Complex trading system #2 (“2-Cross”)

Sir,
I am bit confused and unable to understand the lines " only after the current candle has closed on the opposite side of the SMA. SMAs this big do not get crossed very often." Please do help me

The market can trade above 200 SMA, but then move below the moving average (this will be the opposite side).
In other words, in the beginning price bars were trading & closing above 200 SMA, but later they dropped below (read - "to the opposite side of") the 200 SMA and closed below the moving average.

If you place 200 SMA or 100 SMA on the chart, you'll see that price doesn't cross these moving averages too often. On daily charts, for example, the price may trade alongside a large moving average without crossing it for months.

Best regards,
Edward

Hi Edward ... just wondering if this stratagy still works as described in the first post. Also out of all the stratagies on your site which would you say are you favourite ?

Regards

Dan

Also, do we only enter the trade on the candle after the SMA/EMA cross. For example if the Macd cross and the the SMA and EMA lines cross do we then wait for the current candle to close before opening a trade. In the trade example that you gave on the first page .... would'nt the (1) trade be a loosing one .., since the EMA/SMA cross occured on the long candle. if we had placed a long trade on the close of that candle we would of been stoped out as price retraced ??

I see that you mention to only trade this system during the london and new york sessions doesnt this mean that we only get one trade per day since we are using the 4 hr TF. how do you determine when to leave your trade open for the whole day ?

Hi Dan,

of course, the strategy still works. Trading systems based on moving averages are never affected by time and changes in the market over the years.

We enter as soon as we have all signals in place, but no earlier than the Closing of the candle on which we've got the last signal and the green light to Go.

The first trade on the screen shot is a losing trade, that's correct.

Trading opportunities come once in few days. Any trade should be left open, unless you have concerns about the successful outcome. When trading on 4 hour charts, I always have time to check on a trade every 4 hours. At the same time, when we enter a quiet Asian session, I can leave it without attention for a longer time.

Regarding favorite strategies, I get this question very often. I should say that I rather favor trading ideas, which one can use in building/shaping own strategy. I use a combination of various strategies and ideas in my trading.
If to name few, these would be advanced #1, 3, 5 and 14; trading method #1, simple #5 and 8. As the collection grows, it's impossible to rank strategies properly, because I can't trade them all, while the new ideas, new indicators are getting more and more sophisticated, and sure deserve attention.

Happy trading!
Edward

Hi Edward.

There is so much to read all over the Internet about strategies, especially for FOREX. However, your site is the best! Thanks man, keep up the good work. This strategy is one of my favourites. It is important for me the strategy isn't too complex, I think for everyone, otherwise you gonna get very confused. It is also important for me working with some "slower" timeframes. In any case slower as 1 hour to filter false signals and movements.

Thanks a lot Edward, you're great man!

Regards from The Netherlands,
Jilles

Thank you, Jilles

Happy trading!
Edward