34# Moving Average Crossover Trading System
Our Four Sets of Moving Averages Crossover System is an attempt to improve on the dual moving average crossover system (DMAC).DMAC assumes one moving-average
combination is best for long entries, long exits, short entries, and short exits.We wanted to find out if performance could be improved by optimizing the moving averages for each of the four tasks.
Our tests showed that the values that worked best for one task (e.g. long entries) weren't the best-performing values for other tasks (e.g. long exits, short entries, and short exits). When a pair of moving averages was optimized for each task, net profit and other important performance fields improved considerably.
a) Using the MovAvg 2 lines indicator, calculate the following four pairs of simple moving averages:
Long entry = 7/23
Long exit = 4/8
Short entry = 6/18
Short exit = 2/9
a) The setup to buy is SMA:7 crosses above SMA:23.
b) The long entry is at the high of the setup bar plus 4 pips.
a) The setup to sell short is SMA:6 crosses below SMA:18.
b) The short entry is at the low of the setup bar minus 4 pips.
a) Exit a long position on the next open when SMA:4 crosses below SMA:8.
b) Exit a short position on the next open when SMA:2 crosses above SMA:9.
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