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I took 100 TRADES with (FASTER) BEST Golden Cross Trading Strategy and this happened Day Trading - YouTube
Channel: TRADING RUSH
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The golden cross trading strategy is still
popular, but it's old.
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When we tested the Golden Cross Strategy 100
times, it got a 42 percent approximate win
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rate with a 1.5 to 1 reward risk ratio and
the profit graph in the Trading Rush App went
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in the upward direction, but it was not that
good.
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The Golden Cross Trading Strategy uses the
Simple Moving Averages, and as you already
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know, the simple moving average is a lagging
moving average.
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In fact, it is slower than the Exponential
and Weighted Moving averages.
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So what will happen if we improve the Golden
Cross Strategy by switching the SMA with a
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faster moving average like the weighted moving
average.
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And that's exactly what I did.
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In the last video, we learned more about the
weighted moving average and the strategy based
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around it.
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So in this video, I tested the better and
faster Golden Cross Trading Strategy 100 times,
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and here's what happened.
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If you want to know more about the entry conditions,
check out the previous WMA strategy video.
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And Subscribe to the Trading Rush Channel
and ring the notification bell, to see win
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rates of more trading strategies we have tested
100 times so far.
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Because you don't want to risk your money
on a strategy that doesn't work.
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Number 1.
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Since the Original Golden Cross Trading Strategy
got a 42 percent win rate, one can expect
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a similar win rate with this modified Golden
Cross, after all, all we are doing is replacing
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the slower moving average with a faster one.
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But surprisingly, the win rate was actually
better.
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In the Trading Rush App, the profit graph
of the original Golden Cross went in the upward
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direction at the beginning, but then started
a downtrend and didn't really came back in
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the positive territory until the very end.
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Now remember, both strategies were tested
on the same pair, same timeframe, and almost
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the same market structure.
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But if you look at the profit graph of the
Weighted Moving Average Golden Cross, you
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will see that it is more consistently going
in the upward direction.
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In fact, it never went into the negative territory
at the start even though the market structure
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was the same.
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Why?
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Why changing a simple thing as a moving average
is making such a noticeable difference?
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There is not much difference between the Weighted
and Simple Moving Average, right?
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Well, when the market movement is really good
and the price is making big moves, you won't
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notice much of a difference between the entry
signals of the two moving averages.
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One will be earlier than the other, but compared
to the big moves price makes in a good trend,
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they are not that far from each other.
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But the problem is clearly visible in the
slow-moving markets.
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As you already know, the price stays in a
range most of the time.
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And when the trend is slow, the weighted moving
average is like the Usain Bolt of moving averages,
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and the SMA is like a turtle.
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In the slow trending market, the WMA was so
fast at reacting to the direction change,
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that the entry signals it gave were actually
profitable.
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On the other hand, the simple moving average
was so slow compared to the WMA, the entry
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signals were generated near the end of the
trend.
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This is where the Weighted Golden Cross took
the lead.
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This is where the Simple Golden Cross lost
money, but Weighted Golden Cross made money.
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And as you can see in the Trading Rush App,
the Weighted Golden Cross Trading Strategy
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got a win rate of approximately 48 percent
with a 1.5 to 1 reward risk ratio, which is
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much better than the Original Golden Cross
Trading Strategy.
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When we tested the simple golden cross last
time, it made a profit of 500.
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Profit is still a profit, but the weighted
Golden Cross because of the faster and better
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entry signals, made a profit of 2000 which
is a lot better.
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It lost聽 7 trades in a row and won 4 trades
in a row.
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The best part is the profit graph.
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The profit graph of the weighted Golden Cross
is more consistent and looks way better than
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the profit graph of the Simple Golden Cross.
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5.8 + 7.5 + 6 + 6.5 + 7.3 = 33.1
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And now, if we give the Faster Golden Cross
Trading Strategy a Trading Rush Score, you
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will see that it gets a 33.1 out of 50.
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And if you come to the Official Trading Rush
Website, you will see that it ranks 7th from
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the top, just below the Ichimoku Cloud, and
above the Alligator Trading Strategy.
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And for reference, the Simple Golden Cross
ranks 23rd from the top.
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So we can say that the Weighted Moving Average
definitely improved the Winrate of the Golden
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Cross Trading Strategy.
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If you want me to test more trading strategies
100 times, subscribe to the Trading Rush Channel
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and ring that notification bell.
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After all, you don't want to risk your money
on a strategy that doesn't even work.
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Like the video if you liked it.
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Support Trading Rush on Patreon and get to
see in-depth trade analysis and trade opportunity
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signals.
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Thanks a lot for watching.
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