FREE FOREX STRATEGIES

Forex trading strategy #36 (9 & 100 SMA cross)


Hello Guys,

I just found out a very good strategy based on trend which can grab 100-200 pips per trade. originally I am not the one who create this method but i just want to share with you all because i have some difficulties in exiting the trade and maybe on entering the trades(during ranging) too but hopefully we all can sort it out to filter those false signals.

Pairs
Any..Currently i use GBP/USD

Time frame
30min-1hr and it may be used for scalping

Indicators
9 SMA on close
100 SMA on close
RVI = 100 (relative vigor index) same as Sidus' indicator. (THIS INDICATOR IS NOT NECESSARY I(the author) USE IT FOR MOMENTUM MAINLY)

Method
LONG - When the 9 crosses above the 100 SMA Buy and it helps if the RVI is above 0
SHORT - When the 9 crosses below the 100 SMA Sell and it helps if the RVI is below 0

(EXIT)
Close your position and reverse it when the 9 crosses back or Close the position when the price crosses back over the 9 SMA by 20 pips.

Additions
You may generally have periods when the price may whipsaw 1 or 2 times in a row, but 80-90% of the time when the 9 crosses the 100 you will catch an awesome move.. I trade only the GBP/JPY on the 1 hour (1 to 2 trades a week)

Let's get together and run this system to see how it goes.

Here is an image of the system in play.

I prefer the 1 HOUR CHART. You don't even need the RVI, but i use it to confirm the momentum(According to the author of this method)


Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

plase use smoothed not simple \EMA you will see the direrence ,form simple get to much false signal!

hi, i've been using this method for sometime on the 4 hour chart. i find the best way to exit a trade is to open many positions, e.g open 5 positions when the MA crosses over, and have different target levels for each trade. e.g 100, 200, 300, 400 and 500. incase all the takeprofits are not triggered and the MA crosses over again, close all the trades and open trades in the opposite direction.

Gizaiga

consider using VMA [10,126](variable MA)instead of SMA 100. The VMA settings came from a strong study I came across, but recco one researches the VMA settings independent of this opinion.

I ve been tested this strategy and the exit will be better when used with RSI. Since we use SMA 9, the RSI should be set to 9 as well.

Mywid

One love i believe your system Azim, from CK.2X.

this system is really good.u can put sl in 100ema.when 9 cross 100 from avobe u can take long and u can put sl in few pips down from 100ema.same strategy in short.i put tp always 200 with this system.

where did i get this statergi afl.pl let me know

i tried it, initially it works due to a strong trend but because there not a good stop loss to protect the gain.. the gain turns to loss.

it won't work if there no strong trend and no stop loss

what system did u use to backtest?

I backtested this strategy for 2 and a half years and had a net loss of 2379 pips. Never made a profit.

I'm a Newbie, but from what I have learnt, it looks as though this strategy is good for a trending market. If market is sideways then you aren't going to get many pips from this, and you would adapt strategy accordingly.

Hi,

Could you elaborate on how would the default RSI (14) would get you out of a better spot?

default RSI (14) would get you out at a better spot than the cross back in the other direction.

I backtested this strategy for 2 and a half years and had a net loss of 2379 pips. Never made a profit.

I have tried to add 50 linear weighted MA and it gives me good results.
So now setings are: SMA 100(close),SMA 9(close) and linear weighted MA 50(close) it With this setup is much easier to spot exit signals, as well as entry signals.So this is how I use this strategy:
BUY SETUP:
--------
When the 9 SMA cross the 100 SMA from above- enter trade (as author mentioned)
When the 9 SMA cross 50 linear weighted MA from below exit trade.

SELL SETUP:
----------
When the 9 SMA cross the 100 SMA from below- enter trade (as author mentioned)
When the 50 linear weighted MA cross the 100 SMA from above -exit trade.

Try and you will see.

Best regards and lot of $ !
FXTrader

Hi Rick,

if the 9SMA goes below the 100 SMA then you Sell.
(As per strategy rules, an additional confirmation can come from RVI, which at this point should be below 0)

If the 9SMA goes above the 100 SMA then you Buy.

Best regards,
Edward


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