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

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.

I don't think you can replace it like that... otherwise why create RVI..

I can use the RSI instead of RVI, right??
because my platform does not have the RVI

Dear Edward

I am currently using FXCM platform, but am not able to find the indicator RVI, is there any other indicator which I can use to replace this?
Thanks

Edwin

Hi There,

Its nice to know that this system benefits most of the traders here, i am really glad for the positive response from all of you in trying to improved the strategy.

i am absolutely agree that when we look at historical charts we can see that moving average is the best indicator to catch a strong trend=)

By the way regarding the Gann Hilo indicator is on this website too just select "Forex systems with MT4 Custom indicators"

Goodluck in your trading and may the pips be with you

Kind Regards,
Azim

Hi Azim,

Thanks for the comment and great system you put out there. Its quite a challenge to be able to setup moving averages to get precise entry and exit points. The beautiful thing about it is that when u look at historical charts with moving averages on it, you'll be amazed at their precise and high probability of detecting and guiding a trader on the right trend.

Well i've not really heard about the Gann Hilo activator but i might try it. But like i said after series of lengthy researches, i had to develop a personal way of getting the best profits from the system and i dont worry so much about exiting at the right time and it has worked for me most of the time.

Anyway i'll search for the indicator and see its potentials. Meanwhile i'm combining ur system on the 1hr and using mine on 30mins charts to further confirm an entry or exit point.

What kind of equity should you start with?

Yes, why not.

It would be useful for finding trailing stops, especially when the trend picks up and we decide to protect our floating profits.

Regards,
Edward

Hi Edward!
thanks so much for this site!! do you know if we can add the Parabolic Sar to this system (9 SMA/100 SMA) to find a better exit?

Hello Obike C.O.

Thank You very much for the informative information with clear explanation. I duno what else to say cuz what u were saying, i absolutely agree;)

For now i am trying to use Gann Hilo activator(custom indicator)in my trades. i found its very useful to spot good entry and exits if you combine it with Moving averages. as you mentioned before, exits is the hardest task and so i would suggest for you to try this indicator. i believe this will boost your trading results.

i will keep up with an update once i try it for several weeks,

Azim

Thank you, Obike
It's a wonderful summary and a very good exiting approach.
I'm going to publish your comment on a separate page, dedicated to exit strategies.

Kind regards,
Edward

For my system i use 10SMA, 26EMA & 200SMA. I have found Moving Average Systems quite reliable and best for trending market. If you can understand and master price/market patterns then you'll definitely have more winners than losers.

I've found this new system here quite interesting due to its simplicity and similar logic to mine. The only difference is the RVI indicator which i find very useful to determine beginning or change in a trend and further confirmation to take a trade after a cross.

from my extensive research on simple average systems, exiting seems to be a major challenge but i came up with a solution.

when u study the behaviour of the system, you'll find out that exiting after an opposite cross seems to be safe but most times you'll lose more pips and less gains. So what i do is that i place two simultaneous orders but different lot sizes bcos its evident that if a good cross happens, the tendency for the trend to stay very long is high but due to price unpredictability, the tendency for the trend to change instantaneously is uncertain as well.

I usually place my first order with a high lot size and take profit is quite close to the nearest previous high or low for the previous day(s) or week(s). Then at the same time i place an immediate second order with a moderate lot size which i allow to stay on until an opposite cross occurs or RVI occurs or my personal target is reached. With this, i dont get to bother about exiting at the peak of the trend bcos i quickly grab my pips when the trend is hot with my first order, take out the profit and allow my second order to sail on.

From my research on this system i noticed some interesting observations which might be very useful for traders attempting to use this system.

1. Good trends detected with this system stays usually for weeks or days with the 1hr charts & 30mins chart.

2. After such trends changes or ends, the probability for ranges and whipsaws to occur is very very high bcos market tends to readjust and so one should be very careful not to jump into the market immediately after a lengthy rally occurs.

3. Market instability or ranges or whipsaws as in No 2., usually last for days and sometimes weeks before a new trend begins. Sometimes trends start rebuilding at the beginning of a new month even after a lengthy rally has occurred.

4. Use support and resistance tools to know when to jump in when ranges or whipsaws occurs after a lengthy rally. I usually draw a horizontal line on the previous highest high to the recent highest high or previous lowest low to the recent lowest low for breakouts from ranges and whipsaws.

I tried a backtest from January to June 2010 for EURUSD, GBPJPY & GBPUSD with a 1000 USD and got about 120,000 USD.

For me, moving averages seems to be the most accurate tools for long term or mid short term trades. But you need to understand the market so well, practice, practice and practice to be perfect with it.

Obike C. O.

Hai User(sorry im not sure what to adress you),

You use SMA 200 and SMA 150. So how do you enter the trade? 7 or 8 out of 10 trades are successful?WOW!Thats good man! for how long do you use this system?

Azim

Guys,

i guess i just have to test the strategy first, Since i used it for a few days,LOL

But it looks promising though;)

Azim

Hello again AlexT

Thanks,its really a great information and settings you got there=D, unfortunately i'm not that good in spotting divergence=(

anyway i just found a new strategy, we can get 50-100pips or more. i will submit my strategy to edward, it is very profitable.

kind regards,
Azim