Complex trading system #2 (“2-Cross”)

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

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 ?

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 ??

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

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

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

This is a really great trading system. Simple and effective.

Thanks for posting it.

by the way, I am an nooob, so dont listen to me ;)

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!

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

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?

Thank you for you kind words, Augustine.

Happy learning and trading!

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

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

Thank you, Edward,
i try to change SMA 15 to SMA 34 and that seems work well, i also tried to change the SMA 15 to EMA 13 and works fine, I'm trying to entry short also when prices are above the 100 SMA and 200 SMA (and vice versa) following the rules of this strategy, I had some losses but agrees because the wins are more than losses. What do you think of all that? Thanks again for your availability. Best regards, Luigi!!!