stock trends

by Allan
(Australia)

Could you please give any further information re, Ed Burke winner of the CNBC'S challenge.

During the competition among stock trades he executed 700 "currency trades" in just four days.

I would like details on the currency trading.

Thanks
Allan

Comments for stock trends

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Sep 30, 2010
Ed Burke Moving Average System
by: Admin

Hi Alan

Thanks for your email about more information regarding the 700 currency trades that Ed Burke made in his E-Book "Making Money In Stock Trends".

The system Ed used is a three moving average crossover. He trades all instruments the same way, stocks, forex, bonds etc. In his ebook he gives the specific rules that include applying them to longer term charts in addition to the shorter term.

The system uses 3, 6 and 18 moving average. As the 3 and 6 are very close to the actual price, I can see its merit instead of some moving average crossover systems that are too slow and lose too much profit.

I have included excerpts from the book below about using a moving average system. This is what the developer of the system had to say;

Quote : "Do not be dissuaded by the simplicity of basic moving averages. I agree they are neither unique nor new. Some readers may be quite familiar with widely publicized mediocre crossover strategies.

Conventional wisdom dictates that simple moving average crossover systems achieve a win rate of no
greater than 40%. I doubt it is that high in some instances. However, I will demonstrate how you can
achieve 80% winners or better. My unique trade management system will get you to break-even on
most trades. THE SECRET LIES IN SELECTING ONLY CONTINUATION SETUPS WHICH DEMONSTRATE VERY SPECIFIC TECHNICAL TRAITS. After this, a thoroughly integrated trade and risk management system will give you total control during each bar of the trade. You will know EXACTLY what to do and when to do it.

It will take time to develop your own style. Proper use of this system will result in consistent profit over a long period of time. Try it first before investing. Develop your strategy. Many online brokerages offer simulated trading platforms. Use them and paper trade your system first. Much has been published in the last few years about back testing trading strategies. Advances in software and computing facilitate this
practice. I agree that this is useful and necessary. However, each setup is unique. You can learn to allow your intuition to focus on low-risk entries that the market gives you. I would suggest that after sufficient back testing you ?forward test? the method. Build a sample of twenty (20) trades (in simulation) and manage them according to the suggested process. The results will be astounding."

Hope this information helps. If you want more information do not hesitate to ask.

Regards
Fritz
brainyforex.com
Return to systems available to the public here.

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