Lets say I want to trade S&P500 futures based on movements in other instruments such as The Dow Jones or Nasdaq
eg I want to go long the S&P500 future whenever the nasdaq goes above its 10 period simple moving average AND The Dow Jones also moves above its 10 period moving average
Conversely I want to go short when the Nasdaq AND the Dow both go below that moving average
I assume what I need to do first is develop indicators based on The Nasdaq and Dow futures crossing above and below their moving averages and then use these to develop the strategy for buying and selling the S&P 500 future
This is a simple example but the end goal would be to trade a specific instrument (like the s&P500 future above) using up to 8 other instruments when they all cross above or below their moving averages (some may need to go above and some may need t go below for the primary instrument to be traded long or short) and I want to be able to set the moving average periods for each of those instruments too
I just cant seem to work out how to use an instruments movements as an indicator to trade another one
Anyhelp would be appreciated
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