Thread: GOLD signal
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Old 05-25-2007, 05:44 AM
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The problem is with your system. Whipsaws will kill it. The system shouldn't treat the slightest change in price as a change in signal. It's common to see such system in MA crossover, MACD crossing 0, RSI reaching oversold/overbought, etc.

Try adding some filters to it. You take the trade only if it has crossed and stayed there for a few bars, or only if indicator 1 has crossed indicator 2 for some distance. If I'm not in a hurry, I will wait for price to break out by creating limit order to buy at today's high or sell at today's low. To go up one more level, I would use Super S/R indicator to box the price for breakout.
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