Hello, I am trying to program a brute force backtesting program, where trade entry conditions are based on SMA/EMA combinations.
For example favourite use is if short sma crosses long sma from the bottom, it might suggest an uptrend. In this case my program will backtest several different sma's, for example every combinations of sma10-50, crossing sma60-100.
I am looking for other entry signals based on sma/ema, which I can test in simmilar fashion and there can be more conditions, like short sma crosses long sma and 3rd sma is (10-50)ticks above price, which could indicate a different market situation, etc.
I am trying to flip through milions of sma patterns, which should include different market situations and count how successfull they are.
Any more widely used sma aplications, that can be tested in similar manner?
For example favourite use is if short sma crosses long sma from the bottom, it might suggest an uptrend. In this case my program will backtest several different sma's, for example every combinations of sma10-50, crossing sma60-100.
I am looking for other entry signals based on sma/ema, which I can test in simmilar fashion and there can be more conditions, like short sma crosses long sma and 3rd sma is (10-50)ticks above price, which could indicate a different market situation, etc.
I am trying to flip through milions of sma patterns, which should include different market situations and count how successfull they are.
Any more widely used sma aplications, that can be tested in similar manner?
If you want to enter the market, you are looking for a particular situation. If it is strictly technical analysis, some indicators need to have some values (or crossover, or bounce of or something). I want to backtest a range of entry conditions, to find valid ones. For now I am looking for those MA based. For example I can try backtest crossover of fast MA (all from 10-60) with slow MA (from 100-150), that would be 2500 combinations, maybe put 3rd condition like MA(200-250), needs to be either above or below the price, so thats 2500*100 combinaations. I am looking for suggestions simillar to that, how to define a range of different entry conditions with MA (not necessary, crossovers), to incorporate as many possible market situations, like the trend is up, but there is a turn down, not trending but sharp downturn etc...
