The Irrepressible 3-Moving-Average-Cross Robot

The Irrepressible 3-Moving-Average-Cross Robot

July 5, 2023

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Some really good traders/educators tell us that our systems should definitely work on other things.

For example, if a system works on SPY, it should also be reasonably profitable on QQQ. Or if it works on the EURUSD, it should also work on the GBPUSD.

The idea is to try to stop curve fitting.

If a strategy only works on one thing, then it’s probably been optimized too much and will fail in the future.

Makes sense.

Other really good traders/educators tell us that it doesn’t matter if your testing only works on one instrument.

After all, each instrument has a completely different personality.

If a teacher has to use a totally unique method to help one student, that doesn’t mean that student isn’t learning or doesn’t count.

Maybe a specific methodology won’t help everyone, but that doesn’t discount how well it works on someone.

Makes sense.

And the 3-Moving-Average Cross robot falls into the second category.

As you may remember, the 3-MA-Cross is an old robot using an old, timeless methodology. MA crosses have been around forever (and have been producing profit forever).

However, I don’t remember how I got the settings on the GBPJPY 30-minute chart (that’s how old it is) and the settings don’t really work on other Forex pairs.

The settings do produce some profit on other JPY pairs but that tested profit is about 10x less than GJPY.

(If you’re looking for the exact details on this robot, I discuss them for free in this older YouTube video. Watch it HERE.)

So, common sense from the make-it-work-on-everything group would say that this robot is a piece of random internet garbage, and that it’s destined to fail sooner rather than later.

But here is the tested Equity Curve from 2023 (and we know the GJPY has been filled with whipsaws this year):

It’s done well.

And here’s the Equity Curve from 2018 to 2023 trading 1 lot each time:

And this is the Performance Report via Portfolio Architect from 2018-2023 on a hypothetical $20k account:

It may not work spectacularly well on other instruments, but it’s been working well for a lot of years in a row.

Which makes sense?

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.