossovers alone without other indicators. You obviously need to find a timeframe and risk profile that suits you and have a rule based exit to adhere to. If you allow some scalps to run they can be real earners so I would disagree with this video. And why single out transaction costs? If too many trade signals are being generated then your ma's are too close. Not a helpful video.
8. If you use MAs that are longer, you will like them. Banks use 50 and 200