Forex trading strategy #8-a (My Line In The Sand)
Submitted by User on September 26, 2010 - 14:09.
Every one says keep it simple and the trend is your friend. This is as simple as it comes and it utilizes daily trends in the Forex.
Currency pairs: ANY
Time frame chart: Daily
Indicator: SMA (I use a 30 SMA on most my charts but the idea is to choose a SMA that gives you the best looking trends.)
Entry / Exit rules:
Crossing the SMA in either direction, in other words you reverse your position when ever the price crosses the SMA
2% of your account per trade
1 open trade per pair with a stoploss of 1/2 % of your account (even though the idea is to reverse your trade every time the price crosses the SMA, there will be times that you’re not going to be there in front of your computer and in those cases you will need a stoploss to ensure your account only takes a small loss.)
Advantages: This is a trend following system and the Forex does trend.
Disadvantages: In periods when the market is not trending there will be a lot of little losses. (For me, this is price I pay in order to catch a big trend.)