Student’s Question:
Regarding Moving Averages, I tried a few different combinations and some of them give good signals on some pairs. I suppose it you find an MA or combination of MAs that provided you with good buy/sell signals a few times in the recent past, then you could go ahead and base a trade on it. I guess you may even find something that no one or very few people are using at the time and you'd have a slight edge while it lasts.
For example, you may find a pair of MAs that cross each other slightly before the more common ones and get you in and out before the crowd.
I think so anyway. What's your opinion?
Power Course Instructor’s Response:
While I see you thought process here, keep in mind that signals that will put a trader into a trade sooner, will tend to have a lower reliability factor than will signals that are based on a longer time frame. Quicker signals will put one into more trades but the win/loss ratio will be lower while slower signals will put one into fewer trades but the win/loss ratio will be higher.
