Trend Following Weekly Moving Averages

Reader: I saw the documentary you posted on Twitter regarding fractals and I am extremely happy to see that you studied the source. There are very rare people that do that. I tested some systems based on weekly moving averages/breakouts in futures markets. The results are very good, but one has to wait the whole week & it requires tremendous patience. What say regarding weekly strategies in futures markets?

Covel: Weekly. Yes! Many top pros do so too. Were you looking for a quick confirm?

Reader: Yes, because I used to trade daily time frames. Never thought of weekly. Now when I tested I found it to be smooth. Although there are sometimes only 4-5 trades a year. Also, in some stock futures I backtested and found the results slightly negative over 10 years. But in combination of overall portfolio it was greatly positive. Also, I think that the majority will not think of weekly time frames while trading futures in this High Frequency world of today.

Covel: I agree. Many agree. It works. Has for decades. Patience is an issue for any strategy.

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