Told ya.
I wonder what the backtesting would show if the opposite decision making was done:
When the EMA10 crosses over the EMA21, sell. When the EMA21 crosses under the EMA10, buy.
Bad things!
You would have been holding from $17, down to $2, and then sold.
Even on the hourly data set?
Backtesting using the large spike during the summer is pointless. You could randomly flip a coin to decide to buy or sell and would have won.
Absolutely! That is why I said $17 after the high.
The fast EMA was below the slow EMA 90% of the time during the summer burst. Sure, there would have been a few opportunities, but I think the losses would have far outweighed any profits you would have seen. Think about false cross-overs!
This is the daily (since I can't set it for hourly that far back). But, you can still see that you would have been holding a lot, and very little profit taking
You would have been short for the rise from $.50 to $32.
You would have also been long from the middle of August through the end of October.
