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

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

hello thanks for the stragety. i wanna know what if the 100 sma crosses over 9sma then what do i do?. please edward can you answer thanks.
rick

Note that these types of systems have significant draw downs when the price isn't trending and typically have low win percentages (e.g. 30-40%, not the 70-90% claimed here) and unless you have the extreme good fortune to start out on a trend you will typically start out in the hole and have to make your money back.

This sounds pretty good to me. I've checked it a bit and what I've found out is that the 9 SMA is a bit lagging. I've put a 2 SMA and it gotten better to me. Also, the Vigor doesn't give you any clear clue. Just waiting for the Vigor lines to get past the 0.0 line is loosing to much time. I've put an ADX 51 instead and I've found out that the ADX in this case is more powerful, because it always gives you better picture of the momentum of the trend.

This is my insight though, have fun and happy trading.

Thanks

55 EMA
3 EMA is better in 1H

Hello Guys,

I Suggest you to use GBP/USD and Try using Awesome Oscillator and Parabolic SAR to Filter=)

I get too many false signals.

RVI seems to cross the 0 really late.

Any suggestions?

I think this strategy is not for volatile pairs.

EUR/USD has a lot of whips.. :(

this looks agood system, thanks for sharing it

Well i use Trailing Stop=)

Try to read the 'Exit approach for EMA/SMA crossover system', i use that to exit my trades^^

Quote: "RVI ... Moving Averages."

So what kind of exit strategy do you use then?

Hai,

The RVI does not require for a cross to happen..you just have to look at it whether the RVI is greater than 0(long) or less than 0(short).

LONG - When the 9 crosses above the 100 SMA and RVI is above 0
SHORT - When the 9 crosses below the 100 SMA and RVI is below 0

Kind Regards,
Azim

It doesn't appear often that the RVI crosses when the SMAs cross.. Right?

Quote: "use cci (14) when it hits zero when the cross is long to exit. when the cross is short, exit when cci (14) goes above zero."

That's a good exit strategy, but you will be missing out on further profits...

RVI
RVI seems to be somewhat accurate in terms of further confirming an entry or exit in a trend.
Its faster and non lagging. But it could be deceptive when market is ranging or trying to readjust. That is why one needs to fully understand the activities behind the market (Fundamentals), Chart/Candle Patterns and the system itself.

RVI can be downloaded here: http://codebase.mql4.com/download/7230

I dont quite fancy the RSI indicator for this system because of its oscillating nature. The RSI guides a trader for overbought/oversold regions which is not a primary solution to make the best out of this system.

When RSI indicator signals overbought or oversold for a pair, it is normal for a trader to exit or prepare to change direction. But In a Moving Average System like this in a higher timeframe, i've seen indicators like the RSI signaling overbought or oversold for a pair in a region and the market or trend still continues on the same direction for days/weeks or months and yet the RSI would still be its overbought or oversold index.

Parabolic SARS can be also deceiving in higher timeframes using Moving Averages.