RE: Stage Analysis Beginners Questions
Hi David,
I wanted to ask your experience with MA types. I see you're always using SMA's. Do you have any objective reason for that? Eg did you ever backtest performance when using SMA vs EMA?
I've always naturally felt like using EMA's, because MA is already a lagging indicator and with EMA you at least add more weight to the latest candles and hence reduce the lag. SMA (especially the long term ones) just seem so slow to turn. To be fair, I've never done a proper backtest between those MAs in my strategy.
While we're talking about backtesting, another question pops in to my head; What is your avg win rate using your strategy?
I'm using stage analysis as a part of my strategy and want to see if I'm going in the right direction. I especially see that I can improve in my trade execution. It would therefore be great if you could also in any future videos spent a bit more time explaining in more detail how you go from analysis to execution. In the last video you did give an example of performing SA on a lower timeframe to detail out entries, which I really liked.