Forex trading strategy #2 (Slow moving averages crossover)

Hi Victor,

GBPUSD - sure, why not.

Regards,
Edward

hello Edward, good thing you have going here. I wanted to ask if this would work well for GBP/USD. that's the pair i'm much familiar with but recently i've been losin alot of money on it so bad that i've dropped from much profit to like 30% of my initial capital in the last 3 weeks.I need your opinion.
thanks.
Victor.

I think this would really help in getting an entry. I've always used the BB to get entries and most time when a trend begins,it may not retrace to the mid BB and I just miss out on the trade.Also I've been fond of not using stop loss and that has cost me all the profit I made and leaving me less than half of my initial capital. I really need help I guess.

Hi Ali,

In general, moving averages crossover works for any time frame. However, the smaller time frame you take, the more false signals and negative trades you'll encounter due to the fact that smaller trends on smaller time frames change fast and often do not allow enough time and room to profit.

The account size won't also matter for the type of stategy you choose as long as you use proper money management, whic in your case with 500 USD account means first of all trading with 0.01 lots only.

If you're looking to trade 5, 10 or 15 min time frame, look to adopt one the scalping strategies. The point is that even though you may be looking for more than 3-5 pips on a single trade, you still need to monitor charts closely all the time and be ready to exit any moment preserving the profits earned and cutting losses quickly if in trouble.

For 1 day TF your goal should be to pick the strategy with the lowest risks possible, which means that your stops should be not too wide, otherwise you won't be able to continue long enough in case you start with a losing streak. Trading micro lots on daily charts is twice as important comparing to scalp trading!

I'll refrain from advising any particular strategy at this point, because it is important that you pick a strategy you understand most and even better, the strategy that makes sense to you, so that after testing it on demo you can fully rely on it and have no second thoughts on entries and exits once you start trading live.

Best regards,
Edward

I haven't learn the MT4 coding yet, I won't be able to help you here, I'm sorry.
However, there is one simple website that might help you with this:
http://sufx.core.t3-ism.net/ExpertAdvisorBuilder/

Regards,
Edward

Hi George,

by exiting a trade we mean closing existing positions and taking either profits or losses they bring along. In order to maximize profits, traders use trailing stops. Trailing stops secure some of the profits already made in a trade, and allow trades to run until the stop is hit and position is closed.
You should be very selective about trades which you want to leave open while trying to maximize profits. A wide enough stop is required to allow a position to sustain market retracement and continue running without interruptions. Oftentimes this will lead to simply closing a position at least attractive to you point and leaving lots of pips on the table. Unless you have a serious reasons to believe that a market move has more to offer, you should focus on closing your profitable positions as soon as they show the signs of first troubles - when price starts to reverse.
You will benefit more if instead of trying to catch the whole price move form top to bottom, you'll focus on benefiting from the most safe and predictable part of this move.

Regarding moving averages, there is no universal approach to it - each moving average works well alone as well in combination with other moving averages and other indicators. You can basically take whichever average you prefer with any settings that make sense to you and experiment with entries and exits until you reach accuracy in the way you read and trade with your preferred moving averages.

Regards,
Edward

Hi Edward,

Thanks for this very good website. I am new to forex and would like to learn, I have few questions:

1. Is this strategy work for 5 min, 10 min, 15 min and 30 min time frame?
2. For mini account with USD 500, what is the best strategy to use in short time frame (5,10,15 min) and what strategy for 1 day time frame?

Thanks in advance for your advice.

Best regards,
Ali

how would I automate this on Meta trader ? appreciate your response..

Edward,

Can this Slow Moving Averages Crossover strategy incorporate a hybrid of one SMA together with more than one EMAs displaying crossover identification, and yet provide an accurate picture of lesser lagging effects contributed between the 2 different lagging indicators.

Does this approach display a more "accurate" candlestick situation as compared with 3 SMAs moving across the candlestick chart.

Regards.

George Lam

Edward,

Just entered the FX trading a month ago, learning the trade from Forex Strategies Revealed website, which give me an insight into FX trading. I learn a lot from this simplified website.

Following the strategy technique, the BUY/SELL entry during respective crossovers, together with Stop Loss and Entry Limit put in places, I am confused in the terminology about EXIT trade. Does EXIT trade mean to remove (cancel)the trade at the final crossover?

If it is so, then at this position, how can I maximise the profits from the earlier pre-set BUY/SELL Limit which have been positioned by candlesticks before SMAs reach final crossover to exit.

Regards.

George Lam

Thank you, Brian.
I'm sure you'll enjoy staying with us.

Regards,
Edward

wow just came across this site. edward you sound like you really enjoy trading and your methods are very easy to follow. i'm in my second year of trading and it just now starting to click for me :)i gave away a lot of money last year lol. anyway thanks for you're info and for making it free. i really appreciate this site. it's explained a lot. thanks

brian

If they work for you, use Linear Weighted.
I mean, if they signal earlier, then that's the way to go!

Hi
what moving averages is best to use simple, exponential or linear weighted,
because it seems like the linear weighted crossover signals earlier
thanks

The system works with virtually any currency pair. To give yourself a better chance to profit, start with the popular, low spread pairs: EUR/USD and USD/JPY.

In choppy markets it'll be ineffective: from breakeven trading under a strictly controlled money management, to a losing streak, especially when the choppy conditions last for an extended period of time. Therefore, once you can clearly identify the borders of the market's sideways channel, draw the lines alongside the channel and wait for a breakout before attempting any further trading with EMAs crosses.

Regards,
Edward