Complex trading system #2 (“2-Cross”)
Submitted by Edward Revy on April 19, 2007 - 16:34.
Currency: GBP/USD (preferred) or any other.
Time frame: 3 hours (preferred) or 4 hours.
Indicators:
SMA 200, SMA 100 – these are two influential SMAs; you will find price “obeying” their boundaries.
SMA 15
EMA 5
MACD (12, 26, 9)
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No problem, Luigi
Keep on trading, you should be doing well with those simple changes.
(I hope you meant going LONG when price is above 100 and 200 SMA).
Best regards,
Edward
Wow i'm deeply impressed with the work you are doing here. Also i would like to thank your crew, i'm a beginner and i didn't really understand forex strategies until i stumbled upon your site and the other links. I have been practicing your strategies and others as well and i'm confident that in the coming weeks, i too can make the same claims of 200 % gains. I'm very grateful to you Edward and your crew, your selfless acts will surely be rewarded a hundred fold.
My regards
Augustine
Thank you for you kind words, Augustine.
Happy learning and trading!
Regards,
Edward
Hello everyone,
This strategy seems to work pretty good, well actually i personalized it with for ex. the 9ema and 50sma just to pin point my entry or to stay out of the trade when the 50ma stays on a horizontal course. I just have one question to solidify this strategy. Can i leave my trades 'overnight' or when the market is trending?
When leaving trades overnight place a trailing stop.
The step of the trailing stop = the distance between the two most recent Parabolic SAR dots. Evaluate PSAR (0.1, 0.1) and (0.02, 0.2), whichever shows a greater distance at that moment will be used for setting a Trailing stop.
Regards,
Edward
I use a method very similar to this and in putting it together realized that since the entry requires both the MACD and SMA's to cross and given that the MACD parameters are set to longer-term EMA's, the MACD will almost always be the critical indicator. Meaning that every MACD crossover will be accompanied by an SMA crossover in the vicinity but not every SMA crossover will be accompanied by a MACD crossover. So that begs the question why not drop the SMA's and just trade on the MACD? In fact, you are doing this already.
In my own strategy I keep a slightly faster pair of EMA's on the chart but use them for additional visual reference only. As a filter to false signals, I've found an oscillator such as the RSI to be effective in some instances. I have never considered using 100 or 200 SMA's and I thank you for posting this!
by the way, I am an nooob, so dont listen to me ;)
This is a really great trading system. Simple and effective.
Thanks for posting it.
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